Disclosure Requirements

# California Disclosure Requirements ## The Philosophy of California Disclosure Law California has some of the most comprehensive seller and agent disclosure requirements in the United States. The underlying principle is that buyers deserve full, accurate information to make informed decisions — and that neither sellers nor agents should be able to hide problems behind "as-is" language or caveat emptor ("buyer beware"). California courts and the legislature have consistently expanded disclosure obligations since the landmark 1984 case *Easton v. Strassburger*, which held that agents have an affirmative duty to inspect and disclose — not just relay what the seller says. Failure to make required disclosures is one of the most common sources of post-closing litigation, DRE disciplinary actions, and errors-and-omissions insurance claims in California. --- ## Agency Disclosure (AD) — Civil Code §§ 2079.14–2079.16 Before the TDS or any property disclosure, the very first disclosure in a California transaction is the Agency Disclosure — the form titled *"Disclosure Regarding Real Estate Agency Relationship."* It tells the parties who the agent works for. This is required by Civil Code Section 2079.16, which sets out the form and defines three possible agency relationships: - Seller's Agent — acts exclusively for the seller under a listing agreement. - Buyer's Agent — acts exclusively for the buyer (with the buyer's consent). - Dual Agent — represents both seller and buyer, only with the knowledge and consent of both. The form states that every agent owes the *"diligent exercise of reasonable skill and care"* and *"a duty to disclose all facts known…