Inspection & Disclosure Process

Once you're under contract, your purchase agreement gives you the right to inspect the property thoroughly. These inspections won't guarantee a home is free of every possible issue, but they give you the information you need to move forward with confidence — or to renegotiate, request repairs, or in some cases walk away, depending on what your contract allows. Inspections are meant to inform your decision, not to be used as leverage to chip away at an already fair price.

Structural Pest Control Inspection (“Termite Report”)

Conducted by a licensed pest control inspector, this report identifies termite activity, wood-destroying organisms, and fungal damage (often called dry rot), which typically results from excess moisture. Reports are broken into two categories:

• Section 1 Conditions: Active issues currently causing damage. These typically must be corrected before a lender will fund your loan.
• Section 2 Conditions: Issues that aren't yet causing damage but are likely to if left unaddressed — for example, a slow plumbing leak that hasn't yet caused decay.

Your purchase contract specifies who pays for the inspection and any required corrections. This is negotiable, and we'll advise you on what's customary in your specific transaction.

General Home Inspection

This is a comprehensive visual assessment of the property's condition — covering exterior siding and paint, flooring, appliances, the water heater, furnace, electrical systems, plumbing, and other visible components. While home inspectors aren't currently required to hold a license in California, most have backgrounds as general contractors or trades professionals. If the inspector identifies signs of more serious structural concerns, they may recommend a follow-up Structural Engineer's Report. The buyer typically pays for the general home inspection.

Natural Hazard Disclosure (NHD) Report

California law requires sellers to disclose whether a property falls within one of six state-mapped natural hazard zones. This disclosure must come from an independent third party — not the seller or their agent — to ensure the information is accurate and unbiased. The six categories are:

• Special Flood Hazard Area (as mapped by FEMA)
• Area of Potential Flooding (in the event of dam failure)
• Very High Fire Hazard Severity Zone
• State Responsibility Area (wildfire risk under CAL FIRE jurisdiction)
• Earthquake Fault Zone (Alquist-Priolo zones, mapping known active fault traces)
• Seismic Hazard Zone (areas at risk for liquefaction or earthquake-triggered landslides)

Given how much of the San Fernando and Conejo Valleys sit near mapped fault lines and seasonal wildfire risk areas, this is a disclosure worth reading closely rather than skimming past. We'll walk through your specific NHD report with you and explain what each finding actually means for your insurance costs and long-term ownership.

Preliminary Title Report

This report reveals whether there are any liens, easements, or title defects attached to the property that need to be resolved before you can take clear ownership. Your escrow and title company will work through any issues identified here well before your closing date.

HOA Documents (CC&Rs)

If the property is part of a homeowners association, you're entitled to review the full set of governing documents — covenants, conditions, and restrictions — before removing contingencies. These documents outline rules, fees, reserve funding, and any pending special assessments that could affect your ownership experience.