Selling a House in California? Get to Know the Rigorous Transfer Disclosure Statement
A breakdown of the strict and thorough California Transfer Disclosure Statement (TDS) to make completion of this document as easy as possible for Golden State home sellers.
Californians like their sushi rolled, their ocean waves big, and their real estate disclosures rigorous and handwritten.
That’s why during the process of selling your house in the Golden State you’ll come across the Transfer Disclosure Statement (TDS), California’s official form for disclosing any known issues that could negatively impact a home’s value or pose an unreasonable risk to the buyers’ safety or health.
Most states, in some shape or form, require sellers and their agents to disclose any of these “material defects” about a home upfront in writing (we even put together a list of all 50 states’ mandated disclosure paperwork for super easy access).
But per Civil Code Section 1102, California has some unique and particularly thorough rules for home sellers, all laid out in the Transfer Disclosure, that we’ll go through point by point to make completion as easy as possible.
Step one: Talk to an expert!
Selling your house soon? Connect with a top agent near you to get an expert opinion on how much your house will sell for, what to fix before listing, and the latest local housing market trends.
Filling out the California Transfer Disclosure Statement: All…by…yourself, sellers!
Generally, sellers complete real estate disclosure paperwork after the buyers sign the purchase offer agreement or may even have it filled out prior to listing their home. There’s no official deadline for delivering the form but it’s expected to be provided to the buyers in a “timely fashion.”
Then, the buyers of your house do have a deadline to either move forward or terminate the contract based on any discoveries in the disclosure: they get three days to cancel the deal if you delivered the document in person, and five days if it came by mail.
By law, you must fill out the disclosure form by yourself, in your own handwriting. While your agent is allowed to assist you in understanding what is being asked of you, he or she cannot legally complete the form on your behalf.
“I don’t fill it out for them,” Bakersfield, California-based agent Bart Tipton, founder and team leader for Prestige Properties, said.
“Nor can I give them advice. If they have questions, it’s recommended that they talk to a real estate attorney.”
Indeed, your agent should be familiar with your state’s disclosure requirements and statutes but may be limited in what they can legally advise. When in doubt, always consult a real estate attorney for their advice on whether you should disclose something about your property’s history to cover all your bases and navigate any gray areas with care.
Filling out the forms accurately is essential, Tipton said, since the threat of failing to properly disclose issues can pose a legal problem. “What’s pertinent information to a seller may not be to a buyer and vice versa; that becomes an issue of ‘under-disclosure’ and that’s going to lead to issues down the road,” he said.
Gerard Launay of Berkeley and Sebastopol, California-based Law Office of Gerard D. Launay called the TDS “a pretty complete disclosure,” noting that the onus is on the seller to provide any information he or she has with regard to their property.
“Pretty much the rule is that if you have any notice or knowledge that you have a problem with your house, you have to disclose it,” he said. “Homeowners have the experience of being in their home and they know when things don’t work. The Realtor wouldn’t know that. There are certain things the buyer should know.”
