California's Transfer Disclosure Statement: What Every Los Angeles Seller Needs to Know Before They Sign
California's TDS requires LA sellers to disclose all known defects, system conditions, and material facts before close. Here's what you must include and why it matters.
What is the Transfer Disclosure Statement in California, and what must LA sellers disclose?
The Transfer Disclosure Statement (TDS) is a California-mandated written disclosure that sellers of residential properties with one to four units must complete and deliver to buyers before the sale closes. Sellers must disclose all known material defects, the condition of major systems, and any other facts that could affect the property's value or the buyer's decision. The TDS is not a warranty and does not replace an inspection, but failing to complete it honestly creates significant legal exposure.
By Paul Blair | June 27, 2026
One of the first real paperwork questions I get from sellers, often within hours of signing a listing agreement, is about the TDS.
"What exactly am I supposed to fill in?" Or: "Do I have to disclose that the roof leaked three years ago and we fixed it?"
The answer to both is more nuanced than a one-liner. California's Transfer Disclosure Statement is a detailed document, and the way you complete it matters more than most sellers realize. Getting it wrong, or leaving it incomplete, is one of the more reliable ways to create legal problems after close.
Here's what you need to know if you're selling a home in Los Angeles.
What the TDS Is and Where It Comes From
The Transfer Disclosure Statement is required under California Civil Code Sections 1102 through 1102.14. Any seller of residential real property with one to four units must deliver it to the buyer as soon as practicable before the transfer of title.
In practice, that means you'll complete the TDS early in escrow, usually within the first few days after the buyer's offer is accepted. Most California Association of Realtors contracts set a specific disclosure delivery deadline, and buyers have three days after receiving the TDS to review it and, if they find something unexpected, reconsider.
The form itself is a CAR (California Association of Realtors) standard document. It covers three distinct areas:
Part I: Agent observations (completed by your listing agent after walking through the home)
Part II: Seller's knowledge of the property (completed by you)
Part III: The agent's independent inspection findings (completed by whoever physically inspects and represents the property)
Part II is where sellers often have questions.
What You're Required to Disclose
The TDS asks you about every system and feature in your home: roof type and approximate age, appliances, HVAC, plumbing, electrical, pool, sprinklers, and more. For each item, you note whether it's present and whether you're aware of any defects.
California uses a known defects standard. You're required to disclose what you know. You're not required to investigate things you genuinely don't know about, and the TDS is not a warranty that everything works. But the law requires you to act in good faith, which means you can't choose not to know.
A few areas where sellers get tripped up:
Past repairs and water damage. If your roof leaked four years ago and you had it repaired, you need to disclose that. If there was water intrusion and you replaced drywall, disclose it. Completed repairs don't disappear from disclosure obligations. Buyers want to know the history of the property, and concealing past problems is one of the most common sources of post-close disputes.
Shared driveways, easements, and boundary issues. If you share a driveway with a neighbor under an informal arrangement or there's an access easement you've never documented properly, that belongs on the TDS.
HOA disputes or litigation. If your property is in an HOA and there's ongoing litigation or a dispute between the HOA and owners, that's material information.
Neighborhood nuisances. Rush-hour traffic on a canyon road, noise from a nearby commercial property, flight patterns over a Westside neighborhood. These aren't always obvious to someone visiting on a Tuesday afternoon. California courts have found sellers liable for failing to disclose conditions they knew about that a buyer couldn't reasonably discover on their own.
Death Disclosure and the Three-Year Rule
California Civil Code Section 1710.2 requires sellers to disclose any death that occurred on the property within the three years prior to the sale, if the buyer asks. There's no obligation to volunteer this information unprompted, but you must answer honestly if a buyer asks directly.
The one exception: deaths that occurred more than three years ago may not be disclosed if the seller chooses not to. And deaths related to HIV or AIDS are explicitly excluded from disclosure requirements regardless of timing.
For luxury properties in Hollywood Hills, Beverly Hills, and Bel Air, this occasionally comes up. The rule is the rule, and your listing agent should guide you through how to handle the question if it arises.
The Seller Property Questionnaire Rides Alongside
The TDS is almost always accompanied by the Seller Property Questionnaire (SPQ), a companion CAR form that asks for more specific detail than the TDS can capture.
Where the TDS might ask whether you're aware of any plumbing defects, the SPQ drills deeper: unpermitted work, drainage and grading problems, zoning violations, prior pest infestations, and more. Together, the TDS and SPQ are the core of a California seller's disclosure package.
In Los Angeles, you'll also typically deliver:
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The Natural Hazard Disclosure (NHD), which identifies whether the property falls in a fire hazard severity zone, earthquake fault zone, flood zone, or other designated hazard area. For more on this, see Natural Hazard Disclosure in Los Angeles: What Sellers Need to Know Before They List.
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The Residential Property Record (9A report) from the City of Los Angeles, which shows permit history, code compliance, and whether any violations are on file.
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The LADWP Certificate of Compliance for the mandatory retrofit items. For the full breakdown, see What Los Angeles Home Sellers Must Do Before Escrow Can Close.
The disclosure package in an LA transaction can feel substantial. That's because California has some of the most thorough disclosure requirements in the country, which is genuinely good for buyers and, counterintuitively, good for sellers too.
Why Honest Disclosure Protects You
The instinct to minimize disclosures is understandable. Sellers worry that disclosing a past problem will scare off buyers or drive down their price. In practice, the opposite tends to be true.
Buyers who discover an undisclosed problem during inspection, or after close, are far more upset than buyers who knew about it upfront. A disclosure that explains a past roof repair and shows the contractor invoice typically does less damage than a buyer discovering water stains behind a bookcase on move-in day.
And legally, the exposure for non-disclosure is real. A buyer who can show you knew about a material defect and failed to disclose it can sue for damages, rescind the contract in some cases, and in extreme situations, seek punitive damages for fraud. California courts take disclosure obligations seriously.
Disclosing known problems and presenting the full picture also gives you more control. If there's something you know about your property that a buyer will find eventually, you're better off shaping the narrative than letting them piece it together during due diligence.
What Happens If You Receive New Information During Escrow
If something material comes to your attention after you've already delivered the TDS, you're required to amend and re-deliver it. This isn't optional.
Common triggers: your inspection report reveals something you weren't aware of, a neighbor mentions a shared drainage issue you hadn't considered, or the buyer's inspector finds evidence of prior water damage that prompts you to remember a basement flooding incident ten years ago.
When the TDS is amended, the buyer's review period typically restarts. That's worth knowing before you're deep in escrow and trying to manage a timeline.
A Note on Agent Obligations
Your listing agent has their own disclosure duties under California law, independent of yours. They're required to complete Part I of the TDS based on a reasonably competent visual inspection of the property, and they must disclose any material facts they observe or become aware of through the transaction.
This is relevant because even if you omit something from your portion of the TDS, your agent may have an independent obligation to disclose it. And if they don't, both of you may face exposure. The disclosures work together, and the listing agent's role in walking through the property carefully before the TDS is finalized matters more than many sellers realize.
Putting the TDS Together for Your Sale
Every property is different. The questions that matter most on your TDS depend on your home's age, location, and history. A 1950s hillside home in Laurel Canyon has different disclosure considerations than a 2019 build in Studio City.
What doesn't change: the TDS is a legal document, it stays with the transaction record, and buyers and their attorneys have full access to it. Completing it carefully, with your agent's guidance, is one of the more important things you'll do before your home goes on the market.
If you want to walk through your specific situation before you list, reach out. I help sellers across the Hollywood Hills, Beverly Hills, Bel Air, and the Westside think through disclosures, pricing, and timing before we go public. Get in touch here, or start with a home value estimate to understand where your property stands in today's market.
Frequently Asked Questions
Do I have to disclose repairs that were done before I owned the home?
You can only disclose what you know. If the prior owner made repairs that you have no knowledge of, you're not required to guess or investigate. But if you're aware of prior repairs, whether from inspection reports you received when you bought the home, neighbor conversations, or contractor records, that information should be disclosed.
What happens if a buyer finds an undisclosed problem after closing?
If a buyer can show that you knew about a material defect and didn't disclose it, they can pursue damages through civil litigation. In California, that can include the cost of the repair, loss of value, and in fraud cases, additional damages. The TDS is one of the key pieces of evidence in those disputes.
Can a buyer cancel a contract after receiving the TDS?
Yes, within a specific window. California law gives buyers a review period after receiving disclosure documents. If the TDS reveals something unexpected and the buyer objects, they can cancel during that period without penalty. This is why disclosures are delivered early in the transaction rather than at the last moment.
Is the TDS required for all types of property sales in California?
The TDS applies to residential properties with one to four units. It does not apply to commercial sales, new construction sold by the developer, probate sales, or some trust and REO transactions. If you're in any of those categories, your disclosure obligations are different.
What's the difference between the TDS and a home inspection report?
The TDS reflects what you, as the seller, know about the property. A home inspection report reflects what a licensed inspector observes during their physical examination. Both are part of the buyer's due diligence package, but they serve different purposes. The TDS can't substitute for an inspection, and an inspection doesn't eliminate your obligation to disclose known facts.
About Paul Blair
Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.