Agency
What is the primary purpose of California's Transfer Disclosure Statement (TDS)?
ATo allow the buyer to waive all inspection rights
BTo require sellers to disclose known material facts and defects about the property✓ Correct
CTo certify that the property meets all local building codes
DTo document the broker's commission agreement
Explanation
The TDS (Civil Code §1102) requires sellers of 1-4 unit residential properties to disclose known material defects, conditions, and facts that might affect the property's value or the buyer's decision to purchase. The listing and selling agents must also complete their own sections of the TDS.
Related California Agency Questions
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