What is required for an environmental hazard to necessitate disclosure?

An environmental hazard necessitates disclosure when it is known to the seller or agent and has an impact on the property. This criterion is grounded in the principle of materiality, which states that any information that could influence a buyer's decision must be disclosed. If the seller or their agent is aware of an environmental hazard—such as lead paint, mold, radon, or contaminated soil—they are legally obligated to inform potential buyers, as this knowledge could significantly affect the desirability and marketability of the property.

The legal requirement stems from California's law, which emphasizes transparency and protection for buyers in real estate transactions. If the hazard is not disclosed, the seller or agent could be held liable for any resulting damages or issues that arise after the sale.

In this context, simply noting the hazard by the buyer's agent or its physical proximity to the property does not fulfill the requirements for disclosure. Moreover, while legal documentation of such hazards may exist, it is the direct knowledge and impact of the hazard on the property that primarily drives the obligation to disclose.