Most Common Mistakes on the Transfer Disclosure Statement (TDS)

If you’ve ever filled out a Real Estate Transfer Disclosure Statement (TDS) in California, you know it’s one of the most important forms in the transaction—and one of the easiest places for mistakes to slip through. As a Transaction Coordinator, I see the same issues come up again and again. Here’s what every agent should be watching for.

1. Don’t Forget the Date in Section I

The very first section asks for the disclosure date, but agents often skip right past it. This matters. The date helps establish when disclosures were made, which in turn affects contingency timelines. Missing it may give the buyer extra time to back out, which can create unnecessary headaches later.

2. Checking the Right Box in Section I

Section I also requires you to indicate how other disclosures are being handled. In my California training, we were instructed to always check the middle box and write “Natural Hazard Disclosure” in the text box. Of course, if there are other reports (like inspection reports or supplemental disclosures), those should be listed here as well. Leaving this blank can create ambiguity.

3. Section II: Is the Seller Occupying the Property?

Another box that gets missed far too often is right at the beginning of Section II: whether the seller is currently occupying the property. This is a small detail with big implications, since it informs the buyer about the seller’s perspective and knowledge of the property’s condition.

4. Incomplete or Skipped Answers

Sometimes sellers skip questions altogether or leave sections half-done. This is where a thorough agent or TC makes the difference. Incomplete disclosures aren’t just sloppy—they could expose the seller to liability and confuse the buyer.

The best practice? Send it back for revisions. Ask the seller to clarify and complete every section. Not only does this protect your client, it can also extend contingency timelines if disclosures are delivered later, buying everyone more breathing room.

Why This Matters

The TDS isn’t just a formality—it’s a legal document. Errors, omissions, or sloppy work can create delays, increase liability, or even derail a deal. Taking the time to complete it properly helps everyone involved:

• Buyers get the full picture they deserve.

• Sellers reduce their risk of post-closing disputes.

• Agents protect their reputation and build trust by showing diligence.

Pro Tip: Always review your seller’s TDS line by line before sending it to the buyer’s side. A careful eye now can save a deal later.