Buying in Palo Alto often moves fast. You might find a home you love, then get a link to a thick “disclosure package” and a request to submit an offer quickly. It can feel like a lot to absorb. You deserve clear guidance on what these documents mean and how to use them to protect your interests. In this guide, you’ll learn what a disclosure package is, what it typically includes in Palo Alto, how to verify permits, and a practical way to review everything before you write an offer. Let’s dive in.
What a disclosure package is
A disclosure package is a collection of documents the seller provides that describe known facts, defects, hazards, encumbrances, and legal conditions that could affect the property. In California, sellers must disclose known material facts that impact value or desirability. The Transfer Disclosure Statement is the primary statewide form, and additional disclosures are required by law or included by custom.
In the Bay Area, including Palo Alto, listing agents typically assemble a full digital packet so buyers can review quickly. This helps you make an informed decision, especially if you are considering a shorter or no-contingency offer. Disclosures reveal what the seller knows, but they do not guarantee the absence of undiscovered defects, so your own due diligence still matters.
If you want to understand the legal baseline, read the California Department of Real Estate guidance on seller disclosures and the standard CAR disclosure forms.
What you’ll see in a Palo Alto packet
Below are documents commonly included in local disclosure packages and how to read them.
Transfer Disclosure Statement and SPQ
The Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ) summarize the seller’s knowledge of the property’s condition. Look for water intrusion, roof or plumbing issues, past repairs, foundation items, and any mention of permits or unpermitted work. Compare answers across forms and reports for consistency.
Natural Hazard Disclosure
The Natural Hazard Disclosure (NHD) flags mapped risks such as flood, earthquake fault or seismic hazard areas, and fire hazard severity zones. If the home sits in a flood zone or liquefaction area, that can affect insurance, rebuilding costs, and permitting. Use the NHD to focus your follow-up questions and inspections, and cross-check with the FEMA Flood Map Service Center as needed.
Lead-based paint disclosure
If the property was built before 1978, you will see a lead-based paint disclosure and an EPA pamphlet. Review any testing results if provided and plan for safe renovation practices. You can learn more from the EPA lead-based paint rules.
Statutory advisories and local notices
Packets often include statewide advisories such as the Megan’s Law notice, gas pipeline information, and details about special district assessments, including Mello-Roos if applicable. These are standard informational forms. You can explore the advisory at the California Department of Justice Megan’s Law portal.
Preliminary title report
The preliminary title report lists ownership, liens, easements, and other recorded encumbrances. Note anything that limits use, like utility easements that cross a yard or recorded encroachments. If you plan additions or a pool, easements and setbacks can matter.
HOA documents for common-interest properties
If the property is in an HOA, expect CC&Rs, bylaws, budgets, meeting minutes, and resale disclosure statements. Read for special assessments, reserves, maintenance obligations, and any restrictions on pets, rentals, or exterior changes. Pending litigation or low reserves can signal higher future costs.
Pest and termite report (WDO)
A Wood Destroying Pests and Organisms report notes active infestations, damage, and recommended repairs. Focus on structural areas with dry rot or termite activity and the cost scope for clearance. Some lenders or buyers require clearance before closing.
Seller inspections and repair records
Sellers may include home inspection reports, roof or foundation evaluations, and repair invoices. Check the dates and the scope of each report. If major work was done, confirm that permits were obtained and finaled.
Municipal records and permits
Look for permit history and final inspection sign-offs for additions, remodels, electrical or plumbing work. Missing or expired permits can affect financing, insurance, and resale. If records are unclear, verify with the City directly.
Utility and service district details
These note water and sewer providers and any special fees. In Palo Alto, properties are typically sewer-connected, but confirm the connection and status. If anything is unusual, ask for supporting documentation.
Specialized environmental or structural reports
Some packets include soil, radon, mold, or environmental assessments. Review findings and recommendations and confirm the inspector’s qualifications. If results are older, consider updating them.
FIRPTA tax withholding
If the seller is a foreign person under federal rules, you may see a FIRPTA affidavit or withholding notice. Your escrow officer will guide the process if this applies.
Palo Alto permits and local checks
Unpermitted work can impact safety, financing, insurance, and resale. Always confirm what was permitted and finaled, especially for additions, conversions, and major systems. Start by requesting copies of permits and final inspections from the seller, then verify with the City.
- Use the City of Palo Alto Building Division to search permits or request records. Staff can help you confirm whether an older permit reached final sign-off.
- Check ownership and recorded documents with the Santa Clara County Assessor and Recorder.
- For seismic context, cross-check mapped hazard areas with the California Geological Survey or the USGS. For flood zones, rely on the FEMA Flood Map Service Center.
If work appears unpermitted, you can request that the seller obtain retroactive permits or negotiate a credit or price change. Retroactive permits may require upgrades to current code, so discuss timelines and cost with your agent and inspectors.
How to review a packet before writing an offer
Use this simple workflow to move fast without skipping key steps.
- Request the full disclosure package right away. In Palo Alto, documents are often shared electronically through the listing agent or MLS.
- Scan for immediate deal-breakers. Check for high-risk hazards, significant defects, or major system failures. If costs or risks exceed your comfort, step back before investing more time.
- Review the preliminary title report. Confirm easements, encroachments, and any restrictions that could affect your plans.
- Verify permit history for additions or major systems. If the packet claims “permits finaled,” ask for proof and confirm with the City of Palo Alto.
- Evaluate the age and scope of seller inspections. Older reports may not reflect current condition. Note any limitations and recommend follow-up where needed.
- Decide on an inspection contingency strategy. In competitive situations, some buyers consider shortening or waiving contingencies. Weigh that risk carefully based on the quality of the disclosures and your tolerance for unknowns.
- Order targeted inspections quickly if you plan to offer. Common choices include general home, pest, roof, and, when indicated, structural, HVAC, sewer scope, or soils.
- If you see anomalies, get specialists involved. Mold, foundation movement, or complex electrical work may warrant further analysis before you proceed.
Timing in Palo Alto
Typical California inspection periods range from 7 to 17 days. In Palo Alto’s multiple-offer scenarios, buyers often shorten timelines. The earlier you review disclosures, the more confidently you can set contingencies that match the property’s true condition.
Red flags that deserve a pause
- Declared unpermitted additions or seller notes that no permits were obtained.
- Repeated water intrusion, moisture staining, or mold concerns in the TDS or reports.
- Foundation work or structural changes without permits or final sign-offs.
- Active termite infestations or extensive WDO repair recommendations.
- Major title issues such as tax or mechanic’s liens.
- HOA litigation, low reserves, or large special assessments.
- Property located in a high-hazard zone with limited or costly insurance options.
If something is missing or undisclosed
If a seller fails to disclose a material fact, California law offers potential remedies. Outcomes depend on the details, so preserve your documentation and consult your agent, and seek legal counsel when appropriate. Practically, you can often negotiate repairs, credits, or additional inspections during escrow if new information comes to light.
Protect your interests with a plan
A strong offer starts with a complete understanding of the home. Get the packet early, confirm permits, review title exceptions, and line up the right inspectors. If you are considering a shorter or non-contingent offer, weigh the risks carefully with your agent and trusted contractors.
If you want local, hands-on help working through disclosures, timelines, and strategy in Palo Alto, reach out to Suzanne O'Brien for a personal consultation.
FAQs
What is a disclosure package when buying in Palo Alto?
- It is a set of documents the seller provides that detail known property facts, hazards, and legal conditions so you can evaluate risks and costs before you offer.
How do disclosures differ from inspections?
- Disclosures reflect what the seller knows and includes standard forms, while inspections are independent evaluations you order to discover conditions the seller may not know about.
How can I verify permits for a Palo Alto home?
- Ask for copies in the packet, then confirm final inspections with the City of Palo Alto Building Division and cross-check recorded documents with the Santa Clara County Assessor and Recorder.
What if the home was built before 1978?
- You should receive a lead-based paint disclosure and EPA pamphlet, and you can review guidance at the EPA lead-based paint rules page.
Do condos and townhomes include HOA documents?
- Yes, disclosure packets for common-interest properties typically include CC&Rs, bylaws, budgets, minutes, and resale disclosures that outline rules, reserves, assessments, and any pending litigation.
What timing should I expect for contingencies in Palo Alto?
- Standard California inspection windows are often 7 to 17 days, but in Palo Alto’s competitive market you may see shorter periods, which makes early disclosure review essential.