The Guide to Know Everything about Sellers Disclosure

April 11, 2022

The stakes are high when it comes to investing hundreds of thousands of dollars (sometimes even millions) in a home. So don’t get surprised if your prospective buyers do thorough research about your home to learn everything they can about a property before signing that check.

While a house listing and a walkthrough give valuable information to potential buyers, they rarely convey the entire picture. Fortunately, there is another resource available — and it is needed by the majority of states.

It's called the Seller's Disclosure, and it's used to explain the general condition of the property so that buyers may make an educated decision about whether or not to make the final commitment and buy it.

If you're thinking about selling a house, it's critical that you understand your legal obligations as a seller.

By law, home sellers are obligated to disclose these problems. Full documentation protects sellers from potential legal action for concerns that were not disclosed.

For someone who chooses to sell their house on their own using for sale by owner websites, getting access to all sellers disclosure becomes a difficult task, If you’re someone who doesn’t know much about sellers' disclosure forms, stick around for the next 6 minutes and get a detailed lowdown regarding the ins and outs of this important document.

What’s A Sellers Disclosure All About?

In real estate transactions, the seller is required to furnish the buyer with paperwork that reveals any concerns with the property that the seller is aware of that may interfere with the new owner's enjoyment of the house. This is known as a Sellers Disclosure form.

As part of the closing process, the seller provides the buyer a Sellers Disclosure. After their offer is accepted, they will be given a few days to study the information and will be able to back out of the deal if any incorrect information about the property comes to light. This may be determined by local legislation and the terms of your purchase agreement.

Do not that the Seller's Disclosure is not the same as a house inspection. In order to verify that no underlying faults with the home have been ignored and that the buyer is aware of what they're getting themselves into by buying this property, potential buyers should insist on an inspection of the property post the Seller's Disclosure.

How Does It Work?

Once your offer is accepted, you'll receive a house disclosure document; nevertheless, a sellers' disclosure prior to an offer isn't unheard of. This depends on the laws of your state; check with your real estate agent.

Irrespective of the property is being sold "as is," a seller's disclosure is still needed in that state. However, it's doubtful that the seller will cater to any repair work or remodeling pointed out during the home inspection which means that if you buy the property, you'll have to finance the repair work yourself.

Some states do not require seller’s disclosure. Furthermore, with estate or foreclosure auctions mediated by a court or sheriff, a residential property declaration may not be necessary. The state's real estate disclosure rules would outline what is necessary in these cases.

What is The Importance of a Seller’s Disclosure

A seller's disclosure form, also known as a property disclosure statement, is a document that lists all of the potential issues with your home. In most states, by law sellers are obligated to present these declarations. The objective is to safeguard buyers from buying a house with hidden flaws.

What All Needs to Be Included?

While there is a long list of things you need to include in the sellers disclosure, these are the most important things which cannot be omitted:

Repair Work

In addition to addressing completed improvements or remodeling work, Seller's Disclosure statements include a record of all past repairs done on a property—roof damage or foundation problems. They can also reveal the present state of the property, including all existing damage in or around the home that has to be repaired.

If a prospective homeowner will have to address any broken appliances or water damage, it is critical that they be informed of it so that they can financially plan to make repairs once they move in or opt to walk away from the deal if the repairs prove too costly.

Homeowners’ Safety in the Property

Any problems which could endanger the safety of the new homeowners should be pointed out. For instance, if the property is built in a region prone to floods, earthquakes or other natural calamities, new homeowners should be made aware so that they may prepare with appropriate insurance or action plans.

Pest Issues

The history of pest and termite treatment should be included in the seller's disclosures. If the property has dangerous or poisonous materials like as asbestos, radon, lead paint, or mold, it is critical for all the new homeowners to be aware of this so that they may devise a removal plan to safeguard their health.

Missing Items

If a certain real estate property lacks a "necessary" item or any essential item for a modern-day homeowner, such as a dishwasher or a water heater, sellers should also disclose such information in their statement.


Any information regarding any restrictions or limits on the property that the new homeowner will have to deal with and comply with has to be included. Outstanding liens, clearances, zoning laws, and restrictive covenants are some of the points that come under the clause of such restrictions.

Deaths in the Property

Include information relating to natural deaths, accidents, suicides, or killings that have occurred on the property. Some home buyers have legitimate phobias about owning a home that may be haunted; therefore learning about any lives lost on the property could be an essential component in an interested buyer's choice to finalize the purchase.

Issues with Neighbors

A Seller's Disclosure statement may include details about past issues the home seller had with the neighbors while living on the property. Property line conflicts, local sources of loud sounds or foul odors, or other nuisances created by residential, commercial, or industrial properties in the region are some of the points that come under this clause.

If a property is subject to Homeowners Association (HOA) rules and regulations, the home seller has to reveal information regarding the rules and regulations that the new homeowner must follow.

When Is a Seller’s Disclosure Drafted?

It is completed in the initial phases when selling a house. The laws and usual practices differ by state, but in some areas, the seller’s disclosure is even included in the real estate listing. In some regions, it's given to any potential buyer who requests for it, or immediately after the house is under contract but before the buyer sends their inspection.

Which Rules Will You Have to Follow When Drafting a Seller’s Disclosure?

You'll need to conduct some study because the seller’s disclosure rules vary by state. Your real estate agent, as well as your local housing authority, can help you out with this. A state or local real estate organization can provide forms that a homeowner may fill out, usually with yes or no questions concerning the house and work done on it.

Should You As A Seller Be Upfront About Everything?

Be completely truthful. While it may appear frightening or counter-intuitive, a thorough and upfront seller’s disclosure form might just make or break the deal. Include anything that a home inspector could unearth during inspection because if the inspector discovers flaws that were not disclosed by the seller, it might jeopardize the entire transaction—surprises not only work against you in negotiations, but they can also cause a buyer to lose faith in you.

This could leave the buyer wondering what else have you hidden from them— a sticky situation you want to avoid at all costs.

What If You Hide Some Facts or Lie in Your Seller’s Disclosure?

If you hide some facts or if you lie about some facts in your seller’s disclosure, you're committing serious fraud. Your real estate agent's license may be revoked if they knowingly mislead the facts and as for you, better lawyer up because the home buyer will sue you.

A buyer has the right to sue for deliberate misrepresentation and breach of contract. They can sue you in court for breach of contract or for the expense of repairing the problem plus extra damages.

What Does Caveat Emptor Really Mean?

Some states employ the caveat emptor rule instead of mandatory disclosures or a Sellers Disclosure form. Caveat emptor, sometimes known as "buyer beware," places the onus on the buyer to learn more about the house and anything that might impact its quality or sustainability.

If buyers reside in a caveat emptor state or are thinking about buying a house as-is they should do their homework to find out what disclosures, if any, are still necessary. They should also undergo a thorough house inspection, invest in a home warranty plan for operating appliances and systems, engage with an experienced real estate agent, and consider hiring a real estate attorney.

Final Word

Once the real estate transaction is complete and done with, the home buyer should feel confident and proud of their decision to acquire your home. You can go through Houzeo reviews to confirm that Houzeo definitely makes it easy to meet one's disclosure requirements.

Buyers can obtain a bit more clarity on whether they can move into their new house with peace of mind by examining all of the information offered in a Seller's Disclosure statement, or whether what they're about to acquire is ultimately not worth the money or the stress.

Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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