Statutory Disclosures

Statutory Disclosures

Statutory Disclosures include the TDS, SPQ, FLD, NHD and more.

  1. TDS [Transfer Disclosure Statement] is perhaps the most important document beside the Purchase Agreement in a transaction.
  • Page 1
  1. As-of Date needs to be filled in.
  2. Section 1 needs a box checked.
  3. Occupancy needs to be checked.
  4. II.A. Seller to check what applies – go across each line horizontally.
  5. At bottom of Page 1
    1. Seller to answer all questions [roof, type, age, 220-Volt, etc.]
    2. Seller to answer Yes or No [any of above that are not in operating condition?]

REMEMBER – Any “Yes” answer needs written explanation.

  • Page 2
  1. II.B Yes or No [aware of any significant defects/malfunctions in any of the following?]
  2. II.C 1-16
    1. Seller to check appropriate boxes
    2. C.2 – usually Yes [fences or common walls]
    3. C.12, C.13, C.14 – Yes if there is a Homeowners Association.
    4. C.16 – regarding any litigation against property [or association].
    5. Seller needs to sign and date at bottom of page 2.
  • Page 3
  1. Agents both need to complete “visual” section, preferably checking box for AVID.
  2. Bottom – should be signed AFTER all of pages 1-3 are completed.

NOTE: The TDS is not complete unless it includes the LA AVID (which should be done at the same time as the TDS is filled out by the Seller).

2. SPQ [Seller Property Questionnaire] is an Additional Statutory Disclosure

  1. This form contains 4 pages of additional disclosures that the Seller must provide to the Buyer.
  2. Note that this form asks: “Are You (Seller) Aware of . . . Yes or No. There is no reason for a Seller to put: “I don’t know” or “Unknown.” If Seller is “not aware of . . . ” then they should check – No.
  3. Page 1 is especially important for two of the questions:
    1. Within the last 3 years, the death of an occupant of the Property upon the Property?
    2. Insurance claims affecting the Property within the past 5 years
  4. As with all disclosures, any question answered “Yes” needs a written explanation.

Trustee Seller [who has never held title in their name & has not lived in the home within last year] is Exempt from completing the TDS and SPQ. Exempt Trustee is required to complete the ESD [Exempt Seller Disclosure].

3. FLD [Lead-Based Paint Disclosure]. If home was build before 1978, then the FLD is required.

4. Earthquake & Environmental Hazard Report is required for homes build before 1960. This form is part of the Earthquake & Environmental Hazard Booklet.

5. NHD/NHDS [Natural Hazard Disclosure] is also a Statutory Disclosure

  1. The Disclosures that are included in the 3rd-Party NHD Report, including tax data and environmental disclosures are part of the Statutory Disclosures that Seller must provide to the Buyer.

6. FHDS [Fire Hardening and Defensible Space Disclosure and Addendum] – required if the Property [SFR, Condo & MH] is in a STATE high fire severity zone as per the NHDS.

  • If in a STATE high fire severity zone, then check FHDS paragraph 2.B boxes 1-6 and paragraph 3.A. for  IS or IS NOT subject to local vegetation ordinance [fire zone].
  • Always check City & County requirements – May need fire department inspection. [Orinda & Moraga]

7. RPA Paragraph 11.E. – Note to Buyer and Seller: Waiver of Statutory and Lead Disclosures is prohibited by Law.

 

in Buyers, Compliance, Listings