A California seller fails to provide a Transfer Disclosure Statement before close of escrow. Two years after closing, the buyer discovers undisclosed foundation problems. The seller claims the buyer waived the TDS by proceeding to close escrow. Which statement best describes the buyer's legal position under California law?
Correct Answer
B) The buyer may pursue a damages claim against the seller for failure to provide the mandatory disclosure, and the seller cannot use the buyer's act of closing as a waiver defense
Under California Civil Code §1102.3, the TDS is a mandatory statutory requirement that cannot be waived by either party. A seller's failure to provide the TDS does not eliminate the buyer's remedies, and the buyer's act of proceeding to close escrow does not constitute a waiver of those rights. Post-closing, the buyer's primary remedy is a civil damages claim against the seller for losses caused by the failure to disclose material facts that the TDS was designed to reveal. The statute is designed to protect buyers, and courts have consistently held that sellers cannot use the buyer's closing as a shield against disclosure violations.
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Previous Question
Under California Civil Code §1102.3, a seller must amend the Transfer Disclosure Statement if the seller becomes aware of new information after the original TDS is delivered. Which of the following does NOT trigger an obligation to amend the TDS?
Next Question
Martin, a real estate salesperson in California, is listing a home for sale. The seller asks Martin whether the property's proximity to a busy airport needs to be disclosed on the TDS. Under California disclosure law, what is the correct answer?