When I work with buyers, one of the first things we dive into is the Transfer Disclosure Statement. Here in the East Bay, it’s common—though not required—for sellers to provide these disclosures before potential buyers make an offer. There are a bunch of state, county, and local disclosures, but a few key documents are filled out by hand by the seller. These help you get a sense of what the seller knows about the home, so it’s super important to read through all of them when you’re considering a purchase.
What is a Transfer Disclosure Statement (TDS)?
The TDS is one of a few documents filled out by the seller that describes the property’s condition. It includes insights that only someone who has lived there would know. This document is required for the sale of one to four residential units, along with some other situations. If you have a question about your situation, ask your real estate agent.
Who fills out the TDS?
The TDS is completed by the seller. It can be filled out by hand or electronically, but in 99.9% of situations it’s done by the seller. The TDS asks the seller to detail any physical defects inside and outside the home, as well as information about the surrounding area. There are situations when a seller may be exempt, but that’s a different story. Always check with your real estate agent to see what applies to your situation.
Why is a TDS important for buyers?
This document is a valuable resource for buyers. It provides a glimpse into the property’s condition from the seller’s perspective. By reviewing it, you can get a sense of the home’s “health”—whether you might need to budget for maintenance or repairs, or if you can relax knowing that the roof is in great shape and won’t need replacing anytime soon.
A warm farewell
I recently reviewed a disclosure package that really stood out. The seller had clearly put a lot of thought and care into the disclosures. You could sense that she had lived there for a long time and truly understood every little detail of her home. From a small crack in the driveway to the lively atmosphere during Halloween, she shared it all. When it came to noise, she simply wrote, “The happy sounds of neighbors.” It was clear she loved her home and wanted to share not just the facts, but also the warmth of the neighborhood. What could be a dry, factual document turned out to be a lovely insight into a home that was very well-loved.
If you are not currently working with a real estate agent and have questions, please reach out to me. Liz Rush Realtor® DRE #01445284 can be reached at [email protected]. Her website is LizRush.com.
