California Transfer Disclosure Statement (TDS)
Study California's Transfer Disclosure Statement requirements, learn which transfers are exempt, and master the delivery rules the exam tests.
Educational purposes only: This guide is designed for California real estate exam preparation. It does not constitute legal advice. Consult a licensed professional for an actual transaction.
The Transfer Disclosure Statement is California's statutory form for disclosing information about a covered residential property. Civil Code Article 1.5, beginning with §1102, governs the form, covered transfers, exemptions, delivery, and buyer termination rights.
The TDS reports what the seller and applicable agents know or observe. It is not a warranty that the property is defect-free, and it does not replace other disclosure duties.
The Core Distinction: Disclosure vs. Warranty
Ask whether the facts describe disclosure of known information or a promise about the property's condition.
Transfer Disclosure Statement
A statutory form disclosing information about the property based on the seller's knowledge. It is not a guarantee against defects.
View glossary termAgent Visual Inspection
Civil Code §2079 separately requires applicable licensees to conduct a reasonably competent and diligent visual inspection and disclose material facts that inspection would reveal.
Review Chapter 2Covered Transfers and Major Exemptions
Civil Code §1102 covers specified sales, exchanges, real property sales contracts, purchase options, and improved ground leases involving covered residential property. Section 1102.2 lists exemptions; the exam commonly tests these groups:
Court-ordered transfers
Examples include probate-court sales, foreclosure sales, bankruptcy-trustee transfers, eminent-domain sales, and other covered court orders.
Certain fiduciary transfers
Transfers by a fiduciary administering a trust, guardianship, conservatorship, or estate are generally exempt, subject to the statute’s exception for certain individual trustees.
Co-owner and family transfers
The list includes transfers among co-owners, to a spouse or lineal relative, and certain transfers connected to marital dissolution.
Public-report transfers
Transfers preceded by specified subdivided-lands public reports, or qualifying for the related statutory exception, are exempt from this article.
Government and tax-related transfers
The statute includes transfers to or from governmental entities and specified tax-sale procedures.
Exam tips
- A TDS exemption does not create permission to conceal defects, misrepresent facts, or commit fraud.
- An “as-is” sale does not waive the TDS article; Civil Code §1102 makes a waiver void as against public policy.
Delivery and the Buyer's Right to Terminate
For a sale, §1102.3 requires delivery as soon as practicable before transfer of title. If a required disclosure or material amendment is delivered after execution of the buyer's offer, the buyer may terminate by written notice within the applicable period:
| Delivery method | Termination window |
|---|---|
| In person | 3 days after delivery |
| By mail | 5 days after deposit in the mail |
| Electronic record, when the parties agreed to transact electronically | 5 days after delivery |
Exam tips
- The statutory termination notice must be written.
- Do not confuse a purchase agreement's contractual disclosure deadline with §1102.3's general statutory timing rule.
- A material amendment delivered after the offer triggers the stated window. Section 1102.5 separately qualifies when later events make earlier information inaccurate.
Who Provides the Information?
Seller
Completes the seller portions based on personal knowledge and identifies known conditions required by the statutory form.
Listing agent
Completes the applicable agent inspection disclosure based on a reasonably competent and diligent visual inspection.
Buyer’s or cooperating agent
Also has the applicable §2079 visual-inspection and disclosure duty when acting in the covered transaction.
Exam tips
Exam Distinctions
| Concept | Primary legal basis | Main focus |
|---|---|---|
| Transfer Disclosure Statement | Civil Code Article 1.5 (§1102 et seq.) | Statutory property disclosure form |
| Agent visual inspection | Civil Code §2079 | Observable material facts |
| Natural Hazard Disclosure | Separate statutory scheme | Mapped natural-hazard zones |
Common Exam Traps
- “As-is” is not silence. It may affect repair expectations, but it does not waive statutory or fraud-based disclosure duties.
- Form exemption is not total immunity. Separate duties concerning known material facts can remain.
- A material amendment matters. If delivered after execution of the offer, §1102.3 applies the written termination window.
- Seller and agent duties do not replace each other. The seller's form and the agents' visual-inspection duties have distinct legal foundations.