Buying in Silicon Valley moves fast. You rarely have days to evaluate a home before writing an offer, yet the disclosure packet can make or break your decision. If you know what to scan and how to interpret it, you can move quickly and still protect yourself. In this guide, you’ll learn what typically appears in a California disclosure packet, a rapid review workflow, Silicon Valley risk hotspots, and how to turn your findings into smart price and contract choices. Let’s dive in.
What a disclosure packet includes
Seller forms that reveal condition
The Transfer Disclosure Statement (TDS) is the seller’s snapshot of the property. You’ll see checked items about systems like roof, plumbing, electrical, drainage, past repairs, and insurance claims. Read the boxes, dates, and any qualifiers like “unknown” or “repaired by contractor.” Note any mismatch between what you see in person and what is checked.
The Seller’s Property Questionnaire (SPQ) and similar questionnaires go deeper. You may find notes on neighborhood nuisances, legal disputes, improvements, rental terms, permits, and unpermitted work. These details help you gauge risk and potential costs.
Hazard and environmental notices
Natural Hazard Disclosure (NHD) reports flag whether the home lies in state‑designated zones, such as fault, seismic hazard, flood, or fire severity areas. Use the summary to understand insurance needs and possible retrofit costs.
Homes built before 1978 include a Lead‑Based Paint disclosure. You should receive a pamphlet and any known lead hazard information for older properties.
Inspections and specialist reports
Many Silicon Valley sellers share pre‑listing inspections. Common reports include a general home inspection, pest or termite report for wood‑destroying organisms, roof or foundation reviews, sewer scopes, HVAC, chimney, pool, and more. Pre‑listing reports can save time, but you may still order your own based on your risk tolerance.
A pest or termite report often separates findings into conditions and recommended treatments or repairs. If there is active infestation or damage, you will want to price repairs or consider asking for clearance before closing.
Title, HOA, and permits
A Preliminary Title Report shows ownership, the legal description, and any recorded exceptions such as mortgages, liens, easements, and CC&Rs. Look for unreleased or judgment liens, easements that affect access or future plans, and private restrictions that limit alterations.
If you are considering a condo, townhome, or PUD, you will receive HOA documents. These include CC&Rs, rules, reserve studies, budgets, and often an estoppel or resale certificate that summarizes financials. Pending litigation and special assessments can change your monthly costs and risk profile.
Permits and municipal records, when available, help verify that major work was permitted and finaled. In older Bay Area homes, unpermitted additions, converted garages, and electrical or HVAC changes are common. Some cities also include compliance disclosures, such as sewer lateral requirements or water heater bracing.
Silicon Valley risk hotspots to watch
Silicon Valley’s terrain and climate create recurring issues that disclosures often capture. Keep an eye out for:
- Earthquakes and fault zones. Many properties fall within Alquist‑Priolo or other earthquake zones. Older homes may need bracing or anchoring updates, and unreinforced masonry is a concern.
- Wildfire risk. East and South Bay foothills often map into Moderate, High, or Very High Fire Hazard Severity Zones. This affects insurance availability, premiums, and defensible‑space obligations.
- Flooding and drainage. Creekside and low‑lying valley floor areas may have flood history. FEMA flood zones can trigger insurance requirements.
- Landslides and expansive soils. Hillside properties can face slope movement and soil stability issues.
- Unpermitted work. Additions, ADUs, and systems upgrades without permits are common and can impact financing, insurance, or future renovation costs.
- Sewer and municipal compliance. Some cities require private sewer lateral testing or repairs and other safety compliance before or at sale.
- HOA financial health. Deferred maintenance or pending litigation can lead to special assessments that raise monthly costs.
A 60‑minute review workflow
You can build confidence quickly by focusing on the highest‑impact items first. Use this scalable, 30 to 90‑minute workflow.
First 5–10 minutes: scan for showstoppers
- Open the TDS and look for major “yes” boxes or any flagged material facts.
- Check the NHD summary. If the home is in a flood, fire, or fault zone, flag it for deeper review.
- Skim the Preliminary Title Report for big liens, foreclosure notices, unusual easements, or restrictive CC&Rs.
Next 10–30 minutes: target cost and insurability
- Review the pest or termite report for active infestation or structural damage.
- Check permits for major remodels listed as unpermitted, such as kitchens, baths, ADUs, or structural changes.
- If there is an HOA, find any special assessments, deferred maintenance, budget shortfalls, or pending litigation.
- Triage pre‑listing inspection summaries. Prioritize roof, foundation, drainage, and major systems.
Final 10–30 minutes: confirm strategy and contingencies
- Ask the title officer to explain any unusual exceptions or easements.
- If hazard zones are flagged, confirm insurance availability and likely premiums before finalizing your offer.
- Decide with your agent whether to keep a standard inspection contingency, shorten it, request credits, or pass on the home.
Time‑saving tips for busy buyers
- Ask the listing agent for a brief highlight sheet that calls out major known issues.
- Use Ctrl+F across PDFs for keywords like “permit,” “unpermitted,” “liens,” “foundation,” “sewer,” “mold,” “pest,” “fire,” “fault,” and “assessment.”
- Pre‑book your preferred inspector and structural specialist so you can schedule quickly if you pursue the property.
- Maintain a red‑flag checklist to rule out dealbreakers fast.
Use disclosures to shape your offer
Disclosures are not just risk management. They are negotiation tools that inform price and terms.
Price adjustments for known defects
If reports identify roof or foundation work, drainage fixes, or structural pest repairs, you can estimate costs and reduce your offer to reflect the scope. Many buyers add a buffer for contingencies when pricing larger projects.
Repairs, credits, or holdbacks
You can request seller repairs before close or ask for a credit or price reduction. For items that require permits or inspections, an escrow holdback can cover agreed work after closing.
Contingency choices and tradeoffs
- Standard inspection contingency is commonly 7 to 17 days in California markets. It gives you time to complete inspections and negotiate repairs.
- Shortened contingencies can strengthen your position in multiple offers, but they increase risk.
- “As‑is” offers mean you accept the property’s condition. Buyers usually go this route only after thorough review or when the price already reflects known issues.
Title, HOA, insurance, and financing
You can condition removal of contingencies on receiving clear title or an HOA estoppel free of special assessments or litigation. If the home sits in fire or flood zones, you can keep insurance and financing contingencies that allow you to exit if coverage or lender approval is not feasible.
Permit cures or indemnity
When unpermitted work appears, consider requiring the seller to obtain permits and final inspections or provide a credit or indemnity to address the risk.
Practical examples
- If prior foundation repairs appear on the TDS and reports suggest movement, you might require a structural engineer’s clearance or reduce price to cover the repair estimate plus a contingency.
- If a recorded easement interferes with a planned ADU or pool, you can ask for clarification, modification, or adjust the price to reflect the limitation.
Quick checklist and typical costs
Use this checklist to stay organized:
- TDS: any major “yes” entries or material facts?
- NHD: flood, fire, or fault zone flags?
- Preliminary Title Report: liens, easements, or restrictive CC&Rs?
- Pest report: active infestation or structural damage?
- Permits: unpermitted additions or conversions?
- HOA estoppel: special assessments or pending litigation?
- Pre‑listing inspections: roof, foundation, drainage, or major system failures?
- Insurance claims history that could affect premiums?
- City compliance needs, such as sewer lateral or water heater bracing?
Who to involve, and when:
- Real estate agent: quick summary and negotiation strategy, immediately.
- Home inspector: general systems, roof, foundation, moisture, within the contingency window.
- Pest or termite inspector: wood‑destroying organisms and structural impact.
- Structural engineer: foundation, framing, hillside, as needed.
- Title officer and escrow: explain title exceptions and lien resolution early.
- HOA manager or attorney: help interpret CC&Rs and financials for condos or PUDs.
- Insurance broker: confirm coverage and premiums for fire or flood zones.
Typical Silicon Valley ranges so you can budget:
- Home inspection: $400 to $800 for most single‑family homes.
- Pest or WDO inspection: $75 to $250.
- Sewer scope: $150 to $400.
- NHD report: $40 to $200 depending on provider and depth.
- Preliminary Title Report: often included by the title company, with the title insurance premium paid at close.
- Structural engineer consult: $600 to $1,500 or more depending on scope.
Costs vary, so seek local estimates for more accuracy.
Final thoughts
Your goal is simple: make a confident decision without losing speed. When you know where to look in a disclosure packet and how to triage hazards, title, HOA, and inspections, you gain the clarity to set price and terms that match your risk tolerance. If you want a streamlined process that protects your interests and keeps you competitive, partner with a local expert who can synthesize the packet fast and guide your negotiation.
If you are ready to buy in Silicon Valley and want a clear plan for reviewing disclosures and winning the right home, connect with Elizabeth Thompson for tailored guidance.
FAQs
What is a disclosure packet in Silicon Valley home purchases?
- A disclosure packet is a bundle of seller and third‑party documents about a property’s condition, hazards, title, HOA, and permits that helps you assess risk and value before you write an offer.
Which documents in disclosures should I read first?
- Start with the TDS, the NHD summary, and the Preliminary Title Report to quickly spot showstoppers like major hazards, liens, or restrictive easements.
How fast should I review disclosures before making an offer?
- Aim for a 30 to 90‑minute triage, then consult your agent and key advisors. Many California inspection contingencies run 7 to 17 days, so quick action matters.
How do disclosures affect my price and terms?
- Use known repair costs to adjust price or request credits, and tailor contingencies around inspections, title, HOA status, insurance, and financing.
What if the packet shows unpermitted work on the home?
- You can require permits and finals before closing, ask for a credit or escrow holdback, or decide not to proceed if the risk is too high.
