Residential Disclosure Guide

If there is a construction defect, the contractor must disclose the information in understandable language that is underlined and in bold-faced type with capital letters. If the property is or has been the subject of a construction defect claim or lawsuit, the seller must provide the following information to the buyer:

  • copies of all notices given to contractor
  • expert opinions obtained by claimant
  • terms of settlement or order of judgment
  • detailed report of all repairs

Construction defects must be disclosed to the buyer before purchase of the residence. If the property is or has been the subject of a defect claim or lawsuit, the information must be disclosed 30 days before close of escrow, or if escrow is less than 30 days, then immediately upon signing the sales agreement. If a claim
is made while in escrow, the disclosure must be made within 24 hours of notice of complaint.

The purpose of disclosures relating to construction defects is to make the buyer aware of any construction defects in the property.

If the property is located within a common-interest community and is the subject of a defect claim or lawsuit,
this information must be disclosed in the buyer’s resale package (see Common-Interest Communities).