The Basics of California’s Transfer Disclosure Statement

Selling a home in California requires more than thoughtful pricing and strategic marketing. It requires clarity. At the center of that clarity is the Transfer Disclosure Statement (TDS), a legally required document designed to ensure buyers understand the condition of a property before completing their purchase. In today’s market, transparency is compliance and confidence.

What Is a Transfer Disclosure Statement?

The Transfer Disclosure Statement is required under California Civil Code §1102 for most residential property sales of one-to-four units.

It is a written disclosure completed by the seller that outlines:

• The condition of the property and its systems

• Known defects or malfunctions

• Significant repairs or alterations

• Environmental or neighborhood factors that may affect value or desirability

The TDS is not a warranty. It is a statement of what the seller actually knows about the property at the time of completion.

Who Must Provide It?

In most traditional residential sales, the seller is required to complete and deliver the TDS to the buyer.

Common exemptions may include:

• Probate or estate sales

• Foreclosure-related transfers

• Certain trustee or REO transactions

• Transfers between co-owners

• Court-ordered transfers

Even when exemptions apply, many sellers still choose to provide disclosures voluntarily to reduce risk and strengthen transparency.

When Is It Delivered?

The law requires delivery as soon as practicable before transfer of title.

If the TDS is delivered after the buyer signs the purchase agreement, the buyer has:

• 3 days to rescind if delivered in person

• 5 days to rescind if delivered by mail

In modern transactions, disclosures are often delivered electronically, with timestamped tracking for compliance and record integrity.

What Does the Seller Disclose?

The TDS requires sellers to disclose known information about:

Property Systems & Structure

• Roof, foundation, and structural components

• Plumbing, electrical, heating, and air systems

• Built-in appliances

• Drainage or water intrusion issues

Repairs & Alterations

• Past repairs or renovations

• Additions or modifications

• Permits (if known)

Environmental Conditions

• Mold, asbestos, or other hazardous materials

• Lead-based paint (for homes built before 1978)

• Natural hazard exposure (often provided through a separate Natural Hazard Disclosure report)

Neighborhood or External Factors

• Noise issues

• Boundary disputes

• Easements or shared access concerns

• HOA obligations (if applicable)

If you don’t know something, you don’t speculate.
You disclose what you know — and allow inspections to do their work.

Agent Responsibilities

California law also requires real estate agents to conduct a visual inspection of the property and disclose observable material facts. This adds an additional layer of protection for both buyer and seller — reinforcing the principle that transparency reduces conflict and builds trust.

Can a TDS Be Amended?

Yes. If a seller becomes aware of new material information after delivering the TDS, it must be updated promptly. Failure to amend disclosures can increase legal exposure. In 2026, most brokerages track disclosure timelines digitally, ensuring revisions are recorded and delivered with precision.

Why This Matters More Than Ever

California disclosure law is designed to prevent disputes before they begin.

In an era where transactions are faster and documentation is digital, accuracy matters even more. A carefully completed TDS:

• Reduces liability

• Builds buyer confidence

• Prevents last-minute surprises

• Supports smoother closings

Transparency is part of the strategy.

How We Guide Sellers Through the Process

Completing a Transfer Disclosure Statement can feel technical. It shouldn’t feel overwhelming.

We guide sellers step-by-step, combining experience with structured digital systems that:

• Organize documentation clearly

• Track compliance deadlines

• Ensure nothing is overlooked

• Provide calm clarity in what can feel like a complex process

Selling a home is both emotional and procedural. The TDS sits at that intersection — where honesty meets strategy. Handled properly, it becomes part of a confident, well-managed sale.

This article is intended for informational purposes only and does not constitute legal advice. For legal interpretation of disclosure requirements, consult a qualified California real estate attorney.

Call The Stephen Haw Group at 310.503.9886 or email [email protected] for other local area tips and recommendations.