Beyond the Fine Print: How to Decode San Francisco Real Estate Disclosures

Buying a home in San Francisco is an exciting milestone, but it’s also a complex process with many moving parts. One of the most critical steps is reviewing real estate disclosures—a set of legally required documents that provide buyers with key details about a property’s condition, history, and potential risks.

Many buyers assume disclosures are just standard paperwork, but they can contain crucial information that directly impacts your decision. As your agent, I don’t just hand over a disclosure packet—I carefully review every document, flag anything vague or concerning, and advocate for clarification when needed. As your realtor, it is my responsibility to protect your investment and ensure you fully understand what you’re buying.

In this post, I’ll break down what disclosures are, why they matter, and what to look for when purchasing a home in San Francisco.

What Are Real Estate Disclosures?

Disclosures are documents provided by the seller that outline known issues with the property. These reports help buyers make an informed decision and protect sellers from future legal claims.

In San Francisco, disclosures are especially important due to the city’s unique geography, aging housing stock, and strict regulatory environment. From earthquake safety to rental restrictions, there are specific factors buyers should be aware of before committing to a home.

Key Disclosures in San Francisco

1. Transfer Disclosure Statement (TDS) & Seller Property Questionnaire (SPQ)

California law requires sellers to complete these forms, which include details about:
✅ The property’s physical condition
✅ Any past repairs or defects
✅ Issues with appliances, plumbing, electrical, or foundation
✅ Neighborhood nuisances (e.g., noise from bars, bus stops)

Sellers are required to disclose what they know, but they are not expected to investigate beyond their personal knowledge. This is why a thorough review—and sometimes additional inspections—are essential.

2. Natural Hazard Disclosure (NHD) Report

San Francisco homes may be in areas prone to natural disasters. This report informs buyers if a property is in a:
✅ Seismic Hazard Zone (liquefaction, landslides)
✅ Special Flood Hazard Zone
✅ Fire Hazard Severity Zone

If a home falls within these zones, additional insurance or seismic retrofitting may be needed.

3. San Francisco-Specific Disclosures

Due to the city’s unique housing regulations, additional disclosures may include:

✅ Soft-Story & Seismic Retrofit Disclosure – If the property is in a soft-story building (common in older multi-unit buildings), seismic retrofit work may be required or already completed.

✅ Rent Control & Tenant Rights – If the home has tenants, buyers must understand San Francisco’s strict rent control and eviction protection laws. Even buying an owner-occupied duplex can have implications.

✅ Historical or Landmark Designation – Some properties fall under San Francisco Historic Preservation rules, limiting renovations or requiring approval for changes.

✅ Unpermitted Work Disclosure – Many older homes have had renovations without city permits. I always recommend checking the property’s permit history by reviewing the San Francisco Department of Building Inspection’s 3R Report to ensure no outstanding violations could cause future issues.

✅ Energy & Water Conservation Ordinances – Before a home sale, San Francisco requires compliance with energy efficiency and water conservation upgrades.

✅ Megan’s Law Disclosure – Buyers are notified about the state’s database of registered sex offenders.

✅ Mello-Roos Assessments – Some properties may have special tax districts that increase annual costs.

4. Condominium & HOA Disclosures

For buyers purchasing a condo, TIC (Tenancy in Common), or co-op, additional disclosures may include:
✅ HOA financials & meeting minutes (to assess building reserves & maintenance plans)
✅ Pending assessments or litigation
✅ Rental restrictions or pet policies

What Should Buyers Do?

✅ Review Disclosures Carefully

Disclosures are often hundreds of pages long, but don’t skim! Some issues may not be deal-breakers but could impact your decision or negotiation strategy.

✅ Ask Questions & Seek Clarifications

Some disclosures may be vague or unclear—this is where I step in. I thoroughly review documents, flag potential concerns, and push for additional details or documentation when necessary.

✅ Consider Additional Inspections

Disclosures provide a snapshot, but I often recommend specialized inspections (e.g., for seismic safety, foundation issues, or water intrusion) beyond what a general inspection might catch.

✅ Look Beyond the Property Line

San Francisco is a dense city—what happens next door can impact your living experience. Construction projects, transit lines, or entertainment venues nearby should be considered.

Final Thoughts

San Francisco’s real estate market moves fast, but disclosures give buyers a crucial opportunity to evaluate a property beyond its curb appeal. Understanding what these documents include—and what red flags to look for—can help you make a confident and informed decision.

As your agent, I take the disclosure review process seriously and ensure that you’re fully informed and protected. If you're thinking about buying in San Francisco and want expert guidance, let’s connect!