What Is a Transfer Disclosure Statement (TDS) in California?

A Transfer Disclosure Statement (TDS) is a legally required form in California that sellers must complete to disclose known issues about their property. It ensures buyers receive a full and honest picture of a home’s condition before closing.

📄 What the Transfer Disclosure Statement Includes

California’s TDS covers four major areas of property condition. Sellers must disclose all known defects or issues — even those not visible to the buyer or inspector.

  • Systems & Components: Roof, foundation, plumbing, electrical, HVAC, appliances, windows, and structure.
  • Known Defects: Leaks, cracks, mold, pest issues, water damage, or structural weaknesses.
  • Environmental Hazards: Asbestos, radon, lead-based paint, flood history, earthquake issues.
  • External Factors: Noise problems, neighbor disputes, HOA issues, or nearby nuisances.

📋 TDS vs SPQ (Seller Property Questionnaire)

Many California sellers must complete both forms. The TDS is required by law, while the SPQ is widely used in California real estate contracts to provide deeper insight into repairs, improvements, or past issues.

  • TDS: Mandatory disclosure of property condition and defects.
  • SPQ: Additional details about repairs, insurance claims, permits, and upgrades.

✔️ Who Must Provide a TDS in California?

Almost all California home sellers must complete a TDS, including those selling:

  • Single-family homes
  • Condos and townhomes
  • 1–4 unit residential properties

FSBO sellers are not exempt — the law applies to everyone.

🚫 Limited Exemptions

Some sales are exempt from the TDS form, such as:

  • Foreclosures / REO sales
  • Probate and estate administrators
  • Bankruptcy trustee sales

However, exempt sellers must still disclose all known defects.

📢 The TDS for FSBO Sellers in California

Even when selling For Sale By Owner, you must provide a TDS to buyers. Completing the form accurately protects you from legal issues and helps build buyer trust.

The TDS works alongside other California disclosures such as the NHD report, SPQ, earthquake disclosures, water heater bracing certification, and more.

For a full overview, see:
Seller Disclosures in Real Estate Explained

📚 Learn more in our Real Estate Glossary.