In the context of real estate transactions, a disclosure refers to certain information that a seller must, by law, provide to a buyer about problems or hazards affecting the property. If you wanted to put your house on the market, for example, and it had an unreinforced masonry foundation –– a flaw that rates as a seismic structural hazard in California –– you would have to disclose that fact to a potential buyer.

As the seller, you are not usually required to remedy disclosed problems, but undertaking at least manageable improvements could raise the value of your property. Also, when you make an assessment of the physical condition of your home, you are not required to hire a professional, nor are you obligated to cut into walls or remove siding to make your investigations. Bear in mind, though, that your prospective buyer will likely have an inspection done, so feigned ignorance of problems might not get you far — and this strategy is also illegal. Intentional failure to disclose required information could lead to your being sued for fraud, deceit or misrepresentation in a transaction. It is wise to be honest and stay on top of your responsibilities.
 
If you are selling your home in San Francisco, there are several types of disclosures that you and/or your broker must make to the buyer. These are included in documents such the Transfer Disclosure Statement and the Natural Hazard Disclosure Statement.

For complete details on disclosures mandated by state and federal law, see the California Department of Real Estate’s booklet, Disclosures in Real Property Transactions. Also, remember that an experienced REALTOR® will be aware of these and other local requirements, so trust he/she to be able to guide you through the disclosure process.