Consumer Guide: Understanding Seller Disclosures in Real Estate

When it comes time to sell your home, transparency is key. One of the most important parts of the selling process is completing your seller disclosures—a legal requirement in most states that ensures buyers are informed about the property’s condition. As a REALTOR®, I help my clients navigate these requirements with confidence. Here’s what every seller should know:

What Are Seller Disclosures?

Seller disclosures are a list of known material defects or conditions that could negatively affect a home’s value or desirability. These can include:

• Past repairs

• Structural or mechanical issues

• Environmental hazards (like flood zones or radon)

• Missing systems or utilities

• Restrictions from HOAs or land-use laws

• Notable events on the property, including certain deaths (varies by state)

The specific requirements depend on your state and local laws, but the goal is the same: transparency with potential buyers. Your real estate professional can help you understand exactly what must be disclosed in your area.

Why Are Disclosures Important?

Disclosures protect both the buyer and the seller. For buyers, they provide a clearer picture of the property’s history and condition—information that could influence their decision or offer price. For sellers, being upfront helps limit future legal liability. If an issue was properly disclosed, the buyer generally cannot hold the seller responsible after closing.

Where Do Disclosures Appear?

These details are documented in a formal “Seller Disclosure Form” or “Property Disclosure Statement.” Most states offer a standard version of this form. Some states allow more discretion, but even then, it’s usually in your best interest to err on the side of full transparency.

Which Defects Need to Be Disclosed?

Every situation is unique. Your REALTOR® can help determine what must be disclosed. While not required, many sellers choose to order a pre-listing home inspection. This helps identify potential issues in advance, giving you time to make repairs and potentially increasing buyer trust and interest.

What If There’s Nothing to Disclose?

If there are no known issues, you’ll still need to complete the disclosure form and indicate that there are no material defects. When in doubt, it’s best to disclose. Even seemingly minor details, if left unaddressed, could become legal concerns later.

When Do You Need to Provide Disclosures?

In most states, disclosures are required before a buyer signs a binding purchase agreement. Some sellers choose to provide them even earlier—during showings or open houses—to streamline the process and build buyer confidence. Again, your agent will help you meet all timing requirements for your location.

What Happens If Something Isn’t Disclosed?

Failing to disclose a known defect can lead to serious consequences. Buyers may have the right to cancel the sale, or the seller may face legal action. The bottom line: honesty and clarity are the best ways to protect yourself and ensure a smooth transaction.

If you’re considering selling your home and want expert guidance through the disclosure process, I’m here to help. Let’s make sure your sale is smooth, transparent, and legally protected.