Review of the Real Estate Transfer Disclosure Statement
Used in Santa Barbara Real Estate and Montecito Real Estate

One of the most important real estate documents when considering Santa Barbara homes for sale is the Real Estate Transfer Disclosure Statement.  This document is encountered either during the process of negotiations on a Santa Barbara property or after an agreement has been settled and you´re working through the escrow process.  The RE transfer disclosure statement is typically one of a number of property disclosures that will be reviewed during the course of a transaction. 

The transfer disclosure is completed by the seller´s and participating Realtors in the transaction with the purpose of informing the buyer of conditions that exist or may exist with the subject property.  This primarily serves as an introduction of elements that have been added to a property and their condition as well as a review of elements that may need repair or further inspection.  It is important to note that this is not a warranty by the sellers or Realtors, it is a disclosure intended to give the buyer a better insight to the property.  The information provided may trigger the buyer´s interest in investigating existing conditions to a greater extent prior to completing the transaction.

The document opens by stating where the subject property is located and that as of the noted date, the conditions discussed in the contents are known to exist.  There are five sections that follow in the disclosure statement, they are: notation that other disclosure forms may be included with the transaction, a section for sellers to note factors about the property, a seller´s agent descriptive summary, a buyer´s agent descriptive summary and a concluding section for all parties to sign and acknowledge receiving a copy of this disclosure.

The first section is relevant as an insight that other disclosure reports may exist and or the availability of reports from inspections that have been completed.  It is important that buyers make themselves familiar with the information contained in those inspections and reports as they will address issues that may affect the value, condition and desirability of the property.

Part two of the RE transfer disclosure consists of representations made by the sellers as to items that are included in the transaction, the condition of those various elements and any defects or malfunctions in the physical aspects of the property.  Lastly there is a section where the seller discloses any knowledge of changes that may have been made to the property or conditions that impact the property which may not be know to the buyer based on casual inspections.

Part three of the RE transfer disclosure is a place where the seller´s agent can make notations about the property based on a reasonably competent inspection of accessible areas of the property.  Part four is a section for the buyer´s agent to make similar notations regarding what they have observed.  In summary these disclosures provided by the seller and the participating agents may be a basis for requesting more information from the sellers or obtaining further professional advice on matters that are a concern. 

Part five provides signature places for all parties in the transaction acknowledging that they have received a copy of this disclosure form.  Note that the buyer has three days from receipt of this disclosure to rescind the purchase agreement, so pay close attention to this disclosure when you have it in hand.  Sometimes it is included with a counter offer or may be included in a package of information given out after the purchase terms have been agreed upon.  Read through it closely!  Realtors can advise you about real estate, legal advice should be sought from an attorney.