The Real Estate Transfer Disclosure Statement

Purpose and responsibility

California's Real Estate Transfer Disclosure Statement, or TDS, discloses property condition so a buyer can decide whether and on what terms to purchase. It is not a warranty or a substitute for inspections. For a single-family property subject to the disclosure law, the seller must deliver the completed written statement to the prospective buyer. An as-is sale does not waive delivery. Existing duties to disclose material facts and the agent's inspection-related duties remain in place.

Delivery and termination

For an ordinary sale, delivery must occur as soon as practicable before transfer of title. For a real property sales contract, a lease with an option to purchase, or a ground lease coupled with improvements, delivery must occur as soon as practicable before execution of the contract. Here, execution means making or accepting an offer. The seller must indicate compliance on the contract, lease, an attached addendum, or a separate document.

A required disclosure or material amendment delivered after execution of an offer to purchase gives the prospective buyer a termination period: three days after delivery in person; five days after delivery by deposit in the mail; or five days after delivery of an electronic record when the parties have agreed to transact electronically under California's Uniform Electronic Transactions Act. The buyer terminates by delivering written notice to the seller or the seller's agent. The period commences when Sections I and II of the statutory form, plus Section III if the seller is represented by an agent, are completed and delivered to the buyer or buyer's agent. Do not assume an incomplete form starts the clock.

Coordinating the participants

When more than one licensed broker acts in the transaction, the broker who obtained the buyer's offer delivers the disclosure to the buyer unless the seller gives other written delivery instructions. If that broker cannot obtain the document and lacks written assurance that the buyer received it, the broker must advise the buyer in writing of the right to disclosure and maintain a compliance record.

Section I coordinates other disclosures and inspection reports where they cover the same subject matter; Section II contains seller information. An agent may complete the agent's portion by providing all information on the agent's inspection disclosure. These roles do not convert the seller's disclosure into the agent's warranty. Cities and counties may require additional local disclosures. Manufactured-home and mobilehome transfers have separate timing provisions; do not apply the single-family real-property schedule indiscriminately.