Seller Disclosure
A seller disclosure is a form where you list everything that’s wrong with your home — or at least everything you know about — before the buyer commits to purchasing. It’s legally required in most states and it’s one of the most important documents in any real estate transaction.
What You Have to Disclose
Requirements vary by state, but most disclosure forms cover structural issues, water damage history, roof condition, HVAC age, plumbing problems, electrical issues, pest infestations, environmental hazards (lead paint, asbestos, radon), and any neighborhood nuisances you’re aware of.
You also need to disclose things like previous insurance claims, property line disputes, HOA violations, and whether anyone has died in the home (in some states). If your basement floods every spring, that goes on the form. If the neighbor’s dog barks at 6 AM daily — depends on your state.
What Happens If You Don’t Disclose
Hiding known defects is a lawsuit waiting to happen. If a buyer discovers undisclosed issues after closing, they can sue for repair costs, diminished property value, or even rescission of the sale. Courts generally side with buyers who can prove the seller knew about a problem and concealed it.
The standard is what you knew or should have known. That leaky pipe you “forgot” about? A judge won’t buy it if there’s water stain evidence on the ceiling.
How to Handle Disclosures
Be honest and thorough. A good disclosure actually protects you — if the buyer was informed about an issue before closing and bought the house anyway, they can’t come after you later for that same problem.
Don’t try to minimize issues. “Minor basement moisture” when you’ve had three inches of standing water is the kind of language that ends up in court depositions. State the facts plainly and let the buyer make their own judgment.
Seller Disclosure vs. Property Inspection
The disclosure covers what you know. The inspection covers what a professional finds. They’re separate documents serving different purposes. A clean disclosure doesn’t mean the buyer won’t find problems during inspection — and vice versa.
Review the full selling guide for tips on handling disclosure and inspection negotiations. The glossary also covers related terms like property condition reports and lead-based paint disclosure.