California real estate disclosure laws California Real Estate Disclosures | Page 9

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Transfers to a spouse or to a person or persons in the lineal line of
consanguinity;

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Transfers resulting from a judgment of dissolution of marriage, or of
legal separation, or from a property settlement agreement incidental to
such a judgment;

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Transfers from one co-owner to another;

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Transfers by the State Controller for unclaimed property;

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Transfers resulting from failure to pay taxes; and

• Transfers to or from any governmental entity.
(CAL. CIV. §§ 1102, 1102.2, 1102.3)

1. Termination Right.
Should delivery of any of these disclosures or an amended disclosure occur
after execution of an offer or of a purchase agreement, the buyer has three
days after delivery of the disclosure in person or five days after delivery by
deposit in the United States mail to terminate the offer or the agreement by
delivering a written notice of termination to the seller or the seller’s agent.
(CAL. CIV. §1102.3)

2. Real Estate Transfer Disclosure Statement
The Real Estate Transfer Disclosure Statement (TDS) describes the
condition of a property and, in the case of a sale, must be given to a
prospective buyer as soon as practicable and before transfer of title. In the
case of a transfer by a real property sales contract (as defined in Civil Code
Section 2985) by a lease coupled with an option to purchase, or by a ground
lease coupled with improvements, the TDS is to be delivered before the
execution of any of the foregoing.
The seller and any broker(s)/agent(s) involved are to participate in the
disclosures. If more than one broker/agent is involved, the broker/agent
obtaining the offer is to deliver the disclosures to the prospective buyer
unless the seller instructs otherwise.
Delivery to the prospective buyer of a report or opinion prepared by a
licensed engineer, land surveyor, geologist, structural pest control operator,
contractor, or other expert (dealing with matters within the scope of the
professional’s license or expertise) may limit the liability of the seller and
the real estate broker(s)/agent(s) when making required disclosures. The
overall intention is to provide meaningful disclosures about the condition of
the property being sold or transferred.
(CAL. CIV. § 1102.4)

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