Property Condition Report

A property condition report is a standardized form where you document the current state of every major system and component in your home before selling it. Think of it as the seller disclosure’s more detailed cousin — same purpose, more specifics.

What It Covers

Most property condition reports go room by room and system by system. Foundation, roof, siding, windows, plumbing, electrical, HVAC, water heater, appliances, garage, driveway, drainage — the form touches everything. For each item, you’ll mark whether it’s in working condition, needs repair, or has a known issue.

Some states use a property condition report as the official seller disclosure. Others treat it as a supplemental document alongside a separate disclosure form. Check your state’s requirements — your agent should know which forms are mandatory.

Why Accuracy Matters

Inaccurate or incomplete reports create legal liability. If you mark the roof as “good condition” knowing full well it leaks during heavy rain, you’re exposed to a lawsuit after closing. Courts take these forms seriously because buyers rely on them to make purchasing decisions.

The safest approach: when in doubt, disclose. Mention that water stain on the ceiling. Note the finicky garbage disposal. List the cracked window in the spare bedroom. Minor issues disclosed upfront rarely kill deals, but hidden problems discovered later absolutely do.

Property Condition Report vs. Home Inspection

The condition report captures what you know. A home inspection captures what a professional finds. Buyers will almost always get their own inspection regardless of what your report says. The inspector might find things you genuinely didn’t know about — that’s fine and doesn’t create liability.

Problems arise when the inspection contradicts your report. If you wrote “no water damage” but the inspector finds extensive mold behind a wall you recently drywalled over, that’s a red flag for concealment.

Filling It Out

Take your time with this form. Walk through the house with the document in hand and check each item honestly. If you’re unsure about something, mark it “unknown” rather than guessing. Most forms include that option for a reason.

Your selling guide has more on preparing disclosure documents, and the glossary covers related terms like seller disclosure and lead-based paint disclosure.