Buying a House in California: The Inspection and Disclosure Process

California has some of the strongest buyer protections in the country — but only if you know how to use them. Here's your complete guide to the inspection and disclosure process.

Buying a home in California is exciting, expensive, and — if you're a first-time buyer — overwhelming. Between competing offers, mortgage paperwork, and emotional pressure from all sides, it's easy to rush through the most important protection you have: the inspection and disclosure period.

In California, the standard contingency period is

This guide walks you through every step of that 17-day window.

Day 1-3: Receive Seller Disclosures

Within the first few days of an accepted offer, the seller should deliver a packet of disclosure documents. In California, this typically includes the Transfer Disclosure Statement (TDS), Seller Property Questionnaire (SPQ), Natural Hazard Disclosure (NHD), and any available inspection reports the seller has.

Read these immediately. Don't wait for the inspection. The disclosures tell you what the seller says they know about the property — and when the inspection happens, you'll be comparing those answers against reality.

Day 3-7: Home Inspection

Hire your own inspector — someone who works for you, not the deal. Look for ASHI or InterNACHI certification, California CREIA membership, and strong reviews. In competitive California markets, some buyers skip inspections to make their offer stronger. Don't do this. The inspection is your most important protection.

A standard California home inspection covers the structure, foundation, roof, electrical, plumbing, HVAC, water heater, drainage, and visible signs of water damage, mold, or pest activity. It does not typically include sewer lateral inspection, geological assessment, or environmental testing — you may want to add these separately.

Attend the Inspection

Even though you'll get a written report, attending the inspection is invaluable. You can ask questions, see problems in person, and hear the inspector's verbal assessment, which is often more candid than the written report.

Day 7-10: Review the Report Against Disclosures

This is the step most buyers skip — and it's the most important one. Take your inspection report and lay it next to the TDS. For every significant finding the inspector documented, check what the seller said about that item on the disclosure.

Contradictions between the two documents are your strongest negotiating tool. If the seller said "no water damage" and the inspector found water staining, that's not just a repair issue — it's a trust issue that affects the entire transaction.

Day 10-14: Negotiate

Based on the inspection findings and any disclosure contradictions, work with your agent to prepare a Request for Repair or a credit request. Focus on safety issues, major systems, and items where the seller's disclosure contradicts the inspection.

Common negotiation outcomes include a price reduction, a credit toward closing costs, seller-funded repairs before closing, or a combination. See our negotiation guide for strategies.

Day 14-17: Make Your Decision

By the end of the contingency period, you need to either remove contingencies (committing to the purchase), negotiate an extension, or cancel the contract. If you cancel during the contingency period, your earnest money deposit is returned. If you miss the deadline, your deposit may be at risk.

California-Specific Considerations

• Natural hazard zones. Many California homes are in earthquake fault zones, fire hazard areas, or flood zones. The NHD report will tell you. This affects insurance costs and may affect future resale.
• Earthquake retrofitting. Older homes may need foundation bolting, cripple wall bracing, or other seismic upgrades. Some cities (like Los Angeles and San Francisco) have mandatory retrofit ordinances.
• Fire hardening. For homes in high fire zones, California's new Fire Hardening and Defensible Space (FHDS) disclosure may apply. Sellers must disclose the fire resilience of the home.
• Sewer laterals. Some California cities require sewer lateral inspections or compliance certificates at time of sale. Ask your agent about local requirements.
• Older housing stock. California has millions of pre-1970 homes. Common issues include galvanized plumbing, outdated electrical panels, asbestos in insulation or tiles, and foundation settling. These aren't necessarily deal breakers, but they should be factored into your offer price.