Here’s a detailed list of questions real estate agents ask their broker about the Real Estate Transfer Disclosure Statement (TDS) in California, along with clear explanations for each. This is based on the CAR ZipForms versionof the TDS.

Real Estate Transfer Disclosure Statement (TDS) – Questions & Explanations

1. What is the purpose of the TDS?
   The TDS is a mandatory disclosure form in California that requires sellers to disclose known material facts and property conditions to buyers. It protects buyers from hidden defects and limits seller liability if completed honestly.
2. Is the TDS required in every transaction?
   No. It is required for most one-to-four unit residential properties, but there are exemptions such as probate sales, foreclosure sales, bankruptcy sales, and transfers between family members.
3. Who is responsible for filling out the TDS?
   The seller is legally responsible for completing most of the TDS. Agents (both listing and selling) must also conduct a visual inspection of accessible areas of the property and disclose observable defects in their section of the form.
4. What happens if the seller refuses to fill out the TDS?
   If a seller who is not exempt refuses, it can be a breach of contract. The buyer may have the right to cancel the transaction.
5. What types of issues must be disclosed on the TDS?
   Any known material facts that affect the value or desirability of the property, such as structural problems, roof leaks, plumbing/electrical issues, neighborhood nuisances, environmental hazards, past flooding, or unpermitted additions.
6. Does the TDS replace the Agent Visual Inspection Disclosure (AVID)?
   No. The TDS and AVID are separate. The TDS is primarily the seller’s disclosure, while the AVID is the agent’s duty to document visible defects.
7. What if the seller marks “no” but the agent knows the issue exists?
   Agents must disclose anything they know, regardless of what the seller marks on the TDS. Failure to do so can result in liability for nondisclosure.
8. Can the TDS be delivered electronically?
   Yes, if both parties consent to electronic delivery under the E-Sign Act and CAR electronic forms rules.
9. What is the buyer’s right after receiving the TDS?
   The buyer has three days (if delivered in person) or five days (if delivered by mail) to cancel the contract if the TDS reveals new material information they were not previously aware of.
10. What if a defect is discovered after closing but was not disclosed?
    The seller (and potentially the agents) may be held legally liable for nondisclosure, especially if the defect was known but intentionally withheld.
11. Are sellers required to disclose repairs that fixed past issues?
    Yes. Even if repaired, material past issues (such as water intrusion, foundation cracks, or mold) must be disclosed because they affect the property’s history and may recur.
12. What if the property is being sold “as is”?
    “As is” does not eliminate the seller’s duty to disclose. All known defects must still be reported on the TDS.
13. Do trust or estate representatives need to complete the TDS?
    Often they are exempt from filling out the seller’s section of the TDS if they never occupied the property. However, they must still disclose anything they actually know.
14. What if the TDS conflicts with other disclosures?
    The most complete and accurate disclosure prevails. Brokers must ensure consistency between the TDS, AVID, SPQ (Seller Property Questionnaire), and other disclosures.
15. Can an amended TDS be issued?
    Yes. If the seller learns of new information after the original TDS was delivered, an amendment must be provided promptly. The buyer then regains the 3–5 day right to cancel.
16. What is the broker’s role in the TDS process?
    Brokers must ensure the form is delivered, confirm accuracy to the extent of their knowledge, and complete their inspection disclosure. They must also advise the seller on the importance of honesty and completeness.
17. What if the seller checks “unknown” on most questions?
    This can raise red flags. Brokers should advise sellers that “unknown” is acceptable only if they truly lack knowledge. Overuse may appear evasive and lead to buyer mistrust.
18. How detailed should the seller be when describing issues?
    The seller should provide enough detail to accurately describe the condition but avoid speculation. Supporting documentation (like repair invoices) is strongly recommended.
19. Does the TDS apply to new construction?
    Typically, new construction from a builder may be exempt, but builders must provide other statutory disclosures such as the Public Report from the Department of Real Estate.
20. What if a buyer waives the TDS?
    The TDS cannot be waived if it is legally required. Even if waived in writing, the seller and broker are still obligated to disclose known material facts.

✅ This list covers seller obligations, agent duties, buyer rights, exemptions, amendments, and liability issuessurrounding the Real Estate Transfer Disclosure Statement (TDS) in California (ZipForms).