Disclosure Packets
The disclosure packet can be 40+ documents and hundreds and hundreds of pages. Where should we begin?
I’ll tell you what I look at first:
the coversheet - this may look boring, but there can actually be some really good information on what the sellers or listing agents expect in their offers. Some want the entire disclosure packet signed and included in the offer, or perhaps to use a certain title company rep since they could be familiar with a trust sale, and other things. It’s always good to do a quick pass over this.
the real estate transfer disclosure statement (TDS) - this is a required disclosure from the seller about the property condition itself.
the San Francisco Seller Disclosure page (SFSD) - Sellers are obligated under California law to disclose all material facts affecting the value or desirability of the property. You will find more property-specific info here.
3R Report: This report describes the current legal use of this property as compiled from records of City Departments. There has been no physical examination of the property itself. This record contains no history of any plumbing or electrical permits. The report makes
no representation that the property is in compliance with the law, but it is helpful to see what type of work has been done for the property.property details: tax records for the property. So you can see how many bedrooms the city thinks the property is, the square footage on record (which helps when there has been work done without a permit to expand the property, etc.)
floor plan - nice to have for future reference if you end up with this property.
Natural Hazards report- this lengthy report lists all of the hazards that could affect your property like liquefaction zones, fire hazard zones, proximity to gas transmission pipelines and more.
Home inspection report - A thorough report generated by a local inspector on the property and all of it’s systems (plumbing, electrical, foundation, roof and more). They will generally include important recommendations on what to repair ASAP and what items on the property that you should monitor. There will not be a bid on these items, but I can help you figure out who to call and possibly what a rough estimate would be based on my own experience with restoring our own home.
Pest inspection report: This is another inspection done by a professional for any issues that may be affecting the structure. These reports are broken down into two sections 1 + 2. Section 1 is what is currently affecting the structure like dry rot, fungus issues, your decking/railing. Section 2 items are what have been identified as things to monitor. These reports will have a bid for most items on the report, but be careful that some say “unknown cost”, so the dollar figure quoted may not be complete.
The preliminary title report (pre-lim) - Things to check: lot lines and things affecting the property (the title company we used actually missed noting there was an easement on our property, we had to point them out and have them do some digging), the seller’s name and information. If their taxes are paid/if they have liens on the property (and if your offer amount will cover these existing liens). You can always call the title company and have the officer go over this with you, and I suggest you do so. Any exceptions noted with a hyperlink.
Unless you’re buying in a condo or some new construction, many of the charming historic properties that San Francisco offers (or the fixers that have an appealing price tag) are 80-120 years in age. They will likely have some issues to address or some unknowns to lookout for. As a realtor of 10+ years in two old cities and a historic homeowner myself, I’m happy to walk you through what I would look for and help you figure out if you’ve got the time and budget to take on certain projects.
We will go over these disclosures together. Many are boilerplate but very important. There’s a reason California requires so many disclosures and there really is a lot of good information about homes, home ownership, hazards and more in these lengthy packets.
As always, reach out to me if you’d like help buying your own dream home in San Francisco.
