The home buying process is exciting, filled with the promise of a new place to build your life. For good reason, the process is also quite stressful and can be entirely overwhelming. One of the most hectic parts of purchasing a home is the extensive paperwork involved. For first-time homebuyers or those who have not gone through the process in a long time, it is hard to know the purpose of each document.
One document that you absolutely need to keep track of is the one provided by the seller that describes the condition of the property. But which document is this, and what does it include? Read on to find out.
Transfer Disclosure Statement
What Document Provided by the Seller Describes the Condition of the Property? The Transfer Disclosure Statement.
The document provided by the seller that described the condition of the property is known as the Transfer Disclosure Statement. As a buyer, you should receive this document during the contract contingency period. The TDS is arguably one of the most important documents of the entire mortgage process. This document is not only essential for buyers, but it also protects the seller from potential lawsuits.
What Information is Included in the Transfer Disclosure Statement?
In the TDS, the seller must describe any issues of the current property. To avoid future liability, the seller should disclose everything they know about the condition of the property. The purpose of this document is to air any issues with the property to the buyer before the final purchase. The TDS must include:
- If the seller is living on the property or not
- The date of disclosure
- Disclosures of the home including pest control reports and inspections. Any damage that could impact the value and desirability of the property must be included.
Why is the Transfer Disclosure Statement Important?
The TDS is crucial for both the buyer and seller because of the information it contains. The law requires a TDS, it is not something that a buyer can opt-out of. The TDS must be sent before the purchase can be finalized. Without it, the buyer can cancel the contract. The buyer should check that the TDS is completed and signed by the seller.
Transfer Disclosure Statements are Mandatory
The Transfer Disclosure Statement is the document provided by the seller that describes the condition of the property, and it is mandatory. The TDS protects both the buyer and seller and ensures a fair transaction based on the actual condition of the property. For more information on TDS or the homebuying process, we can help. Contact us HERE to learn more.
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