The property condition disclosure typically covers the roof, foundation, plumbing, electrical, HVAC, water and sewer systems, pest infestations, environmental hazards, and structural issues. Sellers must disclose what they KNOW—they are not required to hire an inspector or investigate beyond their personal knowledge. However, sellers cannot misrepresent or conceal known defects. Failure to disclose known issues can result in lawsuits for fraud, misrepresentation, or contract rescission.
A seller completes the property condition disclosure form indicating that the basement has experienced minor water intrusion during heavy rains and that the furnace is 18 years old. The buyer can use this information to request repairs, negotiate the price, or decide whether to proceed with the purchase.
Sellers must disclose what they KNOW—they don't have to investigate or hire inspectors. Misrepresentation or concealment of known defects can result in rescission and damages. The disclosure protects both buyers (by providing information) and sellers (by documenting what was disclosed). "As-is" sales may not eliminate disclosure requirements.
Related Terms
Related Concepts
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
The Lead-Based Paint Disclosure is a federally mandated disclosure required for all residential properties built before 1978. Sellers and landlords must disclose known lead-based paint hazards and provide the EPA pamphlet "Protect Your Family From Lead in Your Home."
A seller's disclosure statement is a form that sellers complete to inform buyers about the condition and history of the property, including known defects, past repairs, insurance claims, and environmental issues.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
Megan's Law requires states to make information about registered sex offenders available to the public. Some states require real estate agents to inform buyers about the availability of sex offender registries.
Frequently Asked Questions
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