Transfer Disclosure Statement (TDS)

Understanding the Transfer Disclosure Statement (TDS) in California Real Estate

The Transfer Disclosure Statement (TDS) is a vital document in California real estate transactions. It provides potential buyers with critical information about the condition of the property they are considering. This guide will explain what the TDS is, why it’s essential, and how to navigate it effectively.

What Is the Transfer Disclosure Statement (TDS)?

The TDS is a legally required document in California for most residential property sales. It ensures transparency between the seller and buyer by disclosing known issues, defects, or other property-related details.

Under California Civil Code Section 1102, sellers must complete this form in good faith, providing honest and accurate information.

What Does the TDS Include?

The TDS covers the following areas:

1. Structural Details:
   • Foundation, walls, roof, and other major structural components.
   • Information about past repairs or modifications.
2. Appliances and Systems:
   • Condition of plumbing, electrical systems, heating, air conditioning, and installed appliances.
3. Environmental Factors:
   • Issues such as noise, pollution, or nearby hazardous materials.
4. Legal Disclosures:
   • Easements, zoning violations, or homeowners association (HOA) details.
   • Compliance with building codes and regulations.

When Is the TDS Required?

The TDS is required for the sale of:

• Single-family homes
• Multi-family homes up to four units
• Certain mobile homes

However, some transactions are exempt, such as sales between co-owners, foreclosures, or transfers to family members.

Why Is the TDS Important?

1. Protects Buyers:
   Buyers gain insight into the property’s condition, allowing them to make informed decisions or negotiate repairs.
2. Protects Sellers:
   By disclosing known issues, sellers reduce the risk of future disputes or legal liability.
3. Legal Compliance:
   Failure to provide a TDS when required can lead to fines, penalties, or even the cancellation of the sale.

How to Complete the TDS

1. Provide Accurate Information: Be thorough and truthful when filling out the form. Misrepresentation can result in legal consequences.
2. Work with Your Real Estate Agent: A CENTURY 21 Jordan-Link & Co. agent can guide you through the process to ensure compliance.
3. Disclose, Don’t Fix: The TDS is about disclosure, not repair. Listing known issues doesn’t mean you must fix them—unless negotiated during the sale.

FAQ Section

1. What happens if a seller fails to provide a TDS?
The buyer may cancel the sale or sue for damages if undisclosed issues are discovered later.

2. Can the buyer negotiate repairs based on the TDS?
Yes, buyers often use the TDS to negotiate repairs, credits, or a reduced sale price.

3. Are there exemptions to the TDS requirement?
Yes, exemptions include transfers to family members, foreclosures, and new constructions not previously occupied.

Why Choose CENTURY 21 Jordan-Link & Co.?

With five offices across Tulare, Kings, Kern, Fresno, and San Luis Obispo Counties, CENTURY 21 Jordan-Link & Co. ensures smooth and transparent real estate transactions. Our agents provide expert guidance on navigating disclosures and legal requirements.

Call to Action

Have questions about the Transfer Disclosure Statement? Contact CENTURY 21 Jordan-Link & Co. today for personalized assistance. Visit https://jordanlink.com or call us to connect with a local expert!