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 combines the seller's disclosure with the visual-inspection disclosures of the listing agent and, when applicable, the buyer's agent. Delivery cannot be waived in a covered transaction, and an as-is clause does not remove it. If the buyer receives the statement after making an offer, the statutory cancellation period is three days after personal delivery or five days after deposit in the mail or delivery by an agreed electronic method.
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
Test the distinction
A relevant question from Practice and Disclosures, selected because its facts or explanation use this concept.
Which transaction requires a Real Estate Transfer Disclosure Statement?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.