Who May Be Exempt From the Transfer Disclosure Statement?
By JC Pacific Corp Published 2026-09-01 Last professionally reviewed: September 2026
Certain California transfers may be exempt from the statutory Transfer Disclosure Statement. The exemption depends on the seller, transfer type and applicable law.
Transactions That May Be Treated Differently
Potential examples can include certain:
- Court-ordered transfers
- Foreclosure-related transfers
- Transfers by fiduciaries
- Transfers between co-owners
- Family-related transfers
- Government transfers
- Estate or trust circumstances
- Other transactions identified by law
The exact exemption must be evaluated for the specific sale.
What Does an Exemption Mean?
It generally means the seller may not be required to complete that particular statutory form. It does not necessarily mean:
- The property has no defects
- The seller knows nothing
- No other disclosure forms apply
- Known material facts may always be withheld
- The buyer should skip inspections
Why Is Buyer Due Diligence Especially Important?
An exempt seller may have limited personal knowledge of the property. A trustee, lender or personal representative may never have occupied the home.
Frequently Asked Questions
Is a trust sale automatically exempt?
Not every property held in a trust should be treated identically. The seller's role and nature of the transfer matter.
Is an investor exempt because the investor never lived there?
Nonoccupancy alone does not automatically establish a TDS exemption.
Who determines whether an exemption applies?
The parties should obtain appropriate professional and legal guidance based on the transaction.
When a seller provides limited property information, independent inspections and record research become even more important.
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A note on legal advice: These guides provide general, educational information about California real estate practice. They are not legal advice and do not create an attorney-client relationship. Mortgage information is general education, not individualized lending, tax or legal guidance. For advice about your specific offer, contract, closing or financing, consult a qualified California real estate attorney and a qualified mortgage professional.