What do Temecula home sellers have to disclose?

California law requires every residential seller to personally complete a Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ) before closing. These forms cover known defects, material facts, HOA rules, and special tax assessments. In Temecula, sellers must also provide a full HOA document package (in roughly 60% of transactions), disclose any Mello-Roos or CFD taxes -- which in communities like Sommers Bend run $3,300-$3,700 per year -- and order a Natural Hazard Disclosure report. Failing to disclose known issues does not protect you; California courts place the burden on sellers to reveal anything they have notice or knowledge of, and post-closing lawsuits for non-disclosure are one of the most common causes of real estate litigation in the state.

By Justin Short | July 9, 2026

The disclosure packet is the part of selling a home that makes most Temecula sellers nervous -- and for good reason.

California has some of the most demanding seller disclosure requirements in the country, and the consequences of getting it wrong are lawsuits, rescission demands, and settlements that can easily run into five or six figures.

What I see more often than you'd expect: sellers who left something off not because they were hiding it, but because they didn't know it needed to be disclosed. A patio cover that was never permitted. A roof repair done two owners ago that they heard about secondhand. A CFD tax district they've been paying for years but didn't think to mention. These gaps create real legal exposure after closing.

Here's a complete breakdown of every form you'll fill out, every package you'll provide, and the Temecula-specific items that catch local sellers off guard.

THE TWO FORMS EVERY CALIFORNIA SELLER MUST COMPLETE

The Transfer Disclosure Statement (TDS)

The TDS is required by law for all residential sales of one to four units -- no exceptions. You fill this out yourself. Your agent cannot complete it for you. California law requires you to provide the information based on your own knowledge and observation of the property.

The TDS has three main sections:

• Section A: what's included in the sale (appliances, systems, fixtures)

• Section B: malfunctions and defects in structural components -- roof, walls, foundation, windows, plumbing, electrical, HVAC

• Section C: sixteen yes-or-no questions about room additions, major damage, HOA authority, neighborhood nuisances, and material facts

You cannot leave sections blank. If you don't know the condition of a system, write "unknown." Once delivered, buyers have three days to cancel (in person) or five days (mailed).

The Seller Property Questionnaire (SPQ)

The SPQ (C.A.R. Form SPQ) covers 65+ items including permits and unpermitted work, insurance claims in the past five years, deaths on the property in the past three years (AIDS-related deaths are exempt under CA Fair Housing law), neighborhood noise or nuisances, legal disputes, easements, water intrusion, and structural movement.

Unpermitted additions are one of the biggest disclosure issues I see in Temecula. Garage conversions, room additions, patio covers, pergolas -- common in older parts of the valley. If you did work without permits, or know the previous owner did, that goes on the SPQ.

The legal standard: if you have notice or knowledge of a problem, you must disclose it. Courts aren't sympathetic to sellers who assumed the buyer would find it in inspection.

HOA DISCLOSURE PACKAGE -- REQUIRED FOR ~60% OF TEMECULA HOMES

California requires sellers to provide buyers with a full HOA document package:

• CC&Rs

• Bylaws

• Current financials

• Reserve fund study

• 12 months of meeting minutes

• Pending litigation

• Any special assessments

Cost: $300-$600 (seller pays).

HOA transfer fees are separate: $200-$500, also typically paid by the seller.

For a full picture of what you'll pay at closing:

https://www.theshortrealestateteam.com/blog/seller-closing-costs-temecula-california

Buyers have a review period after receiving HOA docs and can cancel for any HOA-related reason during that window.

Pull the package early -- no surprises.

MELLO-ROOS DISCLOSURE -- THE ONE THAT STALLS THE MOST DEALS

If you're in Sommers Bend, Morgan Hill, Lake Harveston, Roripaugh Ranch, or newer Menifee communities, you're almost certainly in a Mello-Roos (CFD) tax zone. It transfers to the buyer when you sell.

Current annual CFD assessments:

• Sommers Bend: $3,300-$3,700/year

• Lake Harveston: $1,800-$2,000/year

• Roripaugh Ranch: ~$1,900/year

• Morgan Hill: Has CFD (verify current amount with your tax bill)

• Newer Menifee communities: varies by subdivision

Once the buyer receives the CFD disclosure, they have a right to cancel.

Price and market your home with Mello-Roos built in from day one so buyers know before they write an offer.

THE REST OF THE DISCLOSURE PACKAGE

Natural Hazard Disclosure (NHD) Report

~$100-$150, third-party vendor.

Covers:

• Fire zones

• Flood zones

• Earthquake fault and seismic zones

SB 63 (2021) strengthened fire hazard disclosure requirements -- portions of Temecula and Murrieta fall within these zones.

Lead Paint Disclosure

Required for homes built before 1978.

Smoke/CO Detector Compliance

Sellers certify compliant detectors are installed.

Water Heater Strapping

Sellers certify water heater is braced against seismic activity.

Window Security Bars

If present in sleeping rooms, must have interior quick-release mechanism.

WHAT HAPPENS IF YOU DON'T DISCLOSE SOMETHING

Post-closing litigation in California most frequently comes back to disclosure failures -- not fraud, just failure.

California courts don't require intentional concealment. If you had notice or knowledge of a defect -- through a repair order, invoice, or neighbor conversation -- the burden is on you to disclose it.

The practical advice: when in doubt, disclose. Far cheaper than a lawsuit eighteen months after closing.

Working with an agent who knows the TDS and SPQ inside out is one of the most underrated parts of choosing the right representation.

Guide to choosing a Temecula listing agent:

https://www.theshortrealestateteam.com/blog/2026/6/18/best-temecula-listing-agents-how-to-choose-the-right-realtor-to-sell-your-home

Frequently Asked Questions

Does my agent fill out the TDS for me?

No. California law requires the seller to personally complete the TDS. Your agent can walk you through it and answer questions, but the information and legal responsibility belong to you. Agents complete their own separate section covering what they observed in a visual inspection.

What happens if I don't know the answer to a TDS question?

Write "unknown." Never leave a field blank -- that creates legal exposure even when you had no actual knowledge of a problem.

Do I have to disclose that someone died in my house?

Yes, if the death occurred within the past three years and was not AIDS-related. California requires disclosure of deaths within three years (Health and Safety Code Section 1710.2 exempts HIV/AIDS-related deaths). Deaths more than three years before the sale don't need to be disclosed, but answer truthfully if a buyer asks directly.

How much does the HOA disclosure package cost and who pays?

$300-$600 for the document package (seller pays). HOA transfer fees are separate at $200-$500, also typically paid by the seller. Both appear on your closing statement.

Can a buyer back out after receiving the Mello-Roos disclosure?

Yes. Buyers have a right to cancel during the CFD disclosure review period, typically within three days of receipt. Price accurately for Mello-Roos communities from the start -- buyers surprised by a $3,500/year CFD after writing an offer are more likely to cancel.

Final Thoughts

Selling a home in Temecula means navigating one of the most thorough disclosure processes in the country -- and every form matters. The sellers who get it right go in prepared.

If you're thinking about listing and want to walk through the disclosure process before you're in the middle of it, I offer a private, no-pressure listing consultation. No obligation -- just a real conversation about your home, timeline, and what to expect at every step. Reach out and let's talk through it.

About Justin Short

Justin Short is a local real estate agent who has lived in Temecula for over 25 years. A long-time top agent in the Temecula Valley, he has earned hundreds of 5-star reviews online helping buyers and sellers navigate the market with confidence.