California Transfer Disclosure Statement (TDS) Explained

The California Transfer Disclosure Statement (TDS) is the state form, set out in Civil Code section 1102.6, on which a seller tells the buyer what they know about the home's condition. The seller lists the features the home has and flags any that do not work, reports known defects in the structure and systems, and answers 16 yes-or-no questions about conditions such as unpermitted work, fill, soil and drainage problems, neighborhood noise, HOA matters and lawsuits.

It applies to most sales of homes with one to four units, condos included. It is due as soon as practicable before title transfers, and if it arrives after the buyer's offer, the buyer has 3 days after personal delivery, or 5 days after mailed or agreed electronic delivery, to cancel in writing. Selling as-is does not remove it.

The TDS is one part of California's broader real estate disclosure rules; our guide to what California sellers must disclose covers the rest. This is general information, not legal advice; for your own sale, talk with a California real estate attorney.

Who must give a Transfer Disclosure Statement

Civil Code section 1102 covers sales, exchanges, installment sale contracts, options to purchase and ground leases with improvements of "single-family residential property." Despite the name, that means one to four dwelling units, or a condominium, planned development or stock cooperative unit. Any waiver is void.

Common exemptions under section 1102.2:

New homes sold under a Department of Real Estate public report, which our new construction guide explains.
Court-ordered sales, such as probate and bankruptcy trustee sales.
Foreclosures, deeds in lieu of foreclosure and resales by a lender that took the home back.
Sales by a fiduciary administering a trust, estate, guardianship or conservatorship, except an individual trustee of a revocable trust who is a former owner or lived in the home within the past year. Selling your own home out of your living trust still requires a TDS.
Transfers between co-owners, to a spouse or to a relative in the seller's line of consanguinity, such as a child, and between spouses in a divorce or legal separation.
Transfers to or from a government entity.

Exempt does not mean silent. Section 1102.1 preserves the existing duty to disclose facts that materially affect value and desirability, and the agents' inspection duty under Civil Code section 2079 still applies. Our guide to inheriting a home in California covers probate and trust sales.

When the TDS is due and the buyer's right to cancel

Section 1102.3 sets the outer limit: as soon as practicable before transfer of title, or before the contract is made for an installment sale, lease-option or ground lease. The purchase agreement usually sets a firmer deadline counted from acceptance, as our escrow timeline shows.

If the TDS, or a material amendment to it, reaches the buyer after they make an offer, the buyer can terminate by written notice to the seller or seller's agent within 3 days after delivery in person, or 5 days after delivery by mail or by agreed electronic delivery. The clock starts only when Sections I and II, and Section III if the seller has an agent, are completed and delivered. That is why it pays to complete the TDS before the listing goes live.

What each section of the TDS asks

The form opens with the property description and the date it speaks as of, and states that it is "not a warranty of any kind" and not a substitute for inspections.

Section I: Coordination with other disclosure forms

The seller lists substituted disclosures, such as the Natural Hazard Disclosure report and inspection reports, that cover the same subjects.

Section II-A: The property items checklist

The seller checks the items the home has, from appliances, heating and cooling, smoke and carbon monoxide devices and pool barriers to the water heater, window security bars and the roof's type and approximate age. The seller states whether they occupy the home, then says whether any item is not in operating condition. A footnote warns that some items, and the plumbing fixtures, may not meet current standards.

Section II-B: Known defects in the structure and systems

The seller says whether they know of significant defects or malfunctions in parts such as walls, floors, roofs, windows, the foundation, slabs, driveways, electrical, plumbing and sewer or septic systems, and explains any that are checked.

Section II-C: The 16 awareness questions

The seller answers yes or no to awareness of:

Environmental hazards such as asbestos, radon, lead-based paint, mold, fuel or chemical tanks, or contaminated soil or water.
Features shared with neighbors, such as walls, fences and driveways.
Encroachments, easements or similar matters.
Additions, structural changes or repairs made without necessary permits.
Additions, alterations or repairs not in compliance with building codes.
Fill (compacted or otherwise) on the property or any part of it.
Settling, slippage, sliding or other soil problems.
Flooding, drainage or grading problems.
Major damage from fire, earthquake, floods or landslides.
Zoning violations, nonconforming uses or setback violations.
Neighborhood noise problems or other nuisances.
CC&Rs or other deed restrictions or obligations.
A homeowners association with authority over the property.
Common areas co-owned with others.
Notices of abatement or citations against the property.
Lawsuits or construction-defect claims by or against the seller affecting the property or its common areas.

Every yes needs an explanation.

What "fill (compacted or otherwise)" means

Fill is soil or rock placed by people. The California Building Code's grading appendix defines it as earth materials deposited by artificial means, and compaction as densifying fill by mechanical means. Hillside lots are often built on graded pads that include fill, and it also appears where a yard was raised or an old pool was filled in. Poorly compacted fill can settle, which question 7 covers separately.

Answer from what you know, such as a soils report, a grading permit, a past repair or your own work. "Compacted or otherwise" means the answer is yes either way. If you have no information, say so rather than guess.

Section II-D: Smoke alarm and water heater certifications

The seller certifies that by close of escrow the home will have operable smoke detectors (Health and Safety Code section 13113.8) and braced, anchored or strapped water heaters (section 19211), then signs that the answers are true to the best of their knowledge.

Sections III and IV: The agents' visual inspection

The seller's agent (Section III) and the buyer's agent, if different (Section IV), each report what a reasonably competent and diligent visual inspection of the accessible areas revealed, as Civil Code section 2079 requires. Under section 2079.3, that inspection excludes areas that are reasonably and normally inaccessible, areas off the property, and public records and permits, and for a condo it covers the unit when the required HOA documents are provided.

The buyer keeps a duty of reasonable care (section 2079.5), and claims against an agent under these rules must be filed within two years of possession (section 2079.4).

Section V: Acknowledgment

Both sides acknowledge receipt, and the form closes by noting the buyer's right to rescind for at least three days after a late delivery.

Is there a new TDS form for 2027?

No. The form in section 1102.6 was last amended by Senate Bill 1371 (Statutes of 2020, chapter 370), effective January 1, 2021, and no bill of the 2025-2026 legislative session amends it, so the same form carries into 2027. Separate written disclosures took effect January 1, 2026: an electrical inspection advisory, known restrictions on replacing gas appliances, and known tobacco or vaping residue.

What "as is" does and does not change

As-is means the seller is not promising repairs. It does not cancel the TDS: section 1102.1 states the Legislature's intent that delivery may not be waived in an as-is sale, and section 1102 voids any waiver. Section 1102.8 also preserves every other disclosure duty, including the duty to avoid fraud. Our guide to selling a house as-is in Orange County compares the options.

When the TDS is late, wrong or out of date

Late. The buyer gets the 3- or 5-day termination right.
Wrong. The sale is not invalidated for that reason alone, but anyone who willfully or negligently violates the rules is liable for the buyer's actual damages (section 1102.13). Disclosures must be made in good faith, meaning honesty in fact (section 1102.7).
An expert's error. Sellers and agents are not liable for errors outside their personal knowledge that came from a public agency or a licensed expert, if they used ordinary care (section 1102.4).
Overtaken by events. Later changes are not a violation, and a reasonable, clearly labeled approximation may stand in for an unknown item (section 1102.5). Amend in writing; a material amendment gives the buyer a new 3- or 5-day window.

Tips for sellers filling out the TDS

Answer it yourself. The form states that its answers are the seller's representations, not the agent's.
Leave nothing blank, and do not guess. Use the explanation lines, and if you are unsure whether work was permitted, say so.
Think back over your ownership. Past leaks, a filled-in pool, a fence dispute with a neighbor and city citations can all bear on your answers.
Attach the paper. Permits, invoices and reports support your answers; list reports in Section I.
Amend promptly if something changes or you remember something.

Tips for buyers reading the TDS

Check that it is complete and dated, since the cancellation clock waits for it.
Follow up on every yes by asking for the permits and reports behind it.
Compare it with your [home inspection](/home-inspection-california-buyers-repair-requests/). A yes on fill or settling is a reason to ask for grading records or call a geotechnical engineer.
Note whether the seller lives there. A landlord who never occupied the home may know less.
Read a no carefully. It means the seller is not aware of a problem, not that none exists.

How Remark Homes helps with the TDS

We walk sellers through the TDS line by line before listing, gather permits and reports for Section I and complete the listing agent's Section III inspection, so buyers can review the form before they offer. For buyers, we read the TDS with the inspection report. Learn more about our home selling services.

Frequently asked questions

What does the Transfer Disclosure Statement require sellers to disclose?

What the seller knows about the home's condition: which listed features it has and whether they work, known defects, and answers on 16 conditions, from unpermitted work and fill to drainage and lawsuits.

Do I need a TDS to sell a condo or a home in my living trust?

Usually yes. Condo units are covered, and the trust exemption does not apply to a revocable trust's trustee who is a former owner or lived there within the past year.

What does "fill (compacted or otherwise)" mean on the TDS?

Soil or rock placed on the lot by people, such as a graded pad or a filled-in pool. Answer yes if you know of any, compacted or not, and explain.

How long does a buyer have to cancel after a late TDS?

Three days after delivery in person, or 5 days after delivery by mail or agreed electronic delivery. A late material amendment carries the same right.

California Transfer Disclosure Statement (TDS), Section by Section