A California seller provides a TDS that accurately describes all known conditions at the time of signing. Three weeks later, a strong earthquake causes visible cracks in the home's walls and damages the chimney. Escrow has not yet closed. What must the seller do?
Correct Answer
A) Provide an amended TDS disclosing the earthquake damage before the close of escrow
Under California Civil Code §1102.3(c), the seller has a continuing obligation to update the TDS when new material information becomes known before closing. Earthquake damage that causes visible cracks and chimney damage is clearly material, and the seller must provide an amended TDS as soon as practicable.
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Under California Civil Code §1102, what is the primary purpose of the Transfer Disclosure Statement (TDS) in a residential sale?
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A California listing agent represents a seller who is an elderly widow with limited English proficiency. The seller does not fully understand the TDS questions and asks the agent to fill out the seller's section for her. Under California law, how should the agent handle this situation?