- California Law requires that a Seller make numerous disclosures to a Buyer concerning the real estate and structures. The most important of these is the Transfer Disclosure Statement (“TDS”) which was created by the legislature to disclose “known material defects” to a Buyer. Material means it reasonably affects the value of the Property.
- California Association of REALTORS® provides the most widely used forms for real estate transactions and includes a number of additional disclosures that are required by Contract, not by California law. C.A.R. publishes a Disclosure Chart listing all Disclosures, their use, and their legal basis, if any. The most important of these is the Seller Property Questionnaire (“SPQ”)and the Agent’s Visual Inspection (“AVID”). Interestingly, if you visit website, you will find out, that the C.A.R. Disclosure Chart only requires the AVID to be used if a Seller is exempt from providing a TDS, although commonly both are provided to the Buyer.
With the recent winter storms, I have received a number of emails from agents on the issue of what must be disclosed to a prospective buyer. This Article is intended to address that question as it applies to 1–4 unit residential properties.