The California Real Estate Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ) are important documents used in residential real estate transactions in California. These documents serve the purpose of providing buyers with information about the condition of the property they are purchasing and disclosing any known defects or issues.
The TDS is a standardized form that the seller must complete and provide to the buyer. It covers various aspects of
the property, including its physical condition, any known defects, and any significant issues such as flooding, pests, or structural problems. The purpose of the TDS is to ensure that buyers have access to important information that may affect their decision to purchase the property.
On the other hand, the SPQ is a separate questionnaire that the seller completes to provide additional details about the property. It covers a wide range of topics, such as the history of renovations or additions, permits obtained for any work done, knowledge of neighborhood nuisances or noise issues, and any legal disputes or lawsuits involving the property. The SPQ allows the seller to disclose specific information that may not be covered in the TDS.
The purpose of both the TDS and SPQ is to promote transparency and protect the interests of buyers. By completing these forms, the seller is fulfilling their legal obligation to disclose known material facts about the property. This ensures that buyers have all the relevant information needed to make an informed decision about the purchase.
It's important for sellers to be thorough and honest when completing these forms, as failing to disclose known defects or providing false information can lead to legal consequences. It's advisable for sellers to consult with a real estate professional or attorney to ensure they accurately complete the TDS and SPQ and comply with all legal requirements.
Overall, the purpose of the California Real Estate Transfer Disclosure and Seller Property Questionnaire is to facilitate transparency and provide buyers with crucial information about the condition and history of the property they are considering purchasing.
The sellers are by no means Real Estate professionals, are not familiar with these forms and they are often not aware of the ramifications of not fully disclosing known defects. It's part of a Real Estate agents job to review the disclosures for incorrect facts, to encourage the seller's to write a separate addendum to provide more details that relate to any and all repairs, and provide invoices for any repairs. The more you take the burden off the seller for non-disclosure to more you protect them from possible litigation down the road. As a Real Estate agent, this is just another way you can show your work which ultimately leads to that client referring you to their friends and family.
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