The phrase ‘TDS Exempt’ is seen in listing remarks – what does it mean?
TDS stands for Transfer Disclosure Statement, which is our regular form used by sellers to disclose everything they know about the property and neighborhood.
The most common example of who might be exempt from using the form are sellers who have inherited the property. The common belief is that those sellers are exempt from disclosing, but that is not true.
All sellers are required to disclose anything they know about the property. If they happen to be TDS Exempt, it only means they don’t have to use the form.
It doesn’t make much sense, but it is, what it is.
The form does ask probing questions to jog the memory and elicit a response, so all sellers should review it and decide if they have anything to disclose.
Agents are never exempt from disclosing what they know, or what they would find during a normal visual inspection.