Seller Disclosure Form

A Seller Disclosure Form in the United States sets out the facts the maker formally declares for the purpose it serves.

The federal statutory foundation for seller disclosure is the Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. § 4852d, which requires sellers of residential properties built before 1978 to disclose any known lead-based paint hazards, provide buyers with any available records and reports, deliver the EPA pamphlet 'Protect Your Family from Lead in Your Home,' and allow buyers a 10-day opportunity to inspect for lead-based paint. The federal lead disclosure rule is administered jointly by the EPA and HUD under 24 C.F.R. Part 35 and 40 C.F.R. Part 745.

Beyond the federal lead disclosure requirement, seller disclosure obligations are governed by state law, and the variation among states is substantial. California's Transfer Disclosure Statement (TDS), required under California Civil Code § 1102, is one of the most complete mandatory disclosure regimes in the United States. The California TDS requires sellers to disclose the condition of the property's structure, foundation, roof, plumbing, electrical systems, HVAC, and all appliances included in the sale, as well as environmental hazards, flooding and drainage history, neighborhood nuisances, and legal encumbrances. California Civil Code § 1102.3 requires the TDS to be delivered as early as practicable before transfer of title.

Texas Property Code § 5.008 requires sellers to disclose the condition of all major systems (HVAC, electrical, plumbing, structural), the presence of lead paint, asbestos, radon, and other environmental hazards, and any flooding history for homes within FEMA-designated Special Flood Hazard Areas. Texas's disclosure form is prescribed by the Texas Real Estate Commission (TREC). Florida Statutes § 689.261 imposes a common-law duty of disclosure for material facts that are not readily observable and not known to the buyer, interpreted broadly by Florida courts following Johnson v. Davis, 480 So.2d 625 (Fla. 1985). New York Property Law § 462 requires disclosure of 36 specific items on the Seller Property Condition Disclosure Statement (PCDS), including structural defects, environmental hazards, and legal encumbrances.

A small number of states — including Alabama, Arkansas, and North Dakota — do not mandate a specific written disclosure form for all residential transactions, though common-law fraud and misrepresentation claims still apply to sellers who knowingly conceal material defects.

A Seller Disclosure Form is needed in virtually every residential real estate sale in the United States, regardless of whether the applicable state mandates a specific form, because the duty to disclose known material defects exists under common law even absent a statutory form requirement.

Primary residence sales are the most common context. A homeowner selling a single-family home through a real estate agent listed on the Multiple Listing Service (MLS) — whether through RE/MAX, Coldwell Banker, Keller Williams, or an independent broker — will be required by the listing agreement and by state law to complete a disclosure form before accepting offers. Most buyers' agents require disclosure before their clients submit an offer, and most purchase contracts specify that the seller's disclosure is a condition of the buyer's due diligence period.

For-sale-by-owner (FSBO) transactions carry the same disclosure obligations as agent-assisted sales in states that mandate disclosure forms. FSBO sellers who use platforms like Zillow, Homes.com, or FSBO.com must provide state-mandated disclosures just as a listed seller would. Failure to disclose known defects in an FSBO transaction exposes the seller to the same fraud and misrepresentation liability as an agent-assisted transaction.

Condominium and townhouse sales require disclosure of both the individual unit's condition and any material facts about the homeowners association (HOA) — pending special assessments, litigation involving the association, deferred maintenance in common areas, or reserve fund shortfalls. California Civil Code § 1134 requires condominium sellers to deliver HOA financial information as part of the disclosure package. Florida Statutes § 718.503 requires condo sellers to provide the buyer with the declaration of condominium, articles of incorporation, bylaws, rules and regulations, and a copy of the most recent year-end financial report.

Estate sales and probate sales present particular disclosure challenges because the personal representative or executor may have limited knowledge of the property's condition. Many states exempt probate sales from seller disclosure requirements — California Civil Code § 1102.2 exempts sales by a fiduciary in their official capacity — but some states require disclosure of any known defects even in estate sales.

Short sales and foreclosure-related sales require disclosure of any seller knowledge of the property's defects. Bank-owned (REO) properties are typically sold 'as-is' with no seller disclosure because the bank has no personal knowledge of the property's condition, but buyers must independently investigate through inspections.

New construction sales by builders are generally exempt from seller disclosure statutes because the builder provides statutory warranties under state new home warranty laws (e.g., Texas Property Code § 430, Illinois New Home Warranty Act, 765 ILCS 730), which cover structural defects, systems defects, and workmanship for defined warranty periods.

A complete Seller Disclosure Form for US residential real property must address all categories of material conditions, defects, and encumbrances that could affect the buyer's valuation or decision.

The property identification and seller information section states the property's full address (street, city, state, zip code), the seller's full legal name, and the date the form is completed. For properties with multiple owners, all owners should sign the disclosure form.

The structural and exterior section covers the condition of: the foundation (type — slab, crawl space, basement — and any cracks, settling, or drainage problems); the roof (age, material, any known leaks or repairs); exterior walls (construction type, any water intrusion or damage); attached and detached structures (garage, shed, deck, patio — condition and any known defects); driveway and walkways (cracks, drainage, settlement); windows and doors (operation, seals, any broken glass or water intrusion).

The systems and mechanical section covers the condition and age of: HVAC (heating and air conditioning systems, ductwork, last service date, known defects); plumbing (water supply source — municipal or well; water heater type and age; any known leaks, low pressure, or drainage problems; sewer connection — municipal or septic; any known sewer backups or septic system issues); electrical (panel amperage, any known wiring issues, GFCI outlets in required locations, any recalls or deficiencies); and any other mechanical systems included in the sale (pool, spa, sprinkler systems, security systems).

The water and moisture section specifically addresses flooding and drainage history — one of the most contentious areas in residential disclosure litigation. The form should ask: Has the property ever flooded or experienced water intrusion in the basement, crawl space, or living areas? Is the property located in a FEMA-designated Special Flood Hazard Area (SFHA) requiring flood insurance under the National Flood Insurance Program (NFIP)? Have any flood insurance claims been filed? Has any water damage repair been performed? Texas and Florida require disclosure of all prior flooding events and flood insurance claims, and failure to disclose prior flooding is a leading cause of post-closing litigation in both states.

The environmental hazards section discloses: lead-based paint (for pre-1978 homes, the federal Lead Disclosure Rule requires a specific addendum and EPA pamphlet delivery); asbestos (location and condition if known); radon (any testing results and mitigation systems installed); mold (any known current or prior mold conditions and remediation performed); underground storage tanks (fuel oil, heating oil, or chemical storage — known locations and any prior leaks); and any other hazardous materials or contamination on or affecting the property.

The legal and title section discloses: homeowners association membership, current dues, and any pending special assessments or HOA litigation; any easements, encroachments, or boundary disputes; any pending or threatened litigation involving the property; any deed restrictions or CC&Rs affecting use; any outstanding building code violations or unpermitted improvements; and any municipal liens or special assessments.

The seller's knowledge certification requires the seller to certify that all information on the form is accurate and complete to the best of their knowledge, that they have disclosed all known material defects, and that they are not aware of any material facts about the property not disclosed on the form. Both sellers must sign and date the disclosure. The buyer's acknowledgment section records the buyer's receipt and review of the disclosure, which is important evidence if a post-closing dispute arises about when the buyer became aware of disclosed conditions.