California Transfer Disclosure Statement (TDS)
exam 2026 questions and rationales answers
1. What is the primary purpose of California’s Transfer Disclosure Statement (TDS)?
A. To determine the property’s assessed value
B. To disclose known material facts and conditions about the property
C. To establish the purchase price
D. To provide a title insurance policy
Answer: B. To disclose known material facts and conditions about the property
Rationale: The TDS is designed to give prospective buyers information about the property’s
known conditions and material facts.
2. Which California law primarily governs the Transfer Disclosure Statement?
A. Business and Professions Code
B. Civil Code
C. Corporations Code
D. Probate Code
Answer: B. Civil Code
Rationale: California Civil Code provisions, particularly §§ 1102 et seq., establish statutory real
estate disclosure requirements.
3. Who generally must complete the TDS in a covered residential sale?
A. Only the buyer
B. Only the escrow holder
C. The seller
D. The title company
Answer: C. The seller
Rationale: The seller generally completes and delivers the required Transfer Disclosure
Statement.
4. A real estate agent representing a seller generally has what obligation concerning the TDS?
A. Ignore the TDS because it is solely the seller’s responsibility
B. Conduct a reasonable visual inspection and disclose material facts discovered
C. Guarantee every statement made by the seller
D. Prepare a property appraisal
,Answer: B. Conduct a reasonable visual inspection and disclose material facts discovered
Rationale: A broker or salesperson has statutory inspection and disclosure duties that are
separate from the seller’s disclosures.
5. The TDS is primarily associated with the sale of:
A. Commercial office buildings
B. Certain residential properties
C. Undeveloped federal land
D. Personal property only
Answer: B. Certain residential properties
Rationale: The statutory TDS requirements generally apply to qualifying residential real property
transactions.
6. When should the seller generally provide the TDS to the buyer?
A. After closing
B. Before transfer of title, subject to statutory timing requirements
C. Only after the buyer requests it
D. Only after the inspection contingency expires
Answer: B. Before transfer of title, subject to statutory timing requirements
Rationale: The disclosure is intended to give the buyer meaningful information before
completing the transaction.
7. What happens if the seller’s disclosure is delivered after the buyer has made an offer?
A. The disclosure is automatically invalid
B. The buyer may have certain statutory rights depending on timing
C. The transaction must automatically be canceled
D. The seller loses title to the property
Answer: B. The buyer may have certain statutory rights depending on timing
Rationale: California law provides specific remedies and timing rules when required disclosures
are delivered late.
8. Which statement about the TDS is most accurate?
A. It replaces the buyer’s inspection
B. It eliminates the need for a home inspection
C. It supplements, rather than replaces, other investigations
D. It guarantees the condition of the property
Answer: C. It supplements, rather than replaces, other investigations
Rationale: Buyers are still responsible for conducting appropriate inspections and investigations.
, 9. A seller should answer TDS questions:
A. Based on what the seller believes the buyer wants to hear
B. Honestly and to the best of the seller’s knowledge
C. Only if the seller has written documentation
D. By leaving uncertain questions blank
Answer: B. Honestly and to the best of the seller’s knowledge
Rationale: Sellers should provide truthful, complete information within their actual knowledge.
10. If a seller knows of a significant defect that is not specifically asked about on the TDS, the
seller should generally:
A. Say nothing
B. Disclose the known material fact
C. Wait for the buyer to discover it
D. Tell only the escrow officer
Answer: B. Disclose the known material fact
Rationale: Disclosure duties are not limited to checking boxes on a form when a known material
fact must otherwise be disclosed.
11. What is a material fact in the context of real estate disclosure?
A. A fact that could affect a reasonable buyer’s decision regarding the property
B. Any fact about the seller’s personal life
C. The seller’s preferred moving date
D. The agent’s commission amount
Answer: A. A fact that could affect a reasonable buyer’s decision regarding the property
Rationale: Material facts are facts that may influence a buyer’s decision or the value or
desirability of the property.
12. Which condition would most likely require disclosure if known by the seller?
A. A hidden significant roof leak
B. The seller’s favorite color
C. The seller’s vacation plans
D. The buyer’s financing preference
Answer: A. A hidden significant roof leak
Rationale: A significant known physical defect can materially affect the property’s value and
desirability.
13. The TDS generally requires information about:
A. The condition and systems of the property
exam 2026 questions and rationales answers
1. What is the primary purpose of California’s Transfer Disclosure Statement (TDS)?
A. To determine the property’s assessed value
B. To disclose known material facts and conditions about the property
C. To establish the purchase price
D. To provide a title insurance policy
Answer: B. To disclose known material facts and conditions about the property
Rationale: The TDS is designed to give prospective buyers information about the property’s
known conditions and material facts.
2. Which California law primarily governs the Transfer Disclosure Statement?
A. Business and Professions Code
B. Civil Code
C. Corporations Code
D. Probate Code
Answer: B. Civil Code
Rationale: California Civil Code provisions, particularly §§ 1102 et seq., establish statutory real
estate disclosure requirements.
3. Who generally must complete the TDS in a covered residential sale?
A. Only the buyer
B. Only the escrow holder
C. The seller
D. The title company
Answer: C. The seller
Rationale: The seller generally completes and delivers the required Transfer Disclosure
Statement.
4. A real estate agent representing a seller generally has what obligation concerning the TDS?
A. Ignore the TDS because it is solely the seller’s responsibility
B. Conduct a reasonable visual inspection and disclose material facts discovered
C. Guarantee every statement made by the seller
D. Prepare a property appraisal
,Answer: B. Conduct a reasonable visual inspection and disclose material facts discovered
Rationale: A broker or salesperson has statutory inspection and disclosure duties that are
separate from the seller’s disclosures.
5. The TDS is primarily associated with the sale of:
A. Commercial office buildings
B. Certain residential properties
C. Undeveloped federal land
D. Personal property only
Answer: B. Certain residential properties
Rationale: The statutory TDS requirements generally apply to qualifying residential real property
transactions.
6. When should the seller generally provide the TDS to the buyer?
A. After closing
B. Before transfer of title, subject to statutory timing requirements
C. Only after the buyer requests it
D. Only after the inspection contingency expires
Answer: B. Before transfer of title, subject to statutory timing requirements
Rationale: The disclosure is intended to give the buyer meaningful information before
completing the transaction.
7. What happens if the seller’s disclosure is delivered after the buyer has made an offer?
A. The disclosure is automatically invalid
B. The buyer may have certain statutory rights depending on timing
C. The transaction must automatically be canceled
D. The seller loses title to the property
Answer: B. The buyer may have certain statutory rights depending on timing
Rationale: California law provides specific remedies and timing rules when required disclosures
are delivered late.
8. Which statement about the TDS is most accurate?
A. It replaces the buyer’s inspection
B. It eliminates the need for a home inspection
C. It supplements, rather than replaces, other investigations
D. It guarantees the condition of the property
Answer: C. It supplements, rather than replaces, other investigations
Rationale: Buyers are still responsible for conducting appropriate inspections and investigations.
, 9. A seller should answer TDS questions:
A. Based on what the seller believes the buyer wants to hear
B. Honestly and to the best of the seller’s knowledge
C. Only if the seller has written documentation
D. By leaving uncertain questions blank
Answer: B. Honestly and to the best of the seller’s knowledge
Rationale: Sellers should provide truthful, complete information within their actual knowledge.
10. If a seller knows of a significant defect that is not specifically asked about on the TDS, the
seller should generally:
A. Say nothing
B. Disclose the known material fact
C. Wait for the buyer to discover it
D. Tell only the escrow officer
Answer: B. Disclose the known material fact
Rationale: Disclosure duties are not limited to checking boxes on a form when a known material
fact must otherwise be disclosed.
11. What is a material fact in the context of real estate disclosure?
A. A fact that could affect a reasonable buyer’s decision regarding the property
B. Any fact about the seller’s personal life
C. The seller’s preferred moving date
D. The agent’s commission amount
Answer: A. A fact that could affect a reasonable buyer’s decision regarding the property
Rationale: Material facts are facts that may influence a buyer’s decision or the value or
desirability of the property.
12. Which condition would most likely require disclosure if known by the seller?
A. A hidden significant roof leak
B. The seller’s favorite color
C. The seller’s vacation plans
D. The buyer’s financing preference
Answer: A. A hidden significant roof leak
Rationale: A significant known physical defect can materially affect the property’s value and
desirability.
13. The TDS generally requires information about:
A. The condition and systems of the property
