Property Disclosure

A property disclosure is a document the seller fills out that identifies known issues with the home, such as past water damage, roof repairs, foundation problems, or HVAC issues they're aware of.

Sellers are generally required to disclose known material defects, meaning problems that would affect a reasonable buyer's decision. What must be disclosed and when it must be provided varies by state.

The disclosure is not a substitute for an inspection. Sellers can only disclose what they know; they're not required to know what they don't know. An inspection discovers what the seller may not have disclosed (or didn't know about).

Reading the property disclosure carefully before making an offer, or at minimum very early in due diligence, can reveal important information about the property's history and condition.

Red flags in a disclosure (water intrusion, past foundation movement, unpermitted work) aren't necessarily deal breakers, but they do tell you what to investigate closely during the inspection. They also set expectations about what you're purchasing.

A seller discloses that the home had a water intrusion issue in the basement three years ago, which was remediated. The buyer's home inspector pays close attention to that area during the inspection and finds no active moisture issues. The buyer feels comfortable moving forward, knowing the history.

"A clean disclosure means there are no problems."

A disclosure reflects what the seller knows, not everything that might be wrong with a home. Structural issues the seller didn't know about, deferred maintenance they've lived with, and systems that failed after move-in won't appear on a disclosure. The inspection is your primary tool for discovering unknown conditions.