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Practice Of Real Estate DisclosuresTransfer_disclosure_statementMEDIUM

Carlos is selling his home in Fresno. After delivering the TDS to the buyer, Carlos discovers a new crack in the foundation before escrow closes. Under California Civil Code §1102.3(c), what is Carlos required to do?

Correct Answer

B) Provide an amended TDS disclosing the newly discovered foundation crack as soon as practicable

Under California Civil Code §1102.3(c), if the seller becomes aware of new material information after delivering the TDS but before close of escrow, the seller must provide an amended disclosure as soon as practicable. The buyer then receives a new rescission period.

Answer Options
A
Wait until the buyer's home inspection reveals the crack, then negotiate a credit
B
Provide an amended TDS disclosing the newly discovered foundation crack as soon as practicable
C
Cancel the transaction and relist the property with updated disclosures from the start
D
Notify the buyer verbally but take no further written action on the TDS

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Related Topics & Key Terms

Key Terms:

TDSamended_disclosureseller_dutymaterial_factsCal_Civil_Code_1102.3

Related Concepts

A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.

Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.

Radon disclosure involves informing buyers about the presence or potential presence of radon gas in a property. Radon is a naturally occurring radioactive gas that can accumulate in buildings and is the second leading cause of lung cancer.

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