Seller’s Disclosure Basics

State law requires home sellers to declare all “known material defects” their property has. Translated to English, this means that sellers must inform home buyers of any issues their home has that they know about. If the roof leaks they have to inform buyers it leaks. If the plumbing for a toilet tends to get clogged they have to inform buyers.

Disclosure by the sellers is required by law because it’s the right thing to do and because it promotes trust. Additionally, disclosure helps shield the seller from legal liability. If the roof leaks and the seller informed the buyer that it leaks, then the seller is protected from legal liability. However, if the seller knows the roof leaks but does not inform the buyer then the buyer could sue the seller for the cost of the roof replacement and additional damages.

To meet the state requirements the seller will complete a “Seller’s Disclosure and Condition of Property Addendum”. This document includes all disclosures the seller must make and also resolves who keeps appliances (frig, stove, washing machine, etc.).

Disclosure Categories

Disclosure categories cover everything state law requires sellers disclose. This includes:

• The type of construction

• Land and drainage condition

• Roof condition

• Presence of termites or other pests

• Condition of the basement and/or foundation

• Where any additions or remodels performed, and was the work permitted

• Condition of the plumbing systems

• Condition of the heating and cooling system

• Condition of the electrical system

• Any known hazards associated with the property (toxic substances, radon, mold, etc.)

• Homeowner’s association status

Fixtures, Equipment, and Appliances

The seller will also declare their intent to leave or take items at the property. Fixtures are anything connected to the property such as lights and fans. Equipment and appliances include the refrigerator, stove, washer and dryer, outdoor grills, etc.

This portion of the Seller’s Disclosure is shown below. For each item, the seller will label it using one of the following:

• OS – The item is operating and staying with the property

• EX- The item is staying with the property, but the seller will not make repairs if it is broken

• NA – The item is not applicable

• NS – The seller is taking the item with them

Part of the sellers disclosure coving fixtures, equipment, and appliances.