A Transfer Disclosure Statement (TDS) is required by Law
In California a transfer disclosure statement, also known in the industry as a TDS, is required by law. This statement requires residential property sellers to disclose, in writing for the buyer, details about the property they have on the market. These disclosure obligations apply to nearly all California home sellers, whether selling a single family home or a condo unit. It also applies to mobile homes. This document is one of the seller disclosures that buyers receive during their contract contingency period.
The TDS form must contain specific information about your home such as any improvements on the property, their condition, and any defects or malfunctions of the improvements. Also included is information about all appliances in the home, including which are included in the sale as well their functionality. Additionally, other pertinent information might concern any room additions, damage, or neighborhood noise problems.
Buyer and sellers have a vested interest in full disclosure
Potential home buyers need to know as much as possible about a property in order to evaluate whether they really want to buy it and the resources they need in order to make the purchase. Knowing about any potential repairs or upgrades needed to areas of the home would be a key factor in their decision to purchase a property. For the seller’s part, they may receive a demand from a buyer that alleges nondisclosure, fraud, or concealment.To avoid such complications and accusations, sellers too, need to disclose all relevant issues.
The sellers are not warranting the condition of the property
It is important to realize that, with the transfer disclosure statement, the sellers are not warranting the condition of the property. They are are simply disclosing its condition.
As it is the seller who is providing the information, this form must be completed in the seller’s own handwriting. Online information is available to aid sellers in filing out the required forms.
DiJulio Law Group