Property Disclosures: Why California Buyers Should Get a Home Inspection

Buying a home is a major financial decision, and buyers need accurate information about a property before committing to a purchase price. In California, seller disclosures and independent home inspections can help buyers understand the condition of a property and identify issues that may affect its value.

Seller Disclosures Should Come Before the Purchase Agreement

When a buyer expresses interest in a residential property, the seller and seller’s agent generally have disclosure obligations concerning known and observable conditions that could affect the property’s value or desirability. The Transfer Disclosure Statement (TDS) is one of the key documents used for this purpose.

A buyer should have an opportunity to review applicable disclosures before agreeing to purchase the property. These disclosures help establish what the buyer knows about the property when negotiating the purchase price.

However, a seller’s disclosures do not replace an independent inspection.

Why a Home Inspection Matters

A home inspection gives the buyer an independent assessment of the property’s physical condition. A qualified inspector may identify problems that are not obvious during a normal walk-through, including issues involving the roof, plumbing, electrical systems, structure, appliances, or other improvements.

Buyers can use the inspection report to better understand potential repair and maintenance costs. Their agent can also help them understand how inspection findings may affect the transaction and any applicable contingency or contractual rights.

For example, suppose a buyer agrees to purchase a home based on the information available before signing the purchase agreement. Afterward, an inspection identifies significant defects that were not previously disclosed or apparent to the buyer.

 The buyer may have contractual or legal options depending on the circumstances and the terms of the purchase agreement.

What Happens When Problems Are Discovered?

An inspection does not automatically require a seller to make every repair identified by the inspector. Instead, the buyer and seller may negotiate over repairs, credits, a price adjustment, or other solutions.

The buyer may provide the seller with the inspection report and supporting repair estimates when requesting a resolution. Whether the seller must make a particular repair or provide a price reduction depends on the purchase agreement, applicable California law, and the facts surrounding the undisclosed condition.

If a serious issue was known or should have been disclosed before the agreement was made, the timing and accuracy of the disclosure can become particularly important.

Review the Property Again Before Closing

A buyer should also conduct a final walk-through before closing. This inspection gives the buyer an opportunity to confirm that the property remains in the expected condition and that agreed-upon repairs have been completed.

The buyer can check for problems such as damaged fixtures, malfunctioning equipment, unfinished repairs, or new maintenance issues.

Protecting Your Interests as a Buyer

Seller disclosures and professional inspections serve different purposes. Disclosures provide information from the seller and seller’s agent, while an independent inspection gives the buyer another source of information about the property's physical condition.

California buyers should carefully review available disclosures, understand their inspection and contingency rights, and work with qualified real estate professionals when evaluating a property. 

When significant defects are discovered, obtaining legal advice may also be appropriate before making decisions about repairs, price adjustments, or closing.