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A key element in precise position estimation is the ability to detect as well as to assign measurement errors. These errors may be caused by disturbances within the propagation path of the electromagnetic wave as well as by the hardware itself. In this contribution the error estimation for a time difference of arrival (TDOA) local position estimation system is discussed in detail. Scenarios are proposed to estimate path-related errors, as well as hardware-related errors. The developed algorithms, which are based on Kalman filtering techniques, are verified with measurements.