Peninsula Real Estate Guide
Seller Disclosures Explained: The TDS, SPQ, and What California Law Actually Requires
Two forms, a rescission window, and two brand-new 2026 disclosure requirements worth knowing about
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TDS Legally Required, Civil Code 1102 |
SPQ Standard Practice, Not Statutory |
3 to 5 Days Buyer Rescission Window |
New in 2026 AI Photo and Smoke Residue Disclosure |
Nearly every Peninsula transaction includes two disclosure forms that get bundled together in most buyers’ minds, but they’re genuinely different documents serving different purposes, and understanding both matters for buyers and sellers alike.
The TDS: California’s Legally Required Floor
The Transfer Disclosure Statement, required under California Civil Code Section 1102 for most 1-to-4-unit residential sales, is where sellers identify known defects in structural components, mechanical systems, the roof, plumbing, electrical, and appliances. It’s a statutory form with real legal weight, and it exists specifically to protect buyers from purchasing a home with hidden, known problems the seller failed to mention.
The SPQ: The Deeper Follow-Up Interview
Not Required by Law, But Used on Nearly Every Listing
The Seller Property Questionnaire is a California Association of Realtors form, not a statutory requirement, but it’s used on the overwhelming majority of California listings because it closes gaps the TDS doesn’t explicitly cover: insurance claims, past permits and repairs, neighborhood nuisances, and prior water damage. Think of the TDS as the legal minimum and the SPQ as the thorough follow-up interview that helps sellers meet their much broader legal duty to disclose all known material facts, not just the ones a checkbox happens to ask about.
Your Agent Has an Independent Duty Too
The seller’s disclosures aren’t the only layer of protection. Both the listing agent and buyer’s agent have their own legal obligation to conduct a reasonably competent visual inspection of accessible areas and disclose anything that materially affects value. This duty exists independently of what the seller reports, meaning an agent can’t simply rely on the seller’s word alone.
What’s New for 2026
Two genuinely new disclosure items have entered standard California practice this year: whether listing photos were AI-altered, and known tobacco-smoke residue in the home. Both reflect how disclosure obligations keep expanding to cover material facts buyers increasingly care about, even ones that weren’t on anyone’s radar a few years ago.
When a Seller Is Exempt From the TDS
| Transfers by a trustee in a probate sale |
| Transfers from a trust where the trustee never occupied the home |
| Foreclosure and lender-owned (REO) sales |
| Transfers between co-owners or to a spouse |
These exemptions exist because the seller genuinely lacks firsthand knowledge of the property’s condition, not because the home is assumed to be problem-free. If you’re buying a probate or trust-sale property without a TDS, treat that as a signal to invest more heavily in your own independent inspections, not less.
Your Rescission Rights as a Buyer
Once you receive a fully completed TDS, you have a genuine legal right to cancel the transaction, typically 3 business days after personal delivery or 5 days after delivery by mail. This window is exactly why disclosures need to be delivered promptly and completely, and why a late or incomplete TDS can genuinely disrupt an otherwise smooth closing timeline.
The Full Disclosure Package
Beyond the TDS and SPQ, a complete California disclosure package typically includes the Natural Hazard Disclosure report, lead-based paint disclosure for pre-1978 homes, Mello-Roos notice where applicable, Megan’s Law notice, death-on-property disclosure when relevant, and HOA governing documents for any common-interest development. Reading all of them, not just the headline TDS, gives you the full picture of what you’re actually buying.
Key Takeaway
The TDS is your legal floor, and the SPQ is where the real detail usually lives. Together with your agent’s independent inspection duty and your own inspections, these disclosures form a genuine, multi-layered protection system, but only if you actually read every page.
Frequently Asked Questions
Is the SPQ legally required in California?
No, it’s a CAR form rather than a statutory requirement, but it’s used on nearly every California listing as standard practice.
Can I cancel a purchase after receiving the TDS?
Yes, generally within 3 business days of personal delivery or 5 days after delivery by mail.
Does a probate sale come with a TDS?
Often no, since trustee-administered probate sales are commonly exempt due to lack of firsthand knowledge; independent inspections matter even more here.
What new disclosure items appeared in 2026?
Disclosure of AI-altered listing photos and known tobacco-smoke residue both entered standard California practice this year.
| Related Reading | |
| California’s Natural Hazard Disclosure Report Explained | Another key piece of the full disclosure package. |
| Probate and Trust Sales on the Peninsula | See how TDS exemptions apply in these specific transaction types. |
| Understanding Your Preliminary Title Report Before You Buy | Another document worth reading in full, not just skimming. |
| HOA Basics for Peninsula Condo and Townhome Buyers | Understand the additional disclosure layer for common-interest developments. |
Have Questions About Disclosures You’ve Received or Need to Prepare?
I walk every client through the full disclosure package carefully, whether you’re buying or selling.
Let’s Talk About Your Transaction
Holly Noto | Coldwell Banker Realty | DRE#01244498, DRE#01908304
580 El Camino Real, San Carlos, CA 94070
650.544.6185 | [email protected]
This content reflects California Civil Code Sections 1102 and 1102.13, and general 2026 disclosure practice. This content is not legal advice; consult a real estate attorney for guidance specific to a transaction.
