Understanding the SPQ & TDS: A Seller’s Guide to Full Disclosure

When selling a home in California, transparency is key. Buyers want to know as much as possible about a property's condition before making one of the biggest purchases of their lives. That’s where the Seller Property Questionnaire (SPQ) and Transfer Disclosure Statement (TDS) come in.

As a seller, filling out these forms thoroughly and honestly isn’t just a formality—it’s a legal requirement that protects you from potential liability. However, you are only responsible for disclosing what you personally know about the property. You do not need to report hearsay or assumptions.

🔹 DO disclose any past repairs, damages, or issues that you have firsthand knowledge of.
🔹 DON’T include things you’ve only heard from neighbors, previous owners, or contractors—unless you have documentation or direct experience.

💡 Example: If you personally hired a plumber to fix a leak last year, you must disclose it. But if a neighbor once mentioned that the home may have had water damage 20 years ago, and you have no records or firsthand knowledge of it, you are not required to include it.

Important: If you answer “YES” to any question on these forms, you must provide an explanation. Be as clear and detailed as possible to avoid any misunderstandings later in the transaction.

What is the TDS (Transfer Disclosure Statement)?

The TDS is a mandatory disclosure form required by California law that provides buyers with a general overview of the property’s condition.

This form asks sellers to disclose:
✔️ Any known structural issues, like foundation cracks or roof leaks.
✔️ The functionality of key systems, such as plumbing, electrical, and HVAC.
✔️ Any modifications or additions made without permits.
✔️ Neighborhood nuisances or issues like noise or odors.

Think of the TDS as a general overview of what a buyer needs to know about your home. It’s one of the first disclosures buyers receive and can significantly impact their decision-making process.

💡 How to Fill It Out Correctly:

• Be honest and accurate—don’t guess or leave sections blank.
• If you’re unsure of an answer, write "unknown" rather than guessing.
• If a system is working "to your knowledge," state that, but don't guarantee it.
• Don’t try to hide issues—buyers will likely uncover them in an inspection.
• If you answer “YES” to anything, be sure to explain it clearly.

What is the SPQ (Seller Property Questionnaire)?

While the TDS provides a broad overview, the SPQ digs deeper into specific details. The SPQ is designed to give buyers more insight into anything that might affect the property’s condition, value, or desirability.

This questionnaire asks about:
✔️ Insurance claims on the property (past fire, water damage, or other claims).
✔️ Any past or current repairs (foundation work, roof replacement, plumbing leaks, etc.).
✔️ Lawsuits or disputes related to the home.
✔️ Neighborhood issues, such as noise complaints or ongoing conflicts.
✔️ Presence of pests, mold, or hazardous materials like lead-based paint or asbestos.

💡 How to Fill It Out Correctly:

• Answer each question completely and truthfully.
• If a repair was made, disclose when, how, and whether permits were obtained.
• If you’re unsure about something, say so! It's better than making an inaccurate statement.
• If you know about an issue but haven’t fixed it, you still need to disclose it.
• If you answer “YES” to anything, include a clear explanation of what happened, when, and how it was handled.

Why Do These Forms Matter?

Failing to properly disclose information can lead to serious legal consequences. If a buyer later discovers an undisclosed issue, they could sue for misrepresentation—even years after the sale.

By completing these forms accurately, you:
✅ Protect yourself from future legal disputes
✅ Give buyers confidence in their purchase
✅ Ensure a smoother transaction

💡 Pro Tip: If you're unsure about what to disclose, a general rule is:
👉 "If you have to ask whether you should disclose it, you probably should!"