Seller disclosure: what it is and how it works

Seller disclosures make buyers aware of what they're

getting in a home.

Home sellers are often nervous about how their home’s flaws will affect the sale, but here’s the thing: no home is perfect. In fact, homes on the market typically come with seller disclosure forms explaining all of their issues. A seller disclosure ensures the buyer knows what they’re getting in a home, and they protect sellers, too.

Here are the answers to your questions about seller disclosures.

1. 1. What is a seller disclosure?

   A seller disclosure, or home disclosure, is a form sellers fill out before putting their home on the market. It includes any known issues with the home, as well as any upgrades or repair work. This helps buyers evaluate the home fairly, and saves everyone from surprises during the home inspection. The exact forms used and what must be included varies from state to state, but federal law requires disclosing lead-based paint and asbestos.

2. 2. When do I complete my seller disclosure?

   A home disclosure is usually done early in the process of selling a home. Laws and common practices vary from state to state, but in some places, the seller disclosure is even attached to the real estate listing. In other places, it’s handed to any prospective buyer who asks, or shortly after the house goes under contract, but before the buyer sends their inspector over.

3. 3. What goes in a seller disclosure?

   A seller’s disclosure isn’t about a broken screen. It’s about big stuff that relates to the structural integrity of the home or quality of life. Exactly what must go on it depends on where you live. California famously has very strict home disclosure rules, but Alabama doesn’t require disclosing much at all. In general, in most places you’ll want to include the following:

   • Any permanent defects affecting the home’s structure or systems, like electrical, plumbing, or HVAC
   • Previous or current issues with the home’s structure or systems
   • Major repair work completed on the house
   • Any construction done on the house and whether or not permits were pulled
   • Health hazards such as lead paint or asbestos
   • Environmental issues like frequently noisy neighbors
   • Any bankruptcies associated with the property
   • Flood danger to the property
   • Well or water rights, depending on if the home is in an arid water or doesn’t have a municipal supply

4. How do I know which seller disclosure rules to follow.