Updated: July 2011
Real Estate Transfer Disclosure Statement
One of the most important disclosure documents that you will receive during the purchase of real estate is the Transfer Disclosure Statement (TDS). This is a disclosure required by California State Law with a statement from the Seller to a Buyer regarding what is included in the subject property and what the Seller knows regarding the present condition.
As discussed in previous posts regarding the Residential Purchase Agreement, property purchased in California is assumed to be in present condition. The Buyer will have a period of time to do their due diligence to determine the condition of the property, usually 17 days. The Homeowner is required to give various disclosures including the Real Estate Transfer Disclosure Statement, which is often used in Court with non-disclosure disputes.
The Real Estate Transfer Disclosure Statement is a three page document. The first page includes the date of the disclosure, if the Seller lives in the home or not, and what items are in the subject property. This is a check off list and includes items like Pool, Oven, Spa, and number of garage remotes.
The second page of the Real Estate Transfer Disclosure Statement asks the homeowner if they are aware of any significant defects or malfunctions. These would include roofs, windows, and foundation. The Seller may attach additional sheets if they need to explain issues. There are also 16 check mark items dealing with other items the Buyer would consider in their purchase.
The third and final page deals with Agent Disclosures and signatures of all parties involved. State law requires both the Listing Agent and Selling Agent (Buyer’s Agent) to note any “red flags”. The disclosure is based on a reasonable, competent and diligent visual inspection of the accessible areas of the property.
California State Civil Code provides a Buyer with the right to rescind a purchase contract for at least three days after the delivery of the Real Estate Transfer Disclosure Statement if it is delivered after the signing of an offer to purchase.
While the Real Estate Transfer Disclosure Statement is a very useful disclosure document that should be reviewed in full, I will always ask the Seller to provide a Seller Property Questionnaire (SPQ). This document is not required by law but can be required by Contract. It is an excellent document that picks up and expands what the Real Estate Transfer Disclosure Statement offers. It is very complete and ask many questions of the Seller of non-disclosure items that are most common. You can read about the Seller Property Questionnaire here.
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This sounds very similar to the SPD or Seller’s Property Disclosure document used in PA real estate transactions. The Seller is required to complete this 5 page disclosure of any known material defects of the subject property. It is required in residential real estate transactions with some exceptions including foreclosures, court order, new construction among others.
This sounds very similar to the SPD or Seller’s Property Disclosure document used in PA real estate transactions. The Seller is required to complete this 5 page disclosure of any known material defects of the subject property. It is required in residential real estate transactions with some exceptions including foreclosures, court order, new construction among others.
That’s all we need…….more paperwork…hehehehehehhe
That’s all we need…….more paperwork…hehehehehehhe
Hi Conrad, I agree that we throw so much paperwork at Clients it sometimes defeats the purpose. Of course I make sure the my Clients pay particular attention to both the Transfer Disclosure Statement and the Seller Property Questionnaire. Both of these disclosures are very important statements from the Seller about what they know about the home and what might be wrong. Thanks for your comment.
Hi Conrad, I agree that we throw so much paperwork at Clients it sometimes defeats the purpose. Of course I make sure the my Clients pay particular attention to both the Transfer Disclosure Statement and the Seller Property Questionnaire. Both of these disclosures are very important statements from the Seller about what they know about the home and what might be wrong. Thanks for your comment.
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