Seller's Disclosure Statement
Definition
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.
Example
A seller's disclosure form asks whether the property has ever had water damage. The seller knows the basement flooded three years ago and was repaired. The seller must disclose this history even though the problem has been fixed, because the question asks about past occurrences, not just current conditions.
Exam Tip
The seller—not the agent—should complete the disclosure form. Past problems must be disclosed even if they have been repaired. Agents should review the form for completeness but should not fill it out on behalf of the seller. Some states require the form to be provided before an offer is accepted.
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."
Property Condition Disclosure
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.
Frequently Asked Questions
Test Your Disclosures Knowledge
Practice with exam-style questions to make sure you can apply Seller's Disclosure Statement and other disclosures concepts.