Property Condition Disclosure
Definition
A property condition disclosure is a written statement by the seller detailing the known condition of the property, including defects, repairs, and issues with major systems. Most states require sellers to complete this form.
Example
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.
Exam Tip
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 Disclosures Terms
Scope of Fair Housing Laws
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
Protected Classes
Protected classes are groups of people who are legally shielded from discrimination based on specific characteristics.
Consequences of Fair Housing Violations
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
State and Local Fair Housing Laws
Many states and localities have fair housing laws that expand upon the protections offered by the federal Fair Housing Act.
Lead-Based Paint Disclosure
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."
Seller's Disclosure Statement
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.
Frequently Asked Questions
Test Your Disclosures Knowledge
Practice with exam-style questions to make sure you can apply Property Condition Disclosure and other disclosures concepts.