Nancy, a seller in California, is transferring her home to her ex-husband as part of a court-ordered divorce settlement. Nancy asks her agent whether she needs to provide a TDS. What is the correct answer?
Correct Answer
A) No, transfers pursuant to a court order in a dissolution of marriage are exempt from the TDS
Under California Civil Code §1102.2, transfers pursuant to a court order, including those in a dissolution of marriage (divorce), are exempt from the TDS requirement. Since the transfer is court-ordered as part of the divorce settlement, no TDS is required.
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Previous Question
A California seller sells a 2-unit duplex. The seller completes the TDS but mistakenly marks 'No' for the question about whether the property has had any insurance claims in the past five years. In fact, the seller filed a water damage claim two years ago and received $15,000 from the insurance company. The buyer discovers the claim history after closing. What is the seller's potential liability?
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A seller in California is selling a single-family home built in 1975. The buyer's agent asks whether the seller must disclose the presence of lead-based paint. Under federal and California law, what is the correct disclosure requirement?