Natural Hazard Disclosure in California: A Seller’s Guide to the NHD and TDS
Natural hazard disclosure in California is one of the forms almost every home seller runs into. It tells the buyer whether the property sits in certain state or federally mapped hazard zones, like flood or wildfire areas. It usually travels alongside the Transfer Disclosure Statement (TDS), where the seller describes what they know about the home’s condition. If you’re selling, understanding both forms ahead of time makes the process calmer and helps you avoid problems after closing.
We’ve been buying houses in California since 2003, and we see these forms on almost every purchase. We’re not attorneys, so treat this as general information and talk to a real estate attorney or your agent about your specific sale.
What Is a Natural Hazard Disclosure (NHD)?
The Natural Hazard Disclosure Statement is a state-required form that tells the buyer whether the property is in any of six mapped hazard zones:
- A special flood hazard area designated by FEMA
- An area of potential flooding from a dam failure
- A very high fire hazard severity zone
- A wildland area where the state has fire protection responsibility
- An earthquake fault zone
- A seismic hazard zone (areas mapped for things like liquefaction or landslides)
Most sellers don’t research these maps themselves. A third-party NHD company typically prepares a report by checking the property against the official maps, and the seller signs the statement based on that report. The report often includes additional local and environmental information as well.
Being in a zone doesn’t mean something is wrong with the house. Large parts of the Bay Area sit in earthquake or seismic hazard zones. The point is that the buyer knows before they buy.
What Is the Transfer Disclosure Statement (TDS)?
The TDS is the seller’s description of the property’s condition. It asks about the home’s features and whether the seller knows of defects or issues such as:
- Roof leaks, water intrusion, or mold
- Foundation, structural, or drainage problems
- Room additions or work done without permits
- Neighborhood noise, nuisances, or disputes
- Lawsuits, liens, or HOA problems
The TDS is based on what you actually know. You aren’t expected to inspect the house like a contractor, but you are expected to be honest about what you’re aware of. If you know about a past leak or unpermitted garage conversion, it belongs on the form. Our guides on selling a house with unpermitted work, selling a house with foundation problems, and selling a house with mold go deeper on common examples.
Other Disclosures California Sellers Often Provide
Depending on the property and the type of sale, a seller may also provide or sign things like:
- Smoke and carbon monoxide detector compliance statements
- Water heater bracing statements
- An earthquake safety booklet and related disclosures for many older homes
- Lead-based paint disclosures for homes built before 1978 (see our lead paint disclosure guide)
- Fire hardening and defensible space information for homes in higher fire hazard areas
- When an agent is involved, additional forms like a Seller Property Questionnaire
Your agent, escrow company, or attorney can tell you which ones apply to your sale.
Does Selling As-Is Mean You Don’t Have to Disclose?
Generally, no. In California, “as-is” usually means you aren’t making repairs, not that you can skip disclosing known problems. Hiding a known defect can create legal exposure after the sale, even when the buyer agreed to buy as-is.
There are some exemptions from the TDS for certain kinds of transfers, such as some court-supervised probate sales and certain transfers between co-owners or family members. Even then, other disclosure duties may still apply. If you’re selling as an executor, administrator, or trustee, ask the estate’s attorney exactly which forms you need. Our guide on how to sell an inherited house in California covers the bigger picture for estates.
Timing Matters
Disclosures should be delivered as early as possible. If a buyer receives the TDS or NHD after signing the purchase contract, California law generally gives them a short window to cancel. Getting your NHD report and filling out the TDS before you go under contract helps keep escrow on schedule. Our article on how long it takes to sell a house in California explains where these steps fit.
How This Works When You Sell to Us
When we buy a house, the property still goes through a licensed title and escrow company, and the disclosure paperwork that applies to the sale is still handled. What’s different is how we use it. We buy as-is and base our offer on comparable sales, our estimate of the repair work, and our holding and resale costs, and we’ll walk you through the numbers if you ask. We don’t renegotiate over small or expected findings. If something significant and unknown comes up, we’ll talk about it openly. An honest disclosure helps us give you a more accurate offer from the start.
When a Cash Sale Isn’t the Best Option
If your home is in good condition, your disclosures are short, and buyers are competing in your neighborhood, listing with a good agent may bring you more money, even after commissions. A cash sale tends to make the most sense when the house needs significant work, has a long list of known issues, or when speed and certainty matter more than top dollar. Our cash offer vs. listing page shows how the numbers typically compare.
Frequently Asked Questions
It’s a state-required statement that tells a buyer whether the property is in any of six mapped hazard zones, including flood, dam inundation, high fire hazard, wildland fire, earthquake fault, and seismic hazard zones. Most sellers order a third-party NHD report to prepare it.
It’s usually the seller, though who pays can be negotiated in the purchase contract. NHD reports are typically ordered through the agent, escrow, or directly from an NHD company.
For most sales of one to four unit residential properties, yes. Some transfers are exempt, such as certain court-supervised probate sales, but other disclosure duties may still apply. Ask an attorney if you’re unsure.
Generally, yes. As-is usually means no repairs, not no disclosures. California sellers are generally expected to disclose known material defects either way.
If you learn about something material before closing, tell the buyer and update your disclosures in writing. Problems discovered after closing can lead to disputes, so it’s best to be thorough and honest from the start and get legal advice if you’re unsure.
Get an Honest Offer
If you’re preparing to sell and your disclosure list is getting long, we’re happy to look at the house and give you a no-obligation cash offer you can compare against listing. No pressure. Call Lawrence at (510) 824-8710 or fill out the form below.