What the Seller Property Questionnaire Asks That the TDS Doesn’t

The Transfer Disclosure Statement establishes what the seller knows about the property. The Seller Property Questionnaire is where they explain it. The two forms work in sequence: the TDS lays the foundation, and the SPQ builds the history on top of it. Sellers who treat the SPQ as a redundant paperwork exercise miss the point and, in some cases, create the kind of gaps in their disclosure that produce post-closing disputes.

The SPQ is a California Association of Realtors supplemental disclosure form. It is not mandated by statute the way the TDS is, but it is standard practice in California residential transactions and widely required by buyers and their agents as a condition of an offer. Its purpose is to draw out the property’s history in categories the TDS touches only lightly, if at all.

 

What the SPQ Covers That the TDS Does Not

The TDS asks whether systems and components are functional and whether the seller knows of any defects. The SPQ asks what happened, when, and what the seller did about it. That shift from current condition to documented history is the essential difference between the two forms.

Insurance claims: The SPQ asks sellers to disclose any insurance claims made on the property, including the nature of the claim and whether it was paid. A prior water intrusion claim, a fire damage claim, or a landslide claim tells a buyer something the current physical condition of the property may not. Remediated damage is still disclosed damage, and an insurer’s claims history is a matter of record that buyers can verify.

Drainage and water intrusion history: The SPQ asks specifically about water intrusion, drainage problems, and flooding, including past events that may have been remediated. A seller who replaced a slab foundation after a drainage failure ten years ago and has had no problems since is still required to disclose that history. The repair resolved the immediate issue; the disclosure preserves the buyer’s right to evaluate the underlying condition.

Alterations and unpermitted improvements: The SPQ asks sellers to identify improvements made during their ownership, distinguish between permitted and unpermitted work, and note whether work was done by licensed contractors. This is a more structured inquiry than the TDS, which asks only whether the seller is aware of unpermitted work. The SPQ asks sellers to walk through their ownership history and account for what was done and under what authority.

Neighborhood and boundary conditions: The SPQ includes specific questions about neighbor disputes, easements, encroachments, shared wells or driveways, and boundary disagreements. A fence that’s six inches over the property line. A driveway that crosses the neighbor’s parcel under an informal arrangement. An easement for utilities that the seller has never been asked to produce documentation for. These are the details that produce litigation when they go undisclosed.

Pest and termite history: The SPQ asks about prior pest inspections, treatments, and known infestations. A property that has had two termite treatments in the past decade discloses a different history than a property that has never been treated. Buyers benefit from knowing that history when they evaluate a current pest report.

Leases, rentals, and occupancy: If the property has been rented, the SPQ asks for detail: lease terms, current occupants, any pending or past eviction proceedings. For buyers acquiring a property with tenants in place, this is not supplemental information. It is central to the transaction.

 

The TDS asks whether something is broken. The SPQ asks when it broke, what the seller did about it, and what they know about the history.

 

Categories That Come Up Frequently on the Monterey Peninsula

The Peninsula’s combination of coastal geography, hillside topography, and older housing stock produces a specific set of SPQ disclosures that buyers should expect to see.

Water intrusion and drainage in hillside properties: Properties in Carmel Highlands, hillside Carmel, and the canyon areas of Carmel Valley regularly carry drainage and water intrusion history. Clay soils, steep grades, and seasonal rain create conditions that most properties manage over time through various interventions. Sellers who have had drainage work done, retaining walls installed, or foundation repairs related to water should expect these to appear in the SPQ and should document what was done and by whom.

Governing body restrictions and enforcement history: Properties subject to the Pebble Beach Company’s community services district, Carmel’s municipal design review, or HOA architectural committees may have a history of compliance matters, variance requests, or enforcement actions that belongs in the SPQ. Buyers acquiring property with plans to alter, expand, or rebuild need to understand what constraints the prior owner navigated.

Prior fire damage: For properties that sustained smoke or fire damage from the region’s increasingly active fire seasons, a history of claims and remediation belongs in the disclosure package. The physical remediation may be complete; the disclosure history stays with the property.

Environmental conditions: Older Peninsula homes may have lead paint, asbestos-containing materials, or, for properties near former military or industrial sites, soil contamination concerns. The SPQ asks sellers to identify known environmental conditions. These are separate from the NHD’s statutory zone disclosures and reflect the seller’s personal knowledge of conditions that exist on the property itself.

 

Where Sellers Make Mistakes

The most common SPQ error is the same as on the TDS: treating a condition that was remediated as a condition that no longer requires disclosure. Sellers who had a roof replaced after water damage, had drainage rerouted after seasonal flooding, or had mold remediated after a leaking pipe sometimes conclude that because the problem is fixed, there is nothing to disclose. That is incorrect.

The SPQ asks about history. A repaired condition has a history. Buyers are entitled to evaluate what happened, what the remediation involved, and whether the underlying cause has been adequately addressed. A seller who discloses a past water intrusion event and provides documentation of the remediation is in a much stronger position than one who leaves it out and is confronted with the claim history after closing.

The second common error is relying on memory rather than records. Sellers who have owned a property for fifteen years may not remember every repair, every insurance claim, or every contractor who worked on the property. Gathering records, reviewing past insurance policies, and consulting with their agent before completing the SPQ is time well spent.

 

What Buyers Should Do With the SPQ

Read it carefully and read it alongside the TDS. Where the TDS discloses a known condition, the SPQ should tell you more about it. Where the SPQ discloses a history that the TDS does not reference, ask why. The two documents should be coherent.

Use the SPQ to focus your inspection. A seller who discloses prior drainage issues in a specific area of the property gives you a starting point. Ask the inspector to pay particular attention to that area and to evaluate whether the disclosed remediation addressed the underlying cause, not just the symptom.

If the SPQ raises questions the inspection cannot fully resolve, the inspection contingency period is the time to ask them. A geotechnical assessment, a structural evaluation, or a review of the building permit history can all be initiated before you remove contingencies. They cannot be un-removed after.

 

The Ruiz Group walks every seller through the TDS and SPQ before the listing goes live, and reviews both documents with every buyer before they make an offer. The disclosure package is not paperwork to get through. It is the history of the property you are buying or selling. Contact The Ruiz Group.

 

Related reading: What the Transfer Disclosure Statement Requires Sellers to Tell Homebuyers  ·  What the Natural Hazard Disclosure Actually Tells You  ·  Which Home Inspection Really Matter When Buying a Home