How to Sell Your Home Without an Agent: A Complete Guide to the Transfer Disclosure Statement (TDS) in California
One of the most important aspects of selling a home in California is ensuring you properly complete and submit the Transfer Disclosure Statement (TDS). If you're wondering how to sell your home on your own, understanding the TDS and the required disclosures is key to a smooth transaction.
What is the Transfer Disclosure Statement (TDS)?
The Transfer Disclosure Statement (TDS) is a required form for home sellers in California, designed to disclose the current condition of the property to potential buyers. It’s an important part of the selling process, ensuring transparency and helping to avoid legal disputes later. Think of it as your opportunity to tell the buyer everything you know about the home’s condition — it’s not a warranty but a disclosure of any known issues.
Why You Need the TDS When Selling Your Home
As a seller, you’re legally required to provide the TDS to any potential buyers. It’s essential because:
Transparency: It helps the buyer make an informed decision.
Legal Protection: By completing it accurately, you protect yourself from future legal complications.
Smooth Process: Buyers may feel more confident when they know what to expect from the property.
Key Components of the TDS
Here’s what you need to disclose in the TDS:
General Property Condition: You’ll need to describe the condition of the property, including the structure, plumbing, and electrical systems.
Known Defects or Issues: If you know of any defects — like roof leaks, plumbing issues, or pest infestations — you need to disclose them.
Systems and Appliances: You must report whether systems like heating, air conditioning, and appliances are functioning well.
Environmental Hazards: If your property has lead-based paint (for homes built before 1978), mold, or asbestos, this must be disclosed.
Additional Required Disclosures for Sellers
In California, there are a few other disclosures you should know about:
Natural Hazards: If your property is in a flood zone, earthquake fault zone, or high fire hazard area, this must be disclosed.
Lead-Based Paint: If your home was built before 1978, you must disclose whether there is lead-based paint on the property.
Smoke Detectors and Water Heater: California law requires you to ensure smoke detectors are installed and that your water heater is properly anchored.
The Buyer’s Right to Cancel After Receiving the TDS
Once you deliver the TDS to the buyer, they have three days to cancel the agreement (if delivered in person) or five days if it’s mailed. This allows them time to review the property’s condition and decide if they want to move forward.
How to Complete the TDS
Filling out the TDS is straightforward, but you must be honest and thorough. If you’re unsure about the condition of your home, it’s wise to hire a professional inspector to check for issues. Be sure to list everything — even if you think it’s minor. The more information you provide, the smoother the process will go.
What Comes Next?
Once the TDS is filled out and provided to the buyer, they may request a home inspection. After the inspection, they could ask for repairs or a reduction in price. If you’re transparent from the start, you minimize the chances of surprises later on.
Selling your home without an agent is possible, but it comes with extra responsibility. Understanding the legal forms, like the TDS, and fulfilling your disclosure obligations will help make your sale go as smoothly as possible.
Ready to take the first step? Download the Transfer Disclosure Statement below to get started!
