The California Legislature has enacted a new version of the statutory Real Estate Transfer Disclosure Statement ("TDS") that is required to be used whenever a real property transaction has "not less than one nor more than four dwelling units," and is not otherwise exempt. The new version of the TDS must be used on and after July 1, 2014, but can, and for the reasons discussed below, should be used immediately.
The new version of the TDS expands an existing question in the Seller's section at II, C to add references to the CA Civil Code sections that set forth key provisions of the condominium defect law commonly known as "SB 800." The revisions are as italicized and highlighted below:
Any lawsuits by or against the Seller threatening to or affecting this real property, claims for damages by the seller pursuant to Section 910 or 914 threatening to or affecting this real property, claims for breach of warranty pursuant to Section 900 threatening to or affecting this real property, or claims for breach of an enhanced protection agreement pursuant to Section 903 threatening to or affecting this real property, including any lawsuits or claims for damages pursuant to Section 910 or 914 alleging a defect or deficiency in this real property or "common areas" (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others)."
So that members can implement the new version of the TDS immediately and avoid mid-transaction issues that might occur were the current version of the TDS delivered, for example on June 30, 2014, for a transaction closing days or weeks later when the new version would be operative, the Association has released the new version on the Instanet platform. For transactions scheduled to close well before July 1, 2014 in which the current version of the TDS was already used, the new version need not be provided. The updated form is also live on CAR's zipForm Plus platform under "R" for the full title, Real Estate Transfer Disclosure Statement.
Members are reminded to update any saved TDS templates they may have in their computer systems so that they are only using the most recent version of the TDS.