A Transfer Disclosure Statement Example

I wrote about the TDS, or transfer disclosure statement, yesterday, and I'd like to provide an example, just one example of many in my mind, of why it's important to follow-through on these.

I was involved in a case a few years ago where the seller didn't properly list the items in the kitchen which weren't properly. In the lawsuit against the seller, the buyers added this failure to disclose to their laundry list of fraud causes of action.

The case primarily centered on fraud in non-disclosure of inadequate support for the house (an older house) and pest problems. When that part of the case essentially fell apart a few months later, the buyers were faced with whether to proceed or not. Lots of money in attorneys fees were at stake. Their case didn't support this risk. BUT, they also had this failure to disclose in the kitchen, which, if they took to trial and won, they may get their attorneys fees, or some of them, back. They could take a chance on the big one, and if they lose, they can still fall back on the small ones. The buyers ended up settling with my clients (the sellers) on the eve of trial, for very little money. But it was touch and go for awhile there, and their attorney kept harping on these small items.

If I remember correctly, the dishwasher didn't work properly, the stove didn't work properly, and there were some exposed wires in the kitchen. Items that sometimes are overlooked in the TDS process.