Page 3 - SELLER & BUYER DISCLOSURES

DISCLOSURE FORMS (RESIDENTIAL FORMS)

Disclosure Regarding Real Estate Agency Relationships (AD)

Used to comply with California Civil Code. Explains types of agency relationships.
Disclosure Information Advisory (DIA)

Advises sellers of the importance of disclosing what they know affecting the value and desirability of
the property, and taking the time to be thorough and complete when making required statutory and

contractual disclosures.

Agent Visual Inspection Disclosure (AVID)

This form is used to document the results of an agent's required visual inspection of residential property.
It can be used as an attachment to the agent's section of the Transfer Disclosure Statement or as a

stand-alone when no TDS is required. Our Brokerage Requires all files to have on file. Real Estate
Licensee's Duty to Inspect Residential Property

Real Estate Transfer Disclosure Statement (TDS)

The property disclosure statement required by law in most residential sales transactions in California. It
includes Seller's mandatory disclosure of specified items and any known adverse material conditions, as

well as sections for Seller's and Buyer's agents to comply with diligent visual inspection requirements.

“As a general rule, one can say, "When in doubt, disclose." If the seller believes the item is
important enough to ask the question, then disclosure is the prudent thing to do. If it turns out

the disclosure is not important to the buyer, then it will be of no consequence. It the disclosure is
of concern; it is better to resolve the matter prior to escrow closing rather than risk a later

argument or lawsuit on whether the disclosure should have been made as a material fact”.

The seller should answer the questions based on the seller’s actual knowledge, regardless of the
time involved. The seller can always specify the time as part of an explanation. Ultimately, only a

judge or arbitrator hearing a dispute can decide whether the item is no longer material or
significant because of the passage of time. A disclosure avoids the issue.

Transfer Disclosure Statement Law- The TDS/MHTDS law applies to transfers by sale, exchange,
installment land sale contract, lease with an option to purchase, option to purchase, or ground lease
coupled with improvements, of real property (or a residential stock cooperative) improved with one-to-four

dwelling units (Cal. Civ. Code § 1102(a)). In addition, it applies to resales of manufactured homes and