The California Transfer Disclosure Statement (T D S) over any damage or defects with the property, or explaining what the property has such as whether or not it is connected to public sewer or if it has a septic tank. All of the items and systems that transfer as real property in the transaction are noted… The Transfer Disclosure Statement protects the Seller from non-disclosure disputes if the buyer ends up having any issues with the property. The TDS also lets the buyer know ahead of time what kind of property they are buying.
Another type of disclosure is the California Natural Hazard Disclosure Statment. The NHD goes over natural hazard areas that the home falls under. These hazards include Flooding, Earthquake Fault Zone, and Wildland fires for example. It is common for sellers to reach out to third party companies to prepare this report for them.
It is best to have these disclosures prepared for any serious buyers. The sooner you get this information to buyers the less likely they are to back out of the property due to something they do not like. Some sellers prepare all disclosures and inspection paperwork before listing so the information is available to serious buyers which shows the seller is serious too.