Ever felt pressure to make a fast offer in San Francisco and wondered how you can still protect yourself? That’s where the disclosure package comes in. It is your early look at a home’s condition, risks, HOA health, and legal history so you can make a confident decision. In this guide, you’ll learn what a disclosure package includes, how to review it, which red flags to watch, and how disclosures shape your offer strategy in San Francisco. Let’s dive in.
What a disclosure package is
A disclosure package is a set of documents a seller provides to help you understand the property. It covers known defects, hazard zone status, HOA records for condos, and any inspection reports or permits the seller has. In California, many disclosures are required by law to help you assess value, safety, insurability, and your intended use.
At the state level, seller disclosures are governed by the Transfer Disclosure Statement rules in California Civil Code §1102 and the Natural Hazard Disclosure rules in California Civil Code §1103. If the home was built before 1978, federal law requires a lead‑based paint disclosure, overseen by the EPA’s real estate disclosure guidance.
Core California disclosures
You will typically see these items in San Francisco transactions:
- Transfer Disclosure Statement (TDS). The seller’s written answers about known conditions and system issues. See the statute at Civil Code §1102.
- Natural Hazard Disclosure (NHD). A report showing whether the property lies in mapped hazard areas like flood, fault, liquefaction, landslide, or fire zones, as required by Civil Code §1103.
- Lead‑based paint disclosure. Required for homes built before 1978, with EPA information and a right to inspect. Learn more from the EPA lead disclosure page.
- Megan’s Law notice. An informational notice about the statewide registry.
- Any known material facts. Sellers must disclose known conditions that could affect value or safety.
Condo and HOA packet essentials
If you are buying a condo or any common‑interest development, California’s CID resale rules require a package of association documents. The law in Civil Code §4525 outlines delivery requirements and gives you a statutory right to cancel within a set period after receiving required HOA documents.
Expect to receive:
- Governing documents. CC&Rs, Bylaws, Articles, and Rules & Regulations.
- Financials and reserves. Current budget, financial statements, reserve study or balance, and insurance details.
- Meeting minutes. Usually 12–24 months of board and member minutes or summaries.
- Assessments and litigation. Statements of unpaid or pending special assessments and any legal matters.
- Unit and common area notices. Any violations, alterations, parking rights, pet rules, and rental restrictions.
Typical reports and inspections
Sellers may include recent third‑party inspections or service records. These help you understand condition and scope next steps, but you should still get your own inspections.
Common items include:
- General home inspection report
- Termite or wood‑destroying organism (WDO) inspection
- Sewer lateral scope report and repairs
- Roof, chimney, or HVAC service records
- Foundation or structural engineer reports
- Plumbing and electrical repair invoices
San Francisco local checks
San Francisco properties often involve extra municipal considerations. You should review or request:
- DBI permits and violations. Confirm open permits, past remodels, and any outstanding violations using the City’s Department of Building Inspection resources. Start with the San Francisco DBI site.
- Seismic and soft‑story status. Some multi‑unit buildings have mandatory retrofit requirements through DBI programs.
- Sewer lateral condition. Older homes can have clay laterals or root intrusions. Review any scope reports and learn about local sewer lateral responsibilities from the San Francisco Public Utilities Commission.
- Rent control and tenancy disclosures. If tenant‑occupied, review tenancy status and rent control implications through the San Francisco Rent Board.
- Hazard mapping. Liquefaction or landslide zones appear in California Geological Survey maps. Check the CGS Seismic Hazard Zones map. For flood zones, review FEMA’s Flood Map Service Center. For wildfire designations, see CalFire’s Fire Hazard Severity Zones.
How to review step by step
A thoughtful review process helps you move quickly with confidence.
Request the full package early. Ask for disclosures as soon as you are serious about a property. For condos, HOA packets may arrive shortly after acceptance, but request them as early as possible.
Assign roles. You and your agent review for obvious red flags. Hire a general home inspector. For condos, consider a professional review of HOA documents. Order specialty inspections as needed, such as sewer scope, pest, roof, structural, or mold.
Use statutory windows. HOA resale documents can trigger a set cancellation period under Civil Code §4525. Make decisions promptly within that window.
Get estimates. If disclosures reveal issues, obtain contractor bids before removing inspection contingencies or increasing your offer.
Your prioritized checklist
- Read the TDS and seller statements for known defects and ages of major systems.
- Study the NHD report for fault, liquefaction, landslide, flood, or fire zones and consider insurance and inspection implications.
- Verify DBI permit history and ensure no open violations or unpermitted additions.
- For condos, scrutinize HOA budgets, reserves, insurance, minutes, assessments, and any litigation.
- Review pest/WDO reports for active infestation or structural wood damage.
- Evaluate sewer scope results and potential replacement costs.
- Confirm permits and invoices for major remodels.
- Treat seller‑provided inspections as helpful, but still obtain your own.
- Check compliance with local seismic or soft‑story programs.
- Ask about insurance claim history and any insurance availability issues.
Red flags to watch
Keep an eye out for issues that can affect safety, cost, or resale.
- Structural symptoms. Prior foundation work, sloping floors, large cracks, or engineer letters showing ongoing concerns.
- Chronic water intrusion. Recurrent roof leaks, deck rot, or incomplete mold remediation.
- Open permits or unpermitted work. Additions or conversions without permits can create safety and insurance risks.
- HOA financial stress. Low reserves, pending special assessments, or litigation that could lead to large owner costs.
- Insurance hurdles. Multiple prior claims or difficulty obtaining earthquake or flood coverage.
- Seismic exposure. Soft‑story buildings without completed retrofits can require major work.
- Sewer lateral defects. Root intrusion or collapsed clay lines.
- Tenant complications. If occupied, confirm rent control status and any unresolved disputes via the Rent Board.
Offer strategy in San Francisco
Disclosures should shape your offer terms, not just your price.
- Keep essential contingencies. A general inspection, plus targeted inspections like sewer and pest, helps manage risk. In competitive scenarios, you can shorten timelines instead of waiving entirely.
- Add an HOA review contingency. For condos, allow time to evaluate financials, minutes, and rules under your statutory rights.
- Plan for financing and appraisal. Hazard zones or deferred maintenance can affect loan programs and appraisal outcomes. Work with a lender who understands local nuances.
- Negotiate credits or holdbacks. If the seller will not fix a known issue, negotiate a closing credit or escrow holdback backed by contractor estimates.
- Balance price and risk. A higher price can sometimes be paired with kept contingencies to protect you while staying competitive.
Questions to ask your agent
- Do we have complete TDS and NHD documents? If not, when will we receive them?
- For condos, when will the HOA packet arrive, and what is our statutory cancellation period after receipt under Civil Code §4525?
- What does DBI show for permits and violations? Any soft‑story or seismic obligations?
- Do we have pest/WDO, sewer scope, or other recent inspection reports? If not, can we schedule them now?
- Are there special assessments, litigation, or low reserves in the HOA?
- Were major remodels permitted? Can we see permits and contractor invoices?
- Is the home in mapped hazard zones that affect insurance or lending? Should we get specialty inspections?
- If there are tenants, what is the rent control status and documentation from the Rent Board?
When to negotiate or walk
You can often solve a defined problem with a defined cost. If an issue is repairable and well documented, you can request a price credit, escrow holdback, or a repair contingency tied to contractor bids. That keeps the deal moving while protecting your budget.
Consider walking away if disclosures reveal active structural or environmental hazards that the seller will not address, or if the cost and uncertainty are too high. Your risk tolerance matters, but waiving fundamental inspections like structural or pest introduces significant exposure in an older urban housing stock.
Work with a local guide
A thoughtful disclosure review can save you money and stress. You want a partner who knows San Francisco’s building stock, HOA dynamics, and city programs, and who can coordinate inspections and lending quickly. Now Homes is a family‑run San Francisco brokerage with decades of local experience, integrated mortgage services, and a hands‑on approach to help you move fast without missing the details.
If you are planning a purchase or want a second set of eyes on a disclosure package, reach out to Now Homes for a friendly, no‑pressure conversation.
FAQs
What is a disclosure package in San Francisco real estate?
- It is a set of seller‑provided documents about condition, hazards, permits, HOA health, and inspections so you can evaluate value, safety, and risk before you commit.
What is included in a condo HOA packet for buyers?
- Expect governing docs, budgets, reserves, insurance, meeting minutes, assessments, litigation disclosures, rule summaries, and a resale certificate per Civil Code §4525.
How do I check permits and violations in San Francisco?
- Review the seller’s packet and search City records using the Department of Building Inspection resources on the SF DBI website.
Why does the Natural Hazard Disclosure matter in San Francisco?
- It identifies hazard zones like liquefaction, landslide, flood, or fire that can impact inspections, insurance, and financing under Civil Code §1103.
What are common red flags in HOA documents?
- Low reserves, pending special assessments, repeated repair issues in minutes, litigation, narrow insurance coverage, or strict rental rules that limit flexibility.
Can I cancel after receiving HOA documents in California?
- Yes, condo buyers have statutory rights to review and, within specific timelines, cancel after receiving required packets under Civil Code §4525.
