The Duty to Disclose Segment 2 : Transfer Disclosure Statements
A TDS is not required in the following transactions:
* Transfers made to a spouse. * Transfer by a fiduciary as part of the settlement of a decedent's estate. * Transfer arising out of default or foreclosure.
If a seller is selling a duplex property to a buyer without providing any repairs, the following statements is most correct
A TDS is required in this transaction.
The following statements is most correct regarding the TDS?
Both the listing and buyer's agent must complete the section on the TDS certifying that based upon the information obtained from the seller as well as the agent's own visual inspection of the property, the agent finds no further disclosure items or the agent notes additional items to disclose.
If a seller receives a third-party expert report verifying that a condition does NOT exist when the seller knows that it does exist, what should the seller do?
Disclose the known condition and give the report to the buyer.
If a seller is unsure how to answer a question on the TDS, what should they do?
Make a reasonable effort to find out.
A TDS is required in ??
Sale of a mobile home.
The purpose and function of the Local Option Real Estate Transfer Disclosure Statement (LORTDS).
Since July 1, 1990, any city or county may elect to require disclosure in addition to those disclosures required on the TDS form. The form of the disclosure is set forth on the Local Option Real Estate Transfer Disclosure Statement (LORETDS) set forth below. The overall type of information that a city or county may require will generally relate to specific information about the neighborhood or community in which the property is located. Unlike the TDS, the LORETDS does not require any disclosure participation on the part of the agents representing either the seller or the buyer in the transaction. The only role the agents have is the delivery of the document to the buyer, as the seller prepared it.
When a TDS is required
The TDS is required even if the property is being sold "as is" or without covenant or warranty. The purpose of the TDS is informational. The TDS is also required on the sale, transfer, lease or exchange of mobile homes as defined in Sections 18007 or 18008 of the Health and Safety Code. Mobile homes, although deemed "personal property," now must be treated as realty for TDS disclosure purposes.
The main parts of the TDS
The form is divided into five sections. The first two sections are to be completed by the seller. Sections 3 and 4 are to be completed by the listing and selling agent involved in the transaction. Section 5 is to be completed by the seller, buyer, and the agents involved in the transaction. The form is set forth below in its entirety. After each section, a discussion of the important elements of that section is given.
The purpose of the Transfer Disclosure Statement
The purpose of the TDS is informational. The TDS is not to be viewed as a warranty of the information provided by the seller. It is to be used as a source of information provided by the seller, which the buyer may rely upon in deciding to purchase. Section 1: In Section 1, the seller must insert the "as of" date. The "as of" date should be the date the report was signed by the seller. However, a seller would also have to inform a buyer of any material changes to the property after the "as of" date.
A TDS is NOT required in which ?? transactions?
Transfer between spouses resulting from a divorce decree
The TDS is NOT required on transfers
When the sale or transfer involves any of the following: * Transfers following a court order, including probate court in the administration of an estate. * Transfers that require a copy of a public report to be furnished to a prospective transferee pursuant to the Subdivided Lands Act. * Transfer by a fiduciary in the course of the administration of decedent's estate, guardianship, conservatorship, or trust Transfers following a writ of execution, by a trustee in bankruptcy, by eminent domain, or resulting from a decree for specific performance. • Transfers arising out of default and/or foreclosure: • Transfers to a mortgagee by a mortgagor or successor in interest or a successor in interest who is in default • Transfers by any foreclosure sale after default in an obligation secured by a mortgage * Transfers by a sale under a power of sale • Transfers under any foreclosure sale under a power of sale after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale • Transfer by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage • Transfers by sale following a decree of foreclosure or by transfer due to a deed in lieu of foreclosure • Transfer from one co-owner to one or more other co-owners • Transfers made to a spouse or to a person or persons in the lineal line of blood relationship of one or more of the transferors • Transfers between spouses resulting from a judgment of divorce or of legal separation or from a property settlement agreement incidental to such a judgment• Transfer by the Controller in the course of administering the Unclaimed Property Law • Transfer under Chapter 7 or Chapter 8 of the Revenue and Taxation Code • Sale of Tax-Deeded property * Transfer or exchanges to or from any governmental agency.
Should each real estate licensee perform their own investigation of the property being sold.
Yes, it is their fiduciary duty to do so and not investigating could be considered negligent.
A LORETDS is used ?? a regular TDS
in addition to . A Local Option Real Estate Transfer Disclosure Statement is used in addition to the required Transfer Disclosure Statement.
The Purpose of the TDS is a
source of information for the buyer's evaluation of a property.
The TDS does NOT need to be given when the transaction involves
the transfer of the family home from a mom to her first-born child.
