California Real Estate SalespersonPractice of Real Estate and DisclosuresMedium
A licensee is representing the personal representative in the sale of a decedent's property through a probate proceeding. Which statement about the Transfer Disclosure Statement (TDS) is correct?
- AThe TDS is required but may be delivered after close of escrow
- BThe TDS must be delivered exactly as in a standard resale transaction
- CThe transfer is exempt from the TDS requirement because it occurs through probate court proceedings
- DThe TDS is required only if the buyer requests it in writing
Show answer & explanationAnswer & explanation
Correct answer: C. The transfer is exempt from the TDS requirement because it occurs through probate court proceedings
California Civil Code exempts transfers by court order, including probate sales, from the TDS requirement because the personal representative typically lacks personal knowledge of the property's condition. Other statutory exemptions include trustee's sales, transfers between co-owners, and REO sales.
Why the other options are wrong
- A. There is no TDS delivery requirement at all for exempt probate transfers.
- B. Probate sales are specifically exempt, unlike standard resale transactions.
- D. The exemption is automatic by statute, not contingent on buyer request.
TDS Exemption — Probate Sales
Transfers through probate or other court-ordered proceedings are exempt from the TDS requirement under California Civil Code.
- Other exemptions include trustee's deeds, REO sales, and transfers between co-owners
- Exemption exists because sellers in these transfers often lack property knowledge
- Other disclosures (like NHD) may still apply even when TDS is exempt
Memory trick: Court-ordered sales skip the disclosure trail