What Are You Required to Disclose When You Sell Your Home?

Why do disclosure documents matter when you sell your home?

Imagine that you’re adopting a puppy from an animal shelter who is very afraid of cars. You adopt the pup, attach his leash to his collar, and set out to put him in your car to bring him to his cozy new home.

All of a sudden he starts crying and jumps into your arms and you have no idea why. You bring him back into the shelter to ask what’s going on, and they finally disclose to you that he has a fear of cars.

If the shelter had disclosed the pup’s fear of cars, you may have acted differently. You may not have adopted the pup knowing that your life revolves around driving your car to and from work, to get the kids, to run errands, or on long road trips for months at a time.

Or, you would have adopted the dog knowing full well that you’d need to walk him home the first time, and that you would need to work with him to help him conquer his fear once and for all.

It’s similar with a house. If you know your house has a large crack in the foundation, the roof leaks when it rains, or has any other issue, you need to disclose that information to the buyer before they purchase it.

If the buyer knows full well what they’re getting into with your house, it lightens your legal liability. Then, the buyer can decide if they’re willing to deal with any issues in your house or if they want to walk away completely.

What do I have to disclose when I sell my house?

Every state’s disclosure laws are different, even though the core of most disclosure statements are similar. That’s why you need to take an in-depth look at the disclosure document for your state. If you want to dive into the legal code for your state, you can also check out the disclosure laws for all 50 states.

Some states do not have a standard disclosure document but instead employ the caveat emptor or “buyer beware” rule. This rule states that it is the buyer’s responsibility to figure out if there are any issues with the home.

The caveat emptor rule does not apply if the seller lies about anything important that has happened in the home or any crucial defects within the home.

Find your state to read sample disclosure documents and to find out more about what exactly you need to disclose to the buyer when you sell your house.

• Alabama: Caveat emptor rule, unless the seller or real estate agent knows about something that would impact the health or safety of the buyer
• Alaska: Residential Real Property Transfer Disclosure Statement
• Arizona: Residential Seller Disclosure Statement
• Arkansas: Caveat emptor rule; real estate agent must “exert reasonable effort” to find any issues with the house
• California: Transfer Disclosure Statement; real estate agents cannot help fill out the form
• Colorado: Seller’s Property Disclosure (Residential)
• Connecticut: Residential Property Condition Disclosure Report
• Delaware: Seller’s Disclosure of Real Property Condition Report
• District of Columbia: Seller’s Property Condition Statement
• Florida: Florida Realtors Seller’s Property Disclosure (Residential)
• Georgia: Seller’s Property Disclosure Statement
• Hawaii: Hawaii Seller’s Disclosure Statement; real estate agents cannot help fill out the form
• Idaho: Property Condition Disclosure Form
• Illinois: Residential Real Property Disclosure Report
• Indiana: Seller’s Residential Real Estate Sales Disclosure
• Iowa: Seller Property Condition Disclosure; includes asbestos and lead paint disclosures
• Kansas: Seller’s Disclosure And Condition of Property Addendum (Residential)
• Kentucky: Seller’s Disclosure Of Property Condition
• Louisiana: Property Disclosure Document
• Maine: Sellers must provide a property disclosure statement that shares what they know about the water supply system, insulation, heating system, waste disposal system, hazardous materials, known defects, and access to the property
• Maryland: Maryland Residential Property Disclosure And Disclaimer Statement
• Massachusetts: Property Transfer Lead Paint Notification
• Michigan: Seller’s Disclosure Statement
• Minnesota: Seller’s Property Disclosure Statement
• Mississippi: Property Condition Disclosure Statement
• Missouri: Seller’s Disclosure Statement for Residential Property
• Montana: Caveat emptor rule; must disclose known mold issues and lead-based paint
• Nebraska: Seller Property Condition Disclosure Statement (Residential)
• Nevada: Seller’s Real Property Disclosure Form
• New Hampshire: Property Disclosure (Residential)
• New Jersey: Standard Form of Seller’s Property Condition Disclosure Statement
• New Mexico: Adverse Material Facts Disclosure Statement
• New York: Property Condition Disclosure Statement
• North Carolina: Residential Property and Owners’ Association Disclosure Statement; sellers can select ‘no representation’ for certain answers, which is a completely neutral response
• North Dakota: Seller’s Property Disclosure Form
• Ohio: Residential Property Disclosure Form
• Oklahoma: Residential Property Condition Disclosure Statement
• Oregon: Seller’s Property Disclosure Statement
• Pennsylvania: Seller’s Property Disclosure Statement
• Rhode Island: Real Estate Sales Disclosure Form

Editor’s Note: In February 2022, a new Multi-Unit Real Estate Sales Disclosure and Multi-Unit Addendum were released for multi-unit properties in Rhode Island. We recommend reaching out to a local real estate agent or attorney for those forms.

• South Carolina: State Of South Carolina Residential Property Condition Disclosure Statement
• South Dakota: Seller’s Property Condition Disclosure Statement
• Tennessee: Tennessee Residential Property Condition Disclosure
• Texas: Seller’s Disclosure Notice
• Utah: Seller’s Property Condition Disclosure
• Vermont: Seller’s Property Information Report
• Virginia: Residential Property Disclosure Statement; must disclose knowledge of any former mining operations
• Washington: Seller’s Disclosure Statement
• West Virginia: Caveat emptor rule; real estate agents are obligated to be honest with buyers; lead-based paint must be disclosed
• Wisconsin: Disclosures by Owners of Real Estate
• Wyoming: Caveat emptor rule; real estate agents are required to be honest with buyers; lead hazards must be disclosed

This article does not constitute legal advice. If you need legal advice, please consult a real estate attorney.

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