However, seller disclosure forms aren\u2019t a crystal ball, and some states don\u2019t even require that the forms be thorough. We\u2019ll break down seven key factors every home buyer needs to know about seller disclosures, including what problems disclosure forms often cover, how the seller disclosure protects you (and how it doesn\u2019t), and what recourse you have if your seller didn\u2019t disclose everything.<\/p>\n Don\u2019t get confused by conflicting information about seller disclosure forms you\u2019ve found online: advice on this varies because every state has their own seller disclosure laws<\/a>. These requirements not only vary between states; they can vary on the county and city level<\/a>.<\/p>\n Regardless of where you live, there are three general categories that your area\u2019s seller disclosure requirements will fall into: full seller disclosure forms, disclosure-disclaimer forms, and caveat emptor.<\/p>\n Some states have what are referred to as full disclosure laws. These seller disclosure forms require a very thorough accounting of both the home\u2019s current condition and its recent repair history.<\/p>\n Full disclosure forms are typically several pages long<\/a> and ask in-depth, multi-part questions on topics like roof age, repair history, and homeowners\u2019 association fees.<\/p>\n For example, California has some of the nation\u2019s strictest seller disclosure requirements<\/a>. In the Golden State, sellers must obtain a separate natural hazard disclosure report<\/a> in addition to filling out the state\u2019s lengthy Transfer Disclosure Statement<\/a>.<\/p>\n Some states use a disclosure-disclaimer form, which gives sellers a choice between completing a full disclosure form, or simply providing a disclaimer.<\/p>\n \u201cIn the Baltimore-metro area we use what’s called disclosure-disclaimer form. This gives the seller the ability to either fill out the three-page disclosure, answering a number of questions regarding things like the electrical, H-VAC, and any water damage,\u201d explains Greg Cullison<\/a>, a top performing real estate agent in Baltimore.<\/p>\n \u201cOr the seller can opt to simply answer the disclaimer, which is one question which asks if the house has any latent defects known to the seller. That\u2019s going to be a simple \u2018no\u2019 99% of the time.\u201d<\/p>\n Instead of seller disclosure requirements, some states apply the rule of \u201ccaveat emptor<\/a>,\u201d which is Latin for \u201cbuyer beware.\u201d This puts the onus for discovering flaws and repair issues on the home buyer.<\/p>\n Caveat emptor laws are designed to protect sellers from litigation should their buyer experience buyer\u2019s remorse after discovering a flaw they should\u2019ve discovered before closing on the property.<\/p>\n While these states expect the buyer to do their due diligence, that doesn\u2019t mean the seller is off the hook. Most caveat emptor states also have disclosure laws that prevent the seller from deceiving or misleading their buyer about the condition of the house.<\/p>\n For example, both Ohio<\/a> and Indiana<\/a> are caveat emptor states that also require sellers to truthfully complete a seller\u2019s disclosure form. Whereas Alabama’s caveat emptor disclosure rules<\/a> only allow exceptions for litigation for three reasons: 1) if the buyer and seller have a financial relationship, 2) if the seller is aware of an issue that poses a health risk, or 3) if the buyer asks direct questions about a specific flaw.<\/p>\n Not sure what your area requires as far as seller disclosures go? Find your state\u2019s disclosure form with our guide to the mandated disclosures in all 50 states<\/a>. In addition, work with a top tier real estate agent<\/a> to make sure you have accurate information on how disclosures work in your county and city.<\/p>\n The primary function of a seller disclosure form is to let the buyer know if the house has any existing defects<\/a>. The forms also provide the buyer with important information about the repair history of the home\u2019s structure and systems.<\/p>\n These disclosures cover issues that would impact the safety, livability, or value of the home, including:<\/p>\n The disclosure form may also include vital information about your home\u2019s systems that have nothing to do with damage or repairs:<\/p>\n \u201cThe disclosure form will also note if the property is on public water and sewer, or if it\u2019s on a well and septic system,\u201d explains Cullison. \u201cIf it’s on a well, the disclosure should include well yield information, and the date of the last pumping if it’s on a septic system.\u201d<\/p>\n Disclosures aren\u2019t just about health, safety, and home value; many states have disclosure forms provide a deeper look at your home\u2019s history and other pertinent details, including:<\/p>\n The disclosure form isn\u2019t just something that\u2019s nice to have, it\u2019s a legally binding document that the seller is required by law to answer honestly.<\/p>\n If information provided by the seller via the disclosure form turns out to be untrue, you may be able to take legal action against them, but only if you have your copy of that form handy.<\/p>\n And make sure that the answers are detailed and complete before closing on the home.<\/p>\n For example, let\u2019s say the seller disclosure form says that all the kitchen and laundry appliances will be staying with the house.<\/p>\n When you did your walk-through, they were all newer, luxury model, stainless steel appliances worth around $7,000. However, when you move in, you discover that the seller has swapped out the luxury models for new, basic model appliances.<\/p>\n If the seller disclosure form only lists the type of appliances without the model information, you might be stuck with the basic models unless you\u2019re willing to take legal action (see Fact #7).<\/p>\n Yes, sellers are required by law to answer the seller disclosure questions honestly. However, the seller is not required to disclose any flaws or defects that they genuinely don\u2019t know about<\/a> \u2014 or that they suspect might exist \u2014 especially if there are no obvious signs of damage or defects.<\/p>\n Sometimes sellers do unintentionally omit information they know (or should know) from their disclosure forms.<\/p>\n \u201cSellers do make mistakes, especially if you\u2019re dealing with an elderly seller. They may state something that they believe to be fact when in reality it is not accurate. That could open them up to potential litigation,\u201d explains Cullison.<\/p>\n \u201cFor example, one question asks if the air conditioning system supplies all finished rooms. A seller may believe that is 100% the case, when in reality there was an addition put on at one time and there is not a vent to that room.\u201d<\/p><\/blockquote>\n There are also scenarios where the seller may actually be exempt from completing disclosure forms \u2014 even if state law requires that sellers complete a full disclosure form.<\/p>\n Typical exemptions include foreclosure homes or estate sales that are being sold as-is. This exemption is allowed because neither the bank nor the heirs have lived in the house; they cannot be expected to have knowledge of any issues or defects.<\/p>\n Even though you\u2019ll be getting a full and honest disclosure from your seller, don\u2019t assume that\u2019s all you need to know about your future home\u2019s current health and condition.<\/p>\n You need to get a home inspection<\/a> done by a reputable home inspector \u2014 no matter how thorough the seller is on the disclosure form.<\/p>\n \u201cI would never rely on a disclosure filled out by a seller. It’s imperative that the buyer get a home inspection done, especially if the seller opts to simply provide a disclaimer rather than a disclosure form,\u201d advises Cullison.<\/p>\n \u201cYou certainly want a quality, licensed home inspector who\u2019s not going to rush through the process. A good home inspector will get on the roof, get in the attic, get in a crawl space to give the house a thorough examination and test all the systems.\u201d<\/p>\n Remember, the last time the house has had a throughout checkup was likely years ago when the current owners had their own home inspection performed. Chances are that time and age have caused fresh defects that the owner cannot be expected to know about unless there are obvious problems or visible damage.<\/p>\n Let\u2019s say the roof is nearing its expiration date<\/a>, but the seller isn\u2019t aware of any leaking issues because no water damage is visible inside the house. A good home inspector will get into the attic to spot any beginnings of water damage that the seller is understandably unaware of.<\/p>\n Turning to California again, the state may have some of the strictest disclosure laws for sellers, but buyers have a duty to inspect<\/a> as well. Failure to do so could hurt your case should you discover an undisclosed issue that your seller was legally obligated to disclose.<\/p>\n Sometimes it\u2019s clear that the seller deliberately hid defects, omitted damage, or flat-out lied on the disclosure form.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/seller-disclosures-notes-666x381.png\")
<\/a>1. Seller disclosure laws are unique to each individual state.<\/h2>\n
Full disclosure<\/h3>\n
Disclosure-disclaimer<\/h3>\n
Caveat emptor<\/h3>\n
2. Condition-of-the-home disclosures typically cover the home\u2019s existing condition, known defects, and repair history.<\/h2>\n
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3. Many disclosure forms will specify legal issues and pertinent details about your home sale \u2014 pay attention here!<\/h2>\n
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![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/seller-disclosures-paperwork-666x381.png\")
<\/a>4. Real estate disclosures are legally binding \u2014 so hang onto that form.<\/h2>\n
5. Remember: sellers can\u2019t be expected to disclose issues they don\u2019t know about.<\/h2>\n
![\"An](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/10\/seller-disclosures-inspection-666x381.png\")
<\/a>6. Seller disclosures *do not* replace the need for an inspection.<\/h2>\n
7. If a seller outright lies on a disclosure, you may be able to recover damages \u2026 but you\u2019ll have to prove a few things first.<\/h2>\n