California Transfer Disclosure
Statement (TDS) Practice Questions
with Answers and Rationales EXAM
REVIEWS WITH COMPLETE ACTUAL
EXAM 2025- 2026 QUESTIONS AND
CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (MOST RECENT!!)
1. What is the primary purpose of the California Transfer Disclosure
Statement (TDS)?
A. To determine the market value of the property
B. To disclose the property's condition to the buyer
C. To establish financing terms
D. To calculate property taxes
Rationale: The TDS informs buyers of known material facts and the
property's physical condition before the sale is completed.
2. Which California law requires the Transfer Disclosure Statement?
A. Civil Code §1940
B. Civil Code §1102
C. Business and Professions Code §10176
D. Revenue and Taxation Code §218
Rationale: California Civil Code §1102 requires the TDS in most
residential property sales.
,3. The TDS generally applies to:
A. Commercial office buildings
B. Industrial warehouses
C. Residential properties with one to four dwelling units
D. Agricultural land only
Rationale: The TDS requirement primarily applies to one-to-four
residential units.
4. Who is primarily responsible for completing the seller's portion
of the TDS?
A. Listing agent
B. Buyer's agent
C. Seller
D. Escrow officer
Rationale: The seller must honestly complete the disclosure based on
actual knowledge.
5. The seller must disclose:
A. Only defects discovered during inspection
B. Only defects requested by the buyer
C. Known material facts affecting value or desirability
D. Only cosmetic defects
Rationale: Sellers must disclose all known material facts that may
affect value or desirability.
6. If the seller is unaware of a defect:
, A. The seller must guess.
B. The seller must hire an engineer.
C. The seller is not required to disclose unknown defects.
D. The sale cannot proceed.
Rationale: Disclosure obligations extend only to facts actually known
by the seller.
7. Which party must also visually inspect the property and
complete part of the TDS?
A. Escrow officer
B. Listing and selling agents
C. Appraiser
D. Lender
Rationale: Both agents conduct a reasonably competent visual
inspection and report observable conditions.
8. Agents are required to disclose:
A. Only structural defects
B. Observable material defects
C. Hidden defects requiring demolition
D. Engineering opinions
Rationale: Agents report observable issues discovered during their
inspection.
9. A TDS must generally be delivered:
A. At closing
B. As soon as practicable before transfer of title
Statement (TDS) Practice Questions
with Answers and Rationales EXAM
REVIEWS WITH COMPLETE ACTUAL
EXAM 2025- 2026 QUESTIONS AND
CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (MOST RECENT!!)
1. What is the primary purpose of the California Transfer Disclosure
Statement (TDS)?
A. To determine the market value of the property
B. To disclose the property's condition to the buyer
C. To establish financing terms
D. To calculate property taxes
Rationale: The TDS informs buyers of known material facts and the
property's physical condition before the sale is completed.
2. Which California law requires the Transfer Disclosure Statement?
A. Civil Code §1940
B. Civil Code §1102
C. Business and Professions Code §10176
D. Revenue and Taxation Code §218
Rationale: California Civil Code §1102 requires the TDS in most
residential property sales.
,3. The TDS generally applies to:
A. Commercial office buildings
B. Industrial warehouses
C. Residential properties with one to four dwelling units
D. Agricultural land only
Rationale: The TDS requirement primarily applies to one-to-four
residential units.
4. Who is primarily responsible for completing the seller's portion
of the TDS?
A. Listing agent
B. Buyer's agent
C. Seller
D. Escrow officer
Rationale: The seller must honestly complete the disclosure based on
actual knowledge.
5. The seller must disclose:
A. Only defects discovered during inspection
B. Only defects requested by the buyer
C. Known material facts affecting value or desirability
D. Only cosmetic defects
Rationale: Sellers must disclose all known material facts that may
affect value or desirability.
6. If the seller is unaware of a defect:
, A. The seller must guess.
B. The seller must hire an engineer.
C. The seller is not required to disclose unknown defects.
D. The sale cannot proceed.
Rationale: Disclosure obligations extend only to facts actually known
by the seller.
7. Which party must also visually inspect the property and
complete part of the TDS?
A. Escrow officer
B. Listing and selling agents
C. Appraiser
D. Lender
Rationale: Both agents conduct a reasonably competent visual
inspection and report observable conditions.
8. Agents are required to disclose:
A. Only structural defects
B. Observable material defects
C. Hidden defects requiring demolition
D. Engineering opinions
Rationale: Agents report observable issues discovered during their
inspection.
9. A TDS must generally be delivered:
A. At closing
B. As soon as practicable before transfer of title
