Chapter 7: Mastering Disclosure Packages & Reports
When your buyer shows real interest in a property, that’s your cue to request the disclosure package. In competitive markets, these packages aren’t just a formality — they’re the roadmap to understanding a home inside and out. Your role as an agent is to cut through the noise, highlight what matters, and help your clients make informed decisions.
Contractor’s Inspections: Your Starting Point
The cornerstone of any disclosure package is the contractor’s inspection report. Licensed contractors evaluate the property’s major systems: foundation, roof, plumbing, electrical, heating, water heaters, and windows.
Instead of overwhelming your clients with every detail, mark up the report to emphasize urgent repairs versus long-term fixes. Then, schedule a time to walk through the report together. This step transforms complex technical language into a clear plan — and builds your client’s trust.
Pest & Termite Inspections
While the name suggests critters, these inspections often focus more on water intrusion and wood damage. Again, highlight what’s pressing and what can wait, then explain the impact these issues may have on the property’s value and livability.
Other Reports You May See
Depending on the property and region, disclosure packages can include:
Sewer line inspections
Drainage or roof inspections
Specialized structural reports
Each one adds another layer of insight you’ll distill for your client.
Preliminary Title Report
In many states, escrow or title companies prepare this report to confirm key details: taxes owed, outstanding loans, condo documents (if applicable), and the legal property description. Knowing how to read and explain this report gives your clients confidence that the home is free of liens or surprises.
Natural Hazard Disclosure (NHD)
In California, sellers are required to provide a Natural Hazard Disclosure. This document identifies whether the property sits in a fire zone, floodplain, earthquake fault zone, or area with liquefaction risk. These risks can have a direct impact on whether your buyer decides to proceed.
Transfer Disclosure Statement (TDS)
Here, sellers must truthfully answer detailed questions about the property’s condition and history. Remind your clients: if a seller lies, they can face serious legal consequences. Your job is to help buyers focus on issues that directly affect the property’s value.
Don’t Sweat the Boilerplate
Not every document in the package requires deep analysis. Many disclosures are generic — city or state ordinances, legal disclaimers, and real estate company liability statements. Skim these, but don’t spend time dissecting them.
Final Thoughts
The disclosure package is like a foreign language to most buyers. Your job is to translate it. By highlighting the most important issues, you not only protect your clients — you also position yourself as their trusted guide in one of the biggest decisions of their lives.