Contracts are proof of the deals and make the best results happen. It is essential to have agreements or statements between the parties that help to avoid any commitment issues later. In California, whenever you are in the process of property transfers, buying, and selling, you come across the California Transfer Disclosure Statement. Do you know what California Transfer Disclosure Statement is?

Many people think it is a contract of deal completion, and some refer to it as a legal document. There is no doubt it is a legal document supported by California Law and gives an edge to both parties in a deal. However, it has some definitions and features that one needs to know.

TDS is a disclosure statement protected by Section 1102 of the California Civil Code. The seller makes the statement to the buyer during their contract contingency period. The statement's purpose is to make the buyer aware of the significant issues or defects with the property. As per California Law, the sellers need to make buyers aware of the situation, which leads to a better controlling conditions for everyone.

Why is California Transfer Disclosure Statement important?

When the buyer and seller agree on the same table, they can see the processes and look into things during an agreement or a deal. Then why do they need California Transfer Disclosure Statement? A buyer can visit the property and finalize everything. Still, the before that, the seller must provide proof to the buyer about the property.

It is more like a detail about the property's condition and defines all its aspects for the buyers. Give details about the property conditions, specifications, inspection reports, damages, repairs, and more.

The statement is essential in a contract and needs to be filled in by the seller correctly. Suppose something is wrong in the statement or hidden. In that case, the buyer can sue the seller for non-disclosure of the information. Moreover, the California Transfer Disclosure Statement helps a seller sell a property quickly and smoothly. The importance of the statement in California Law is another reason for the sellers to follow the leads and come up with the statements to provide right in time. If these are neglected, they can be dangerous for the deals.

Even real estate agents emphasize on California Transfer Disclosure Statement before working on any property. It helps to come up with quality leads and increases an agent's confidence in the property and deal simultaneously.

Features of California Transfer Disclosure Statement

What includes in a California Transfer Disclosure Statement? You need to know the things or factors that are essential for the statement. You cannot go blind with the details. Following are the main factors or sections of the statement:

Disclosure Date

The essential factor was the discourse date when the seller completed the disclosure. It includes when the seller finally recorded and signed all the details. Suppose any changes are happening to the property till the completion of the disclosure. In that case, the seller needs to update these changes. Even if it occurs after the completion of the statement, the seller needs to provide an updated copy of the statement within three days.

Disclosures about Occupancy

In this part, the seller will inform or mention whether the seller is currently living in the property. Even if the buyer wants to have the property for personal use, the seller needs to mention whether it's open for the buyer's inspection. The occupancy nature is essential to determine in the statement by the seller as it will enhance the buyer's confidence in the property and boost the interest.

Information by Seller

It is the longest and most important part of the form or statement. It includes every detail about the seller's property information, from the area covered to the structure, interior, fixtures, installations, and much more.

The seller needs to enter all these details in alphabetical order, mention what the system installed, their working conditions, date of installation, repaired or new, in use or not, and all other minor detail. Installations like dishwashers, rain gutters, smoke detectors, and pools are also mentioned here.

Moreover, the location of different installations and the quality of wiring with its voltage and other details are a part of this section.

Damages or Malfunctions

Now it's time for the seller to mention the damages or malfunctions of the property. It is essential to mention even a single crack on the driveway or the flooring. If a switch does not work or there is a broken railing, the seller must mention everything in the statement. From a loose screw to anything significant like a non-working dishwasher should be part of this section.

Facts and Special Questions

This section includes questions about hazardous materials like paints, metals, or other objects on the premises. Even you can mention the shared spaces of the property like garage, lawn, pool, garden, driveways, or any further details.

Inspection Report

This section mentions all the inspection reports and remarks you have had on the property. You have to mention what real estate agents, pest inspection, or property inspection teams mentioned in their writings. It gives you more confidence and a reliance on the buyer.

Bottom line

California Transfer Disclosure Statement is one of the crucial parts of any real estate deal in California. You must step up in filing the best form at the right time. It will save you from massive damage and lets you avoid complications in the future. It can be helpful for you in the long run and leads your deal toward success. Never ignore this statement, and always be truthful about it.