GLOSSARY — REAL ESTATE TERMS

Transfer Disclosure Statement

The Transfer Disclosure Statement (TDS) is a California-mandated form that a seller must personally complete, disclosing known material facts about a property's condition to the buyer before the sale closes.

What the TDS requires

Under California Civil Code, the seller -- not the agent -- must personally complete the Transfer Disclosure Statement, disclosing known defects and material facts about the property's systems, structure, and history. An agent legally cannot fill this out on the seller's behalf.

What happens if disclosures are inaccurate or incomplete

California gives buyers a rescission right -- typically 3 business days after personal delivery of the TDS, or 5 days after mailing -- and that clock resets if disclosures are materially amended during escrow. Buyers generally have up to three years from discovery, not from closing, to pursue a claim over an undisclosed material defect. Full statutory detail is covered on the California disclosures page.

What the form actually asks

The TDS runs several pages and requires the seller to check specific boxes and add explanations for items like known roof leaks, additions made without permits, foundation issues, and any deaths on the property within the last three years -- it's a checklist, not a narrative document.

WHAT TO DO WHEN YOU RECEIVE THE TDS

Read every line of the TDS yourself rather than relying on a summary
Follow up on anything marked "yes" or left ambiguous
Cross-check the TDS against your own inspection findings
Know your rescission deadline if disclosures are delivered late or amended

Can a seller skip the TDS in an as-is sale?

No -- the TDS requirement applies regardless of as-is terms, and any attempted waiver is void as against public policy in California.

What if I discover an undisclosed defect after closing?

California's statute of limitations for these claims generally runs three years from when the defect was discovered, not from the closing date, so a defect surfacing later can still be actionable.

Does new construction require a TDS?

Requirements differ for new construction sold directly by a builder; ask your agent to confirm which disclosure obligations apply to your specific transaction type.