If you’re buying a home in California, you’ll receive two forms early in the transaction that matter more than most buyers realize: the Transfer Disclosure Statement (TDS) and the Seller Property Questionnaire (SPQ). Understanding what these forms are supposed to cover — and what happens when a seller gets them wrong — can save you from a costly surprise after closing.
What is the TDS?
The Transfer Disclosure Statement is required under California Civil Code section 1102 et seq. for most residential sales. It’s a standardized form where the seller checks boxes and answers questions about the condition of the property: the roof, foundation, plumbing, electrical, appliances, known defects, and any material facts affecting value. Sellers are legally required to fill it out honestly and completely.
What is the SPQ?
The Seller Property Questionnaire goes further. It’s a California Association of Realtors (CAR) form that asks more detailed, open-ended questions — about permits, additions, disputes with neighbors, insurance claims, prior repairs, pest issues, and more. It’s not always legally mandated the way the TDS is, but it’s standard practice in nearly every California transaction, and sellers who leave it blank or answer vaguely raise a red flag.
Why these forms matter more than buyers think
Many buyers skim these forms during a fast-moving transaction and don’t revisit them until something goes wrong. That’s a mistake. If a defect shows up after closing, the TDS and SPQ become the central evidence in determining what the seller knew and represented at the time of sale. If the seller checked “No” on a question they should have answered “Yes,” or left something blank that they had a duty to disclose, that’s evidence supporting a nondisclosure claim.
Common gaps we see
- A “No” checked for “material defects” despite a documented prior repair
- Unpermitted additions or conversions not mentioned anywhere in the SPQ
- Water intrusion or roof leaks disclosed as “repaired” without permit or invoice backup
- Boxes left blank rather than answered, especially on sensitive questions
What buyers should do at the time of purchase
- Read the TDS and SPQ carefully, not just the summary your agent gives you
- Cross-reference answers against the home inspection report — inconsistencies are worth asking about before you remove contingencies
- Request permit history from the county for any additions, conversions, or major renovations
- Keep a copy of everything — you may need it later
If you’re past closing and finding problems now
Go back to your TDS and SPQ. Compare what’s disclosed against what you’re discovering. If there’s a mismatch, and evidence the seller knew or should have known, you may have grounds for a nondisclosure claim under Civil Code section 1102 et seq., with damages available under section 3343(a).
How Jimmy can help
Jimmy Nguyen reviews TDS and SPQ disclosures every week — both as a real estate attorney and a licensed broker who understands what these forms are supposed to capture. If something doesn’t add up with your disclosures, get a second set of eyes on it.
Call 408.645.0606 or email jimmy@lawjn.com for a free case evaluation.