Selling -

Disclosure Report

What is a Disclosure Report?

Disclosure reports are designed to assist sellers (and their agents) disclose legally required information to a potential purchaser in a real estate transaction in an easy to understand, economical format. Buyers can rely on the information to make a more informed decision regarding the property being purchased.


It’s the Law!

California law requires sellers to disclose certain types of naturally occurring hazards to potential buyers. Assembly Bills 6x, 1195 and 248 created a mandatory form for these disclosures. This form is the Natural Hazard Disclosure Statement.

Required Disclosure Information
There are six ‘hazard zones’. The disclosure law requires all potential buyers to be told whether the property is in one, or more, of the following zones:
  • A Special Flood Hazard Zone as designated by the Federal Emergency Management Agency (FEMA).
  • A Dam Failure Inundation Zone
  • A Very High Fire Hazard Severity Zone
  • A Wildland Area That May Contain Substantial Forest Fire Risks
  • An Earthquake Fault Zone
  • A Seismic Hazard Zone
California Civil Code Section 1103.4 provides a liability shield for sellers who rely on third party experts. This section states that the seller is not liable for errors, inaccuracies or omissions of any of the information provided by the third-party disclosure report unless the seller has personal knowledge of the error.

Where to Order a Disclosure Report

There are several companies that can provide these reports. Contact your real estate agent or the escrow company for company referrals. These reports include disclosures for Natural Hazards, Special Taxes & Assessments and Environmental Hazard information to safely comply with statutory requirements.


California Real Estate Law gives buyers three days to cancel a transaction whenever material information is disclosed to them. It is in your best interest, as the seller, to get all disclosures in the hands of the potential buyer as soon as possible. We recommend ordering the Disclosure Report as soon as the property is listed. Buyers will then be able to review and accept the disclosures as part of their offer. Your agent can advise you on these issues.