Most states require sellers to be upfront about any issues, but requirements can vary.
Even in the so-called “buyer beware” states, it’s still in the sellers’ best interest to disclose as much information as they can about their property before entering into a contract with a buyer. This process is separate from a home inspection, which most often happens between the contract signing and closing and may not uncover certain problems.
Here are a few things to know about the disclosure process:
There’s a form for that
In many states, real estate agents provide sellers with a standardized form on which they should list any material defects they know about, such as the house’s physical condition, hazardous materials like lead paint, flood risks, or legal issues such as pending city code violations. Many state governments require a specific form, while in others, real estate associations prepare the document.
The issues differ by state
Some potential problems will come up only in a few states. Colorado, for example, has a lengthy mining history and requires sellers to disclose whether a third party has the legal right to dig for minerals on the property, according to legal website Nolo.com. California requires a seller to reveal whether someone has died in the house in the past three years. Alaska asks whether a murder or suicide occurred during that time period. South Dakota also asks owners if they know whether a death or suicide has occurred on the property during the time they have owned the home.
Sellers in California have to disclose significant repairs they made, like a new roof to fix a problem such as a leak, according to the California Association of Realtors. Other states have similar requirements.
Let the buyer beware
Eight states — Alabama, Arkansas, Georgia, Massachusetts, North Dakota, Virginia, West Virginia and Wyoming — apply the legal concept of caveat emptor to home sales, according to Nolo.com. That means, roughly, that the buyer should beware that it’s up to the shopper to ask the seller questions.
“I think the thought behind that is that the buyer is the one in the best position to know what is important to them and what risk they’re willing to take,” Erin Kormann, Virginia Realtors legislative counsel, said in an interview about how her state handles the matter. “It does put it on the buyer to do their due diligence.”
That doesn’t mean sellers have no responsibility.
Certain states, such as Alabama, still require sellers to disclose material defects if they know about them, including damage caused by fire. Massachusetts requires sellers to tell buyers whether there’s a septic tank on the property.
Virginia agents provide every seller with a residential disclosure form on which they notify buyers of potential issues they should consider, without specifying problems particular to their property. Sellers in that state do have to reveal a few things, Kormann said, such as if there are pending building or zoning code violations, lawsuits over ownership, or if the house was used in the past to make methamphetamine. If the sellers become aware of something after signing a contract, she said, they still have time to disclose it before closing.
Lead paint was banned in 1978
Unlike most other hazards, lead paint disclosure is required by the federal government, regardless of how the state handles it generally. This type of paint could be present in any home built before 1978, according to the U.S. Environmental Protection Agency. Sellers must provide a form that discloses any known lead paint on the property and offer buyers a chance to conduct their own test for it.
Pest infestations are a common concern
Many states consider pest infestations, especially involving wood-damaging insects like termites and carpenter ants, to be a material defect that must be disclosed to buyers. In Michigan, even if this type of pest issue has been resolved, a seller still has to tell a buyer if they know about it, according to the Greater Lansing Multiple Listing Service.
There are other potential health hazards
A common health hazard in older houses, like lead paint, is asbestos. Many water pipes, for example, used to be insulated with this material. Many states require sellers to disclose its existence on a property so that a buyer can have a qualified professional remove it.
States often also require disclosure of the presence of radon gas, if a seller has detected it. Florida requires sellers to provide a form with specific language to buyers about the potential for radon, even if they don't know it to be an issue in their home.
In addition, sellers in many states are expected to tell buyers about mold or water damage if they know it exists on a property.
Flood risk could come in a written disclosure
If a state requires it, someone looking to buy a home near the ocean, a lake or another body of water should ask for a written disclosure of the flood risk. In 2024, North Carolina began obligating sellers to provide that information. At least 35 other states have similar rules, according to the Federal Emergency Management Agency.
The legal obligation is to tell the truth
Even in buyer-beware states, sellers and their real estate agents are usually expected to answer truthfully if a buyer or their agent asks whether an issue exists on a property. If the seller hides information about a hazard, they could be held liable for breach of contract or fraud.
