What are seller disclosure requirements?
Common Disclosure Requirements
Most states require sellers to disclose known issues that could affect the property's value or safety. This includes structural problems, water damage, pest infestations, mold, lead-based paint (federal requirement for pre-1978 homes), and pending lawsuits. Some states also require disclosure of neighborhood nuisances like noise or crime.
Disclosure usually happens before the purchase agreement is signed, but timing can vary. In off-market deals, sellers may not have a standard form, so you should ask for written disclosures and include a contingency in your contract.
- Structural defects (foundation, roof, walls)
- Water damage, leaks, or flooding history
- Presence of lead-based paint (federal law)
- Pest infestations (termites, rodents)
- Mold or hazardous materials (asbestos)
- Legal issues (liens, easements, zoning violations)
State-by-State Differences
Disclosure laws vary widely. California, for example, requires a comprehensive Transfer Disclosure Statement (TDS). Texas uses a Seller's Disclosure Notice. Some states like Alabama follow caveat emptor, meaning sellers have no duty to disclose unless asked. Others require disclosure only if the buyer asks.
Even in caveat emptor states, sellers cannot commit fraud by actively hiding defects. If you're unsure, check your state's real estate commission website or consult a local attorney.
What to Do If Disclosures Are Missing
If the seller won't provide disclosures, you can still protect yourself with a thorough inspection and title search. Include a contingency in your purchase agreement that allows you to cancel if undisclosed issues are found. In some states, you can sue for fraud if the seller knowingly concealed a defect.
Always get disclosures in writing. Verbal statements are hard to prove and may not be legally binding.
Common mistakes
- Assuming all states require the same disclosures—they don't, and some follow caveat emptor.
- Not asking for disclosures in writing, which makes it harder to prove what the seller knew.
- Relying solely on seller disclosures instead of getting an independent inspection.
