Seller disclosure

A seller disclosure is a state-required statement from the seller listing known material defects in the property. The form is filled out by the seller (not the agent), signed under representations of accuracy, and provided to the buyer at a state-mandated point in the transaction, typically before contract acceptance or early in the under-contract period.

How it works: each state defines its own form. Common categories of disclosure include the age and condition of major systems (roof, HVAC, plumbing, electrical), known water damage or mold, foundation issues, lead-based paint (federally required for homes built before 1978), pest infestations, environmental hazards, easements and encroachments, neighborhood nuisances, and any deaths on the property in some states. Some states require very detailed disclosures; others require relatively little.

Why it matters: the disclosure form sets the baseline of what the seller has affirmatively represented about the property. If a defect known to the seller wasn't disclosed and shows up after closing, the buyer may have legal recourse against the seller, typically in the form of a misrepresentation claim. The disclosure also sets up the inspection conversation: items disclosed are presumed known to the buyer, while items the inspection finds that weren't disclosed can become negotiation leverage.

Common gotcha: "as-is" sales don't typically waive seller disclosure obligations. The seller still has to disclose known defects under most state laws, even when the buyer agrees to take the property as-is. Sellers tempted to skip the disclosure to keep the sale clean often create more legal exposure than they avoid; buyers who don't read the disclosure carefully miss information that should affect their offer.