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Seller Disclosures are about transparency - 7/9/2025

When selling a home, full transparency is key. Seller disclosures provide potential buyers with crucial information about the condition of the property, ensuring a fair and informed transaction. Understanding what must be disclosed and why it matters can help protect both buyers and sellers from unexpected issues down the road.

Seller disclosures are legal documents that outline any material defects in the property such as issues that could negatively impact its value or safety. While specific disclosure requirements vary by state and local law, common disclosures include:

  • Past or present structural defects
  • Completed repairs or renovations
  • Natural hazards (flood zones, earthquake risks, etc.)
  • HOA rules and restrictions
  • Land-use limitations
  • Missing essential systems or features
  • Prior property damage
  • Any known deaths on the property (where required by law)

Seller disclosures are important and serve a dual purpose:

  1. For Buyers: They help potential buyers assess the property's condition before making an offer, reducing the likelihood of surprises after closing.
  2. For Sellers: Providing full and accurate disclosures can help protect sellers from legal liability. By documenting known issues upfront, sellers reduce the risk of future disputes that could lead to costly lawsuits.

Most states require sellers to complete a Seller Disclosure Form or Property Disclosure Statement. These standardized documents vary in detail, with some states mandating extensive disclosures while others allow sellers to disclose conservatively. Your agent will guide you in completing the form accurately.

The exact defects that require disclosure depend on state regulations, but common items include:

  • Foundation issues or structural damage
  • Plumbing or electrical problems
  • Appliances not working properly
  • Roof leaks or aging systems
  • Pest infestations
  • Environmental hazards (mold, asbestos, radon)

While not mandatory, sellers may choose to conduct a pre-listing home inspection to identify potential red flags before listing. Addressing repairs in advance can increase buyer confidence and potentially lead to stronger offers.

If no material defects exist, a seller can state this on the disclosure form. However, if there's any uncertainty, it's always best to disclose. Failing to do so could lead to legal repercussions if an issue arises after closing.

In most states, disclosures must be presented before a buyer signs a binding contract. Some sellers opt to disclose earlier, such as during showings or open houses, to establish trust and set buyer expectations. Your agent can confirm the appropriate timing based on local regulations.

Withholding required disclosures can result in serious consequences, including:

  • A buyer canceling the sale
  • Legal action against the seller
  • Financial damages or required repairs at the seller's expense

Honesty and transparency are the best policies when it comes to seller disclosures.

Seller disclosures are a vital part of the home-selling process, offering protection for both buyers and sellers. If you're preparing to sell, work closely with your real estate professional to ensure you meet all legal requirements. By providing full and accurate disclosures, you can foster buyer confidence, avoid legal issues, and facilitate a smoother home sale.

For guidance on navigating seller disclosures, contact your trusted real estate professional today!

Karen Degney CRS, CNE, SFR, CDPE Sierra Sothebys International Realty Reno-Truckee-Incline Village-Tahoe, NV (775) 233-5521 NV. BS.0017798 | CA 01280552 Karen has worked as a full time real estate professional since 1999, has owned and operated 3 real estate brokerages in the Lake Tahoe area, is a Certified Previews Luxury Agent, and holds a Brokers license in Nevada and California. Her extensive background in property management provides crucial knowledge and expertise while working with investors. She is a Certified Residential Specialist Member (CRS) and currently holds designations in Property Management, Short Sales and Foreclosure Resources (SFR), Relocation, Certified Distressed Property Expert (CDPE), Certified Negotiation Expert (CNE) and is Veterans Association of Real Estate Professional (VAREP). The CRS Designation is held by only 3% of all REALTORS® nationally and is the highest designation a residential REALTOR® can hold. Also, and very important is the designation of Certified Negotiation Expert held by only 1% of all REALTORS® Nationwide. With these designations, combined with 20+ years of full time Real Estate employment, Karen has an edge that benefits you. She has the knowledge of how to obtain a higher sales price and better terms for you as a Seller, and as a Buyer, she has the skills to negotiate for the best price and terms on your pur- chase. A Message From Karen: My motto is “Never, Never, Never Give Up!” After all these years in Real Estate, it is still my passion. I still get a thrill working with first time home buyers as well as working with my return clients and the many referrals which I am privileged to re- ceive. I love my job and have worked full time in real estate since 1999. I am a highly motivated REALTOR® with the goals of my clients as my highest priority. I continue to attend educational opportunities and expand my knowledge to keep ahead in my pro- fession and learn of new technology to best serve my clients. I hope to put my experience to work for you, “A Tradition of Trust, Your REALTOR® for Life” Contact Me Visit my Website Send a Referral Subscribe to Newsletter