CA Transfer Disclosure Statement by Home Sellers Must Include Constructi​on Defect Claims

TDS by home sellers in California is now revised to include construction defect claims and litigation.

Effective July 1, 2014, the Real Estate Transfer Disclosure Statement (TDS) has been revised to require disclosure of whether a seller is aware of certain construction defect claims under SB 800 (at Cal. Civil Code §§ 895, et seq.) as specified.

The TDS is generally a required disclosure for sales transactions involving one-to-four residential units (with certain exemptions).

Under the new law, the revised TDS will inquire, in question 16 of Section 11C, as to whether a seller is aware of any of the following claims threatening to or affecting the real property: (1) claims for damages by the seller based on construction defects (under Cal. Civil Code §§ 910 and 914); (2) claims for breach of warranty (under Cal. Civil Code § 900); or (3) claims for breach of an enhanced protection agreement (under Cal. Civil Code § 903), including any lawsuits or claims for damages under sections 910 or 914 alleging a defect or deficiency in the real property or common areas.

See CA Civil Code §§ 895 to 945.5 – (law operative as of July 1, 2014).


Coldwell Banker residential brokerage

By Harrison K. Long. Source of some information is the California Association of Realtors. This is for information only and is not the providing of legal services. If you are a home seller, you should consult carefully with your Realtor, broker and agent, about your disclosure obligations.

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Contact us at 949-854-7747 with your questions about home selling and values at Irvine, Newport Beach, Costa Mesa, and other Orange County CA cities and areas.

About Harrison K. Long

Real estate and business attorney. CA State Bar Association attorney member #69137. Professional real estate representative, REALTOR®, GRI, Real estate broker, CALBRE #01410855. Broker associate, HomeSmart Evergreen Realty, Irvine, CA. Providing real estate legal information and services for property owners, estate trustees, executors and administrators, fiduciaries, bankers, investor group managers, with their best decisions about homes and real estate. Orange County REALTORs® (member and prior service on its board of directors). "Realtor of the Year 2016" award by the Orange County REALTORs®. California Association of REALTORs® (now serving on its board of directors). National Association of REALTORs® member. Contact by cell or or text at 949-701-2515.
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