What are my legal disclosure obligations when selling a condo or townhouse in California?

Regardless of whether you sell with an agent or via a modern infrastructure like Loqol, these three documents form the foundation of your legal protection.

Transfer Disclosure Statement (TDS). This is a comprehensive health report for your home. You must check boxes for features like appliances and security systems and disclose any known defects. In a condo, this must cover the unit interior and any common area issues you are aware of.

Seller Property Questionnaire (SPQ). This goes deeper than the TDS. It asks about insurance claims, neighborhood noise, unpermitted work, and environmental hazards. Answering this thoroughly prevents surprises during the buyer's inspection period.

Natural Hazard Disclosure (NHD). A third-party report identifying if the property is in a high-fire-risk zone, flood plain, or seismic fault line. In 2026, ensure your NHD reflects the updated Fire Hazard Severity Zone maps, as these now directly impact a buyer's ability to secure affordable fire insurance.

Because you are part of an association, you must provide a "Digital Vault" of HOA documents to the buyer. By law, the HOA must provide these to you within 10 days of your request .

Governing Documents. This includes the CC&Rs, Bylaws, and Operating Rules that dictate what owners can and cannot do.

Financial Health. You need the last 12 months of meeting minutes, the current budget, and the Reserve Study. The Reserve Study is particularly important because it reveals whether the association is adequately funded or headed for a special assessment.

Assessment Status. You must disclose the current regular dues and any approved special assessments that haven't yet become due.

Rental Restrictions. A statement regarding any prohibitions on renting or leasing the unit must be provided, as this directly affects an investor buyer's calculus.

As of January 1, 2026, several new laws have changed the "Material Fact" landscape in California.

Electrical System Disclosure (SB 382). Sellers must now deliver a disclosure advising buyers to consider an inspection of the property's electrical systems, including the main service panel, subpanels, and wiring. The disclosure notes that substandard or faulty wiring may pose a fire risk and can make it difficult to obtain property insurance, and that limited capacity may affect future additions like solar or EV charging .

Thirdhand Smoke Disclosure (AB 455). You are now legally required to disclose any actual knowledge of tobacco or nicotine residue inside the home. This includes a history of cigarette smoking or vaping. Residue embedded in walls or carpets is now a "disclosable condition" that must be brought to a buyer's attention .

AI and Digital Image Disclosure (AB 723). If your listing photos used AI-generated staging, added fixtures, or altered the view, you must include a "reasonably conspicuous" disclosure on the image and provide a link or QR code to the original, unedited photo. This applies to virtual staging, removing or adding furniture, and even altering landscapes .

Balcony Safety Certification (SB 326 / SB 410). For buildings with three or more units, the HOA must have completed a structural inspection of elevated elements like balconies and decks. As of January 1, 2026, lenders often require the "Balcony Safety Certificate" before approving a buyer's loan. You must include the most recent inspection summary in your disclosure package .

In a condo or townhouse environment, certain hidden facts must be disclosed to prevent post-sale litigation.

Deaths on Property. You must disclose if a death occurred on the property within the last three years.

Neighborhood Nuisances. This is critical for condos. If there is a neighbor with a history of noise complaints or a dispute with the HOA board, it must be noted in your SPQ.

Unpermitted Alterations. If you moved a wall or updated plumbing without an HOA "Architectural Review" or city permit, disclose it as "unpermitted work" to shift the risk to the buyer. Transparency here protects you from future liability.

The "Safe-Close" Strategy

The greatest risk in an independent sale is "Disclosure Omission." In 2026, buyers are more analytical and lenders are more restrictive. A missing signature or an incomplete form can unravel weeks of work.

Are you ready to build a legally airtight "Firewall" for your sale?

At Loqol, our automated infrastructure guides you through every check box of the 2026 mandates, ensuring your TDS, NHD, and HOA packages are 100 percent compliant.

Start your Loqol Equity Audit today to get a personalized disclosure roadmap and see how much you could gain by selling with professional-grade security.