If you're selling a home in California, the Transfer Disclosure Statement is the single most important form you'll complete. It's the document where you tell the buyer — in writing, under oath — everything you know about your property's condition. Getting it right protects you. Getting it wrong can cost you tens of thousands of dollars in lawsuits years after you've moved on.
Here's a practical, section-by-section guide to completing the TDS as an Inland Empire seller.
What Is the TDS?
The Transfer Disclosure Statement is required under California Civil Code Section 1102 for virtually all residential sales of one-to-four unit properties. It's a multi-page form where you, as the seller, disclose all known material facts about the property — anything that could affect its value or desirability to a buyer.
The TDS has three main parts:
- Section I — Seller's Information: You complete this section, disclosing everything you know about the property's condition, systems, and any issues
- Section II — Agent's Inspection: Your listing agent completes this section based on their own visual inspection of the property
- Section III — Buyer's Agent Inspection: The buyer's agent adds their own observations from their visual inspection
All three sections must be completed in good faith — which California law defines as "honesty in fact in the conduct of the transaction."
Section I: What You Need to Disclose
This is where most sellers get nervous — and where the most mistakes happen. The TDS asks you to check boxes and provide details across several categories. Here's what each one covers and what you should be thinking about:
Structural and Roof
Disclose any known issues with the roof, foundation, walls, ceilings, floors, and overall structure. This includes past repairs, active leaks, cracks, settling, and any work done with or without permits. If you had your roof replaced five years ago, disclose it. If you patched a foundation crack yourself, disclose it. If you know the roof has ten years of life left, mention it.
Common IE-specific issues: Many Inland Empire homes built in the 1980s and 1990s are reaching the age where roofs need replacement, slab foundations develop cracks from expansive soil, and stucco begins to show signs of moisture intrusion.
Plumbing and Water
Disclose the condition of all plumbing systems, water heater age and type, any history of leaks, water damage, or flooding. Include information about water pressure issues, sewer line problems, and whether the home has ever had a water heater failure.
IE sellers should note: Hard water is a well-known issue throughout the Inland Empire. If you have a water softener system, disclose its presence, condition, and whether it's owned or leased.
Electrical
Disclose the condition of the electrical panel, wiring type (particularly if the home has aluminum wiring, common in 1960s–1970s IE homes), any known issues with outlets, switches, or circuits, and whether the panel has been upgraded.
Heating and Air Conditioning
In the Inland Empire, HVAC is critical — summer temperatures regularly exceed 100°F. Disclose the age, type, and condition of your heating and cooling systems. If the AC unit is original to the home or older than 15 years, buyers will want to know. If you've had any repairs, replacements, or efficiency issues, disclose them.
Appliances
List all appliances included in the sale and their known condition. If the dishwasher leaks occasionally or the oven runs hot, say so. These might seem like minor details, but undisclosed appliance issues are a common source of post-sale complaints.
Environmental Hazards
This is a broad category covering asbestos, lead-based paint (homes built before 1978), mold, radon, formaldehyde, fuel or chemical storage tanks, and contaminated soil or water. If you know about any of these — or even suspect them — disclose it.
Neighborhood and External Factors
Noise from nearby roads or airports, odors from commercial or agricultural operations, pending development that could affect the property, and any other external condition you're aware of. In the IE, common factors include proximity to the Ontario International Airport flight path, train noise from the Metrolink corridor, and traffic from the I-10 and I-15 freeways.
Deaths on the Property
California law requires disclosure of any death that occurred on the property within the last three years. Beyond that window, you're generally not required to volunteer the information — but if a buyer asks directly, you must answer truthfully.
The "I Don't Know" Option
The TDS allows you to check "Yes," "No," or "I Don't Know" for each item. Here's the critical distinction: "I Don't Know" is acceptable when you genuinely don't have knowledge of an issue. It is not a safe haven for things you suspect but don't want to confirm.
If you notice a water stain on the ceiling but don't know the cause, the correct answer isn't "I Don't Know" for water damage. The correct answer is to disclose the stain and note that you don't know the cause. The TDS requires you to disclose what you've observed, even if you don't fully understand it.
When to Deliver the TDS
California law requires the TDS to be delivered "as soon as practicable before transfer of title" (Civil Code Section 1102.3). In practice, experienced agents recommend providing the TDS before or at the time of offer acceptance — not waiting until closing.
Why early delivery matters:
- Buyer confidence: Buyers who see complete, upfront disclosures feel more comfortable making strong offers
- Reduced fall-through risk: If a buyer receives the TDS after signing the purchase agreement, they have 3 days to cancel the transaction
- Legal protection: Early, complete disclosure is your strongest defense if a dispute arises after closing
Common TDS Mistakes IE Sellers Make
1. Minimizing Known Issues
Describing a persistent garage leak as "minor moisture" or characterizing a cracked foundation as "normal settling" can come back to haunt you. Describe conditions accurately and let the buyer assess the severity.
2. Forgetting About Past Repairs
If you repaired something, it means there was a problem. Disclose both the original issue and the repair. A roof that was patched three years ago is relevant information — it tells the buyer the roof has had issues and may need attention again.
3. Ignoring Unpermitted Work
This is increasingly scrutinized in California. If you converted the garage to a bedroom, added a bathroom, or enclosed a patio without permits, disclose it. Under AB 968, sellers who renovated properties face expanded disclosure obligations — and buyers can pursue legal action if they discover unpermitted work after closing.
4. Leaving Sections Blank
Every section of the TDS should be completed. Blank sections suggest you either don't care or are hiding something. If a section doesn't apply, write "N/A" rather than leaving it empty.
5. Not Updating After Changes
If something happens between the time you complete the TDS and closing — a pipe bursts, you discover termite damage during repair work, a neighbor informs you of a property line dispute — you must update your disclosures. The obligation is ongoing throughout the transaction.
How Your Agent Helps
Your listing agent isn't just a bystander in the disclosure process. California law requires them to conduct their own visual inspection and complete Section II of the TDS independently. They're looking for red flags you might have missed or conditions you might not realize are significant.
A good agent will also review your completed Section I for completeness, ask you follow-up questions about items that need more detail, advise you on how to describe conditions accurately without unnecessarily alarming buyers, and ensure the TDS is delivered on time and properly acknowledged by the buyer.
This is one of the most important reasons to work with an experienced local agent — someone who knows what buyers and inspectors look for in Inland Empire homes, what disclosure issues are most common in your area, and how to protect you legally while keeping the transaction moving forward.
The Bottom Line
The TDS isn't a gotcha document — it's your protection. Complete, honest, early disclosure builds buyer confidence, reduces your legal exposure, and helps transactions close smoothly. The sellers who get into trouble are the ones who view the TDS as an obstacle rather than a shield.
Take the time to fill it out thoroughly. When in doubt, disclose. And work with an agent who makes sure every detail is captured correctly.
JP Dauber is a licensed California broker (DRE #01499918) with 21+ years of experience guiding Inland Empire sellers through California's complex disclosure process. SoldByJP provides full-service home selling at 1% commission. Get your free home valuation →