ContractsIntermediateCalifornia Exam

In California, the Transfer Disclosure Statement (TDS) is required for:

AAll real property sales including commercial
BResidential properties of 1-4 unitsCorrect
COnly new construction sales
DProperties with known defects only

Why Residential properties of 1-4 units Is Correct

Answer B: Residential properties of 1-4 units

California Civil Code Section 1102 requires the TDS for transfers of residential property with 1-4 units. It does not apply to commercial properties, probate sales, or certain other transactions.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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