Understanding seller disclosures

Key takeaways

• Most states require home sellers to disclose known material defects before closing, but the specific requirements and forms vary by state. 
• Eight states follow a "buyer beware" approach, which places more responsibility on the buyer to investigate the property, though sellers in those states are still expected to answer questions truthfully. 
• Federal law requires sellers of homes built before 1978 to disclose any known lead paint, regardless of state disclosure rules. 

Before a home sale closes, the seller is typically required to tell the buyer about known problems with the property. This process, known as seller disclosure, is one of the most important protections a buyer has during a real estate transaction, and it happens separately from a home inspection.
The logic is straightforward: a seller who has lived in a home is likely aware of issues that may not be visible during a walkthrough or even a professional inspection. A history of basement flooding, a roof that was patched after storm damage, or a neighbor's ongoing boundary dispute may not show up on an inspection report, but they can significantly affect the value and livability of the home.

Most states require sellers to be upfront about these types of issues. But what sellers must disclose, how they disclose it and how much responsibility falls on the buyer all depend on where the property is located.

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A seller disclosure is a written statement in which the homeowner identifies known problems or conditions that could affect the property's value, safety or desirability. It is meant to give buyers information they might not be able to discover on their own before they commit to the purchase.

This process is separate from a home inspection, which most often happens between the contract signing and closing. An inspection evaluates the current condition of the home's structure, systems and components. A disclosure, by contrast, draws on the seller's firsthand knowledge of the property's history: what has gone wrong, what has been repaired, what is ongoing and what could become a problem.

A home inspection may not uncover certain issues. A repaired foundation crack, for example, might look fine to an inspector but could indicate a pattern of water intrusion that the seller experienced for years. The disclosure is the mechanism through which that type of information reaches the buyer.

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In many states, real estate agents provide sellers with a standardized form on which they list any material defects they know about. A material defect is generally defined as a condition that would affect a reasonable buyer's decision to purchase the property or the price they would be willing to pay.

Common categories on a disclosure form include:

• Structural condition: Foundation issues, roof leaks, wall cracks, settling or drainage problems. 
• Systems and appliances: Age and condition of the heating, ventilation and air-conditioning system, plumbing, electrical wiring, water heater and major appliances. 
• Water and moisture: History of flooding, water intrusion, basement dampness, sump pump failures or drainage issues. 
• Hazardous materials: Presence of lead paint, asbestos, radon gas or mold. 
• Pest history: Current or past infestations of termites, carpenter ants or other wood-damaging insects. 
• Environmental risks: Flood zone designation, proximity to a landfill or industrial site or soil contamination. 
• Legal issues: Pending code violations, boundary disputes, easements or liens on the property. 

Many state governments require a specific form. In others, state or local real estate associations prepare the document. The format and length vary, but the purpose is the same: to give buyers a written record of what the seller knows.

Most states require sellers to complete a disclosure form, but the rules are not uniform. Some states have detailed, multi-page forms that cover dozens of potential issues. Others require only minimal disclosure or leave it largely to the buyer to ask the right questions.

Because disclosure laws are written at the state level, some potential problems come up only in certain parts of the country.

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. In towns like Cripple Creek, Colorado, mineral rights can be a real consideration for buyers.

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 also 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 for past repairs, particularly when the repair was done to address a defect rather than as a cosmetic upgrade.

These examples illustrate why it is important to understand your state's specific disclosure form rather than relying on general assumptions about what a seller is required to tell you.

Eight states apply the legal concept of caveat emptor to home sales, according to Nolo.com. Those states are Alabama, Arkansas, Georgia, Massachusetts, North Dakota, Virginia, West Virginia and Wyoming.

Caveat emptor translates roughly to "let the buyer beware." In these states, the responsibility for investigating a property's condition falls more heavily on the buyer. Sellers are not required to volunteer information about every known issue in the same way that sellers in full-disclosure states are.

"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."

The caveat emptor label can be misleading. Even in these states, sellers are not free to conceal known hazards or lie about the condition of the property.

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 is a septic tank on the property.

In 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.

If you are buying in a buyer-beware state, your due diligence becomes even more important. Hire a qualified home inspector, ask the seller and their agent direct questions about the property's history, and put those questions in writing so there is a record of what was asked and what was answered.

In most cases, even in caveat emptor states, sellers and their agents are expected to answer truthfully when asked a direct question. Silence is one thing; dishonesty is another.

Unlike most other hazards, lead paint disclosure is required by the federal government, regardless of how the state handles disclosures generally.

Lead-based paint could be present in any home built before 1978, according to the U.S. Environmental Protection Agency. In that year, the federal government banned the use of lead-based paint in residential properties because of its health risks, particularly to young children.

Under federal law, sellers of homes built before 1978 must:

• Provide buyers with a disclosure form identifying any known lead-based paint or lead-based paint hazards on the property. 
• Give buyers a copy of the EPA pamphlet "Protect Your Family From Lead in Your Home." 
• Allow buyers a 10-day period to conduct their own lead paint inspection or risk assessment, unless the buyer waives this right in writing. 

This requirement applies in every state, including buyer-beware states. If a seller knows that lead paint is present and fails to disclose it, they can face federal penalties in addition to any state-level consequences.
For buyers, the practical takeaway is simple: If the home was built before 1978, ask about lead paint and consider having it tested, especially if you have young children or plan to do renovation work that could disturb painted surfaces.

In most states, yes. 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.

The reasoning is that these pests can cause structural damage that is expensive to repair and difficult to detect without a specialized inspection. A termite infestation that has been active for years may have compromised load-bearing beams, floor joists or other structural elements that are hidden behind walls or under flooring.

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. This is an important distinction: Disclosure is not limited to active infestations. Past problems that have been treated may still need to be reported if the seller was aware of them.

Buyers should ask specifically about pest history, including whether the home has ever been treated for termites, carpenter ants, carpenter bees or other wood-destroying organisms. If the seller or their agent says there is no history of pest issues, get that answer in writing as part of the disclosure record.

Beyond lead paint and pests, several other potential health hazards may need to be disclosed depending on the state.

Asbestos is a common concern in older homes. It was widely used in building materials through the mid-20th century, including insulation around water pipes, floor tiles, ceiling tiles and roofing materials. When asbestos-containing materials are disturbed, they can release fibers into the air that pose serious health risks.

Many states require sellers to disclose the known presence of asbestos on a property so that a buyer can have a qualified professional assess it and, if necessary, arrange for safe removal or containment.

Radon is a naturally occurring radioactive gas that can seep into homes through cracks in the foundation, gaps around pipes and other openings. Long-term exposure to elevated radon levels is a known health risk. The gas is colorless and odorless, which means it can only be detected through testing.

States often require sellers to disclose the presence of radon if they have detected it. Florida takes a different approach and requires sellers to provide a form with specific language to buyers about the potential for radon, even if they do not know it to be an issue in their home. This means Florida buyers receive a radon warning as a standard part of the transaction, whether the seller has tested for it.

If you are buying in an area where radon is common, consider ordering a radon test during the inspection period even if the seller has not reported elevated levels. Testing is relatively inexpensive, and mitigation systems can reduce radon levels effectively if a problem is found.

Sellers in many states are expected to tell buyers about mold or water damage if they know it exists on a property. Mold can develop behind walls, under flooring and in other concealed areas after water intrusion events like roof leaks, pipe bursts or flooding.

Even if the mold has been remediated, the underlying cause matters. A buyer should ask whether the property has experienced water intrusion, how it was addressed and whether the mold was professionally removed. Recurring moisture problems can lead to recurring mold growth, and a one-time cleanup may not solve the issue permanently.

In many states, yes. If a property is located in or near a flood zone, the seller may be required to provide a written disclosure of that risk.

In 2024, North Carolina began obligating sellers to provide flood risk information to buyers. At least 35 other states have similar rules, according to the Federal Emergency Management Agency.

For buyers, flood risk is not just a safety issue. It affects insurance costs, which can be substantial for properties in designated flood zones. A home in a high-risk flood area will typically require a separate flood insurance policy, which is not included in a standard homeowners insurance plan.

If you are considering a property near the ocean, a river, a lake or another body of water, ask for a written disclosure of the flood risk and review the property's FEMA flood zone designation. You can also check flood maps on FEMA's Flood Map Service Center to see whether the property falls within a Special Flood Hazard Area.

Even if the seller says the property has never flooded, that does not mean it is not at risk. Flood patterns can change over time due to development, climate conditions and changes to drainage infrastructure.

These two steps serve different purposes, and one does not replace the other.

A seller disclosure is a written statement from the homeowner about what they know. It draws on their experience living in the home: repairs they have made, problems they have encountered, conditions they are aware of. It is based on the seller's knowledge, not a professional evaluation.

A home inspection is a professional assessment of the home's current condition, conducted by a licensed inspector. The inspector examines the structure, roof, foundation, electrical system, plumbing, HVAC and other components and produces a written report of their findings.

The two are complementary. A disclosure might reveal that the basement flooded twice in the past five years, which an inspector might not be able to determine from a single visit on a dry day. Conversely, an inspector might identify a failing HVAC system that the seller did not realize was nearing the end of its useful life.

Neither document is a guarantee. A seller may not be aware of every defect, and an inspector cannot see behind walls or under foundations without invasive testing. But together, the disclosure and the inspection give the buyer the most complete picture of the property's condition before closing.

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. Hiding information about a known hazard or defect can have legal consequences.

If a seller conceals a material defect that they knew about at the time of the sale, the buyer may have grounds to pursue a claim for breach of contract or fraud. The specifics depend on the state, but the general principle holds across most jurisdictions: A seller who lies or intentionally withholds information about a known problem can be held liable.

This is why documentation matters on both sides of the transaction. Sellers should complete their disclosure forms thoroughly and honestly, and buyers should keep copies of all disclosure documents, inspection reports and written communications with the seller or their agent. If a problem surfaces after closing that was clearly known to the seller before the sale, those records become the basis for any legal action.

Buyers who suspect a seller failed to disclose a known defect should consult a real estate attorney in their state to understand their options and the applicable statute of limitations for filing a claim.

Timing varies by state. In many states, the seller provides the disclosure form before or at the time the buyer makes an offer. In others, the disclosure is delivered after the offer is accepted but before closing. Some states allow the buyer to cancel the contract within a certain number of days after receiving the disclosure if the information changes their assessment of the property. Ask your real estate agent about the disclosure timeline in your state so you know when to expect it and what your options are after you receive it.

Generally, no. Disclosure requirements apply to defects the seller is aware of. A seller is not expected to hire a professional to inspect the property or to investigate conditions they have never encountered. However, if a reasonable person in the seller's position would have known about the problem, such as a basement that floods every spring, claiming ignorance may not hold up. Courts in some states evaluate disclosure disputes based on what the seller knew or should have known.

In some states and in certain types of transactions, yes. For example, properties sold "as-is," at foreclosure auctions or through estate sales may not include a standard seller disclosure. In these cases, the buyer assumes more risk and should rely more heavily on their own inspection and research. Even in an as-is sale, the seller is still generally prohibited from actively concealing known defects or lying about the property's condition.

No. A seller disclosure is a written record of what the seller knows about the property. A home warranty is a service contract that covers the cost of repairing or replacing certain systems and appliances after the sale. Some sellers offer a home warranty as part of the transaction to give buyers added confidence, but it does not replace the disclosure. The warranty covers future breakdowns; the disclosure addresses known existing conditions.

Start by reviewing your copy of the seller's disclosure form and comparing it to the issue you discovered. If the defect appears to be something the seller would have known about, document the problem with photos, contractor estimates and any other evidence. Then consult a real estate attorney in your state. Depending on the circumstances and your state's laws, you may be able to pursue a claim for breach of contract, fraud or rescission of the sale. Time limits for filing these claims vary, so it is important to act promptly.

If you are currently searching for a home, browse homes for sale on Homes.com.

This updated article was originally reported by David Holtzman.