What is TDS?

September 17, 2008 · Shokoofeh Nowbakht

“

“What is TDS?” my client asked. It is a 3 page Transfer Disclosure Statement which the seller is required by law to fill out. The main purpose is for the sellers to disclose to the buyers anything they know about the condition of the house. Sellers have to truthfully answer several questions. They need to disclose facts about the neighborhood noise, such as traffic, airport noise or even a neighbor’s barking dog. Sellers let the buyers know what appliances they have and whether they are working properly. Any remodeling, with or without permits should be stated. Everything, including kitchen fire accidents should be completely revealed.

Buyers like to know, for example, how old the roof is and whether the property has copper or galvanized pipes. Other facts such as whether there has been a death in the house in the previous 3 years might be important to some buyers and need to be disclosed.
Owners of properties being sold through short sales are also required to fill this form out. REOs or bank owned properties obviously will not have TDS in their disclosure package. Banks do not know about the condition of the properties they own since they have not lived there. Basically, REOs are exempt from providing TDS.

Share and Enjoy: