Our Los Angeles Real Estate Attorneys have seen Transfer Disclosure Statements (“TDS”) in litigation left blank with only the words “REO” or “As Is” written across the TDS form. Despite an “as is” sale wherein the buyer takes the property in its present and observable condition and without any warranty by the seller, California law mandates the TDS to be filled out. Cal. Civ. Code § 1102.1(a) states “It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an “as is” sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.”(Emphasis added.) In Loughrin, the Court of Appeal reversed the trial court’s order granting summary adjudication in favor of a seller of real estate on a cause of action based on the seller’s failure to make appropriate disclosures of defects in the property as required by Cal. Civ. Code 1102 et. seq. Id. at 1191.
Buyers should know that foreclosures and other types of transfers are exempt.
Thus, the prudent Real Estate Agent should fill out the TDS even in an “as is” sale.