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The Fresno Ranch: Deaths, Patches, and a Late TDS

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The Fresno Ranch: Deaths, Patches, and a Late TDS

Your listing is a 1972 ranch-style home in Fresno, listed at $615,000. In the seller's TDS interview she tells you: (1) her husband died of a heart attack in the master bedroom four years ago; (2) a prior owner's adult son died of AIDS in the house in 1992; (3) the roof leaked in two spots last winter and she had a handyman patch it without pulling a permit; (4) an engineer's letter in her file calls the foundation's hairline cracks 'typical settlement; monitor annually.' The buyer's agent emails that her client specifically asks whether anyone has ever died in the home. You deliver the completed TDS two days after acceptance, hand-delivered. The buyer now wants out.

1. What must you and the seller disclose about the two deaths, and what may you not disclose?

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Separate the two events.

The husband's death (four years ago). Civil Code 1710.2 requires a seller of a 1-4 unit residential property who has actual knowledge of a death on the property within three years before the offer to disclose it if the buyer asks. The buyer has asked, so the seller must answer. Because the death is outside the three-year window, the statute does not compel disclosure, but the seller may not lie. The correct response is to answer truthfully and narrowly, or decline to answer; the seller may not say 'no one has ever died here' if that is false.

The 1992 AIDS death. A death from AIDS is excluded from disclosure regardless of when it occurred. Neither the seller nor you may disclose it, and you must not hint at it. Treat it as off-limits even if directly asked.

You should not treat the buyer's question as a trap to be dodged. Disclose the in-window material fact accurately, note that no one is obligated to discuss out-of-window or AIDS-related deaths, and document what was said and when. Discouraging the buyer from asking, or scripting an evasive answer, both create misrepresentation exposure under 1710.2 and the general duty not to deceive.

2. How should the roof, the unpermitted patch, and the engineer's letter be handled?

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All three are material facts and belong on the transfer disclosure statement and in your own written disclosures.

Roof leak and patch. A known active or recurring defect that affects value and desirability is exactly what the TDS is for. The seller should describe the leaks, the date, and the repair. The absence of a permit is separately material: unpermitted work can require correction at the buyer's cost and can complicate future resale and insurance. Disclose it plainly rather than describing the roof as 'in good condition.'

Engineer's letter. Do not substitute your own characterization. You are not an engineer, and calling the cracks 'typical' converts the engineer's hedge into your opinion. Provide the letter to the buyer, or state that it exists and is available, and recommend the buyer obtain their own inspection and a structural opinion.

Reliance. The TDS is the seller's statement, but your duties are independent: you may not conceal a known material fact or make a misleading affirmative statement. The defensible move is disclosure plus a written recommendation that the buyer investigate. Also confirm the routine transfer items: natural hazard disclosure, Megan's Law notice, smoke and CO alarms, and water heater bracing.

3. What are the buyer's cancellation rights given the TDS timing, and what should you do now?

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The TDS must be delivered as soon as practicable before transfer of title. Delivering it after acceptance is permitted, but it starts a statutory rescission clock for the buyer.

Here it was hand-delivered, so the buyer has three days after delivery to give written notice of rescission (the period is five days if the disclosure was delivered by mail). The buyer's objection is timely if it is in writing within that window. If the buyer instead removes contingencies, closes, or simply lets the period run, the right is gone.

Practical steps:

  1. Confirm the delivery date and method in writing and give the buyer written notice of the three-day right so there is no argument about when it started.
  2. Notify the seller immediately that the deposit is not yet releasable and that rescission is possible.
  3. Do not release or refund the deposit unilaterally; get a signed cancellation instruction from both sides, or hold it in trust if they disagree.
  4. Reconstruct why the TDS went out after acceptance. If the seller withheld information from you, document that too.

The buyer's strongest position is the unpermitted roof repair and the withheld engineer's letter, not the deaths; the deaths question is largely answered by the statute.