Practice and Disclosures, 25% of the examination
Transfer Disclosure Statement (TDS)
The statutory form on which a seller of one to four residential units discloses the property's known condition.
The TDS has three parts: the seller's own disclosure, the listing agent's visual inspection, and the cooperating agent's visual inspection. Delivery cannot be waived in a covered transaction, and an as-is clause does not remove it. If the buyer receives it after signing the contract, they may terminate in writing within three days for personal delivery, or five days for delivery by mail.
What this is confused with
The exam rarely asks for a definition. It describes a situation and offers two terms that both sound plausible.
Natural Hazard Disclosure Statement
The NHD reports six mapped statutory zones. The TDS reports the condition of the property itself.
See also
See it in a question
One question from Practice and Disclosures, so the term lands in the context the exam uses it in.
A salesperson receives a $5,000 good-faith deposit check made payable to the seller. What must happen to it?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.