Disclosures and local requirements when selling in Monterey County

Last checked: September 2026. Disclosure rules and local requirements change. Your agent, escrow officer, and the city or agency involved can confirm what applies to your sale.

California has some of the most detailed seller disclosure rules in the country, and several cities here add their own reports and inspections on top. None of it is hard, but it takes time, and it goes much more smoothly when you start early.

This chapter covers what you'll need to disclose, what the city or district may require, and how to avoid the problems that tend to come up in escrow.

The basic rule: when in doubt, disclose

Sellers in California have to disclose known facts that affect the value or desirability of the home. The forms help you do that, but they don't limit it. If you know about something and you're not sure whether it matters, disclose it.

Disclosing a problem rarely kills a sale. Buyers expect older homes to have issues. What causes trouble is a buyer finding something later that the seller knew about and didn't mention. That can lead to a canceled deal, or a dispute after closing.

The main seller disclosures

These are the forms most sellers here fill out. Your agent will give you the current versions and walk you through them.

• Transfer Disclosure Statement (TDS). A state form where you describe the home's condition, what's included, and any known problems.
• Seller Property Questionnaire (SPQ). A more detailed questionnaire that asks about things like past repairs, insurance claims, neighborhood issues, and anything else you know about.
• Natural Hazard Disclosure (NHD). A report, usually ordered from a disclosure company, that shows whether the home is in a flood zone, fire hazard zone, earthquake fault zone, or other mapped hazard area.
• Lead-based paint disclosure, for homes built before 1978.
• Smoke and carbon monoxide detectors and water heater bracing. You'll sign a statement that the home meets state requirements, and in some cases, local ones too.

Depending on the home, you may also need:

• HOA documents, if the home is in an association. The buyer gets the association's governing documents, like the CC&Rs, plus its budget, reserve study, and recent meeting minutes. The HOA usually provides these for a fee, and they can take a little while to arrive, so it helps to order them early.
• Any death on the property within the past 3 years. This is usually covered as a question on the SPQ, not a separate form. It comes up more often than people expect with inherited homes.

Timing matters

Under the standard purchase contract, seller disclosures are usually due within 7 days after your offer is accepted. If the TDS is delivered after the buyer signs their offer, the buyer gets a short window to cancel after receiving it, 3 days if it's delivered in person or 5 days if it's delivered by mail or electronically.

The easy way to avoid delays is to fill out your disclosures before you list. Many sellers here make them available to buyers before offers come in. That gives buyers more confidence and can mean fewer surprises in escrow.

Local reports and inspections

Several cities here require their own report or inspection before a sale can close. The seller usually orders these, and they can take a few weeks, so it's worth starting as soon as you list.

• Monterey. A Residential Property Inspection report is required before closing on single-family homes and apartment buildings. Condos are exempt. It includes an exterior inspection and a records review, and the city can inspect the inside if it has reason to believe there's unpermitted work. Monterey also requires a sewer lateral inspection before a sale.
• Seaside. A Real Property Disclosure Report is required before a sale. It includes an exterior inspection and a records review, and the property has to meet the city's water conservation rules before closing.
• Pacific Grove. The city requires a residential building record report before closing, with a records review and an exterior inspection.
• Marina. A residential property inspection report is required before closing and is delivered to the buyer.
• Carmel area. The Carmel Area Wastewater District requires a video inspection of the sewer lateral when a property sells. If the line fails, it has to be repaired or replaced.

A sewer lateral is the pipe that carries wastewater from the house to the public sewer. Older lines with tree roots or cracks are common here, and repairs can be expensive. Getting the inspection done early gives you time to plan.

If a city report calls out something that needs to be corrected, the seller usually handles it here. That's the local custom, and the standard purchase contract generally puts required corrections on the seller unless you agree otherwise. It is negotiable, though. If a seller can't make the repairs, for example because of the cost, the responsibility can sometimes be passed to the buyer, usually with a credit or a price adjustment. Your agent can help you figure out the best approach.

The water fixture rule on the Peninsula

If the home is inside the Monterey Peninsula Water Management District, every sale triggers water efficiency requirements. That includes Carmel-by-the-Sea, Del Rey Oaks, Monterey, Pacific Grove, Sand City, Seaside, and unincorporated areas like Pebble Beach and Carmel Valley.

The home needs:

• High efficiency or ultra high efficiency toilets
• Showerheads at 2.0 gallons per minute or less
• Bathroom faucets at 1.2 gallons per minute or less
• Kitchen, utility, and bar sink faucets at 1.8 gallons per minute or less
• A rain sensor on any automatic irrigation system

The owner is responsible, so this usually falls to the seller. Many of these fixtures are inexpensive, and if you've replaced them in the last several years, you may already comply. The buyer and seller can also agree that the buyer will handle it after closing.

The district may inspect every water fixture in the home, and it compares what it finds against its records. If a bathroom or fixture was added without a permit, this is often where it comes up. The district may also have an open permit or a notice on file from a past owner. It may be worth asking the district what's on file for your property before you list.

For more on how the water rules work, see Chapter 6 of the Buyer's Guide.

Fire zone requirements

If your home is in a High or Very High Fire Hazard Severity Zone, there are a few extra steps:

• Defensible space documentation. You'll need to give the buyer documentation that the property complies with defensible space rules. If you can't get it before closing, you and the buyer can agree in writing that the buyer will get it within a year.
• Fire hardening disclosures. For homes built before 2010, you'll give the buyer a notice about the home's fire risk, a disclosure of features that make the home more vulnerable to embers, like single-pane windows or wood shingles, and a list of low-cost fire hardening improvements that notes which ones you've already done.

The new fire maps released in 2025 added a lot of homes to these zones, so even if your home wasn't in one when you bought it, check again. The Monterey Fire Department does these inspections for Monterey, Pacific Grove, Carmel-by-the-Sea, and Sand City. Other areas are handled by their own fire agency or CAL FIRE.

For more on fire zones and insurance, see Chapter 7 of the Buyer's Guide.

Unpermitted work

This is one of the most common issues with older homes here. A garage conversion, an added bathroom, or an addition done decades ago may never have been permitted. Sometimes the current owner doesn't even know, especially with an inherited home.

It most often comes up in a city inspection report. It can also come up in the water district's fixture inspection, or when a buyer compares the house to the permit records. When it comes up in the middle of escrow, it can delay closing, reduce the price, or cause a buyer to walk away.

It's better to find out before you list:

• Check the permit history. For homes inside a city, ask that city's building department. For unincorporated areas, the county has an online permit system and can provide a residential records report.
• Compare it to the house. If there's a bedroom, bathroom, or addition that isn't on record, talk with your agent about your options. Sometimes it can be permitted after the fact. Sometimes it's better to disclose it clearly and price accordingly.
• Disclose what you know. If you know about unpermitted work, it belongs in your disclosures, even if you don't plan to fix it.

Where to focus your own research

• As soon as you decide to sell: Start your disclosures, and ask your agent which city reports and inspections your sale will need.
• If you're on the Peninsula: Check your water fixtures, and ask the water district what's on file.
• If you're in a fire zone: Schedule your defensible space inspection early.
• If the home is older or inherited: Look at the permit history before you list.

If you're not sure what applies to your home, reach out. I'm happy to walk through it with you.

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This is general information, not legal advice. Disclosure requirements depend on the property and change over time. Talk to a real estate attorney about your specific disclosure questions. I'm a real estate agent, not a lawyer.