The Real Estate Transfer Disclosure Statement (TDS) describes the condition of a property and, in the case of a sale, must be given to a prospective buyer as soon as practicable and before transfer of title.
A seller should fill out the document while in a “calm and reflective” state rather than while rushed during the signing of many other documents. These are very important documents and should be dealt with seriously.
Recently Steven Spile (Spile, Leff & Goor, LLP) shared the Top 10 Mistakes Made by Agents on the TDS and here are his highlights:
1. The agent fails to properly educate the seller on the importance of the disclosure and that it needs to be filled out thoroughly. This includes the agent failing to recognize the importance of his/her thorough visual/sensory inspection of all the accessible areas of the property of the AVID (Agent Visual Inspection Disclosure).
2. The agent fails to have the sellers fully complete the SPQ (Sellers Property Questionnaire).
3. The agent delivers the TDS so late that the buyer is able to rescind the transaction.
4. Information is not complete or coherent because the agents feels there is not enough space on the TDS form.
5. The agent expresses opinions of cause rather than limiting comments to the identification of defects. (A “water leak stain” versus a “stain on the ceiling.”)
6. The agent attempts to describe size, significance or degree of the defect instead of limiting comments to the identification of defects. (“Three very long ugly cracks in the wall” versus “cracks in the wall.”)
7. The agent should NEVER fill out the seller’s portion of the TDS!
8. The agent makes gratuitous comments like the house is “in good condition” or “the house looks pretty”.
9. The agents uses language that implies he/she has adopted the seller’s statements such as “appears as stated by sellers” or “do not see anything which contradicts seller’s statements.”
10. The agent fails to disclose inspection reports from prior escrows.
Mr. Spile also mentioned that if the sellers forms were filled out a while ago, ask for newer information.
Mr. Spile can be reached at www.spilelaw.com
(Photo courtesy of Dillon Scheps)
