Definition of Seller Disclosure
A Seller Disclosure is a set of documents completed by the seller of a home, listing any known issues with the property and any remodel projects completed during the time they owned the home. In most states, the seller is required to provide this disclosure within a few days of mutual acceptance. In turn, the buyer has a certain number of days to review the disclosures. This information is useful but is no substitute for an inspection by a licensed inspector.
In most cases, prospective buyers can ask their agent for access to the Seller Disclosure for the home before making an offer. However, when buying bank-owned homes, buyers won't receive these documents since the bank isn't required to provide details about the condition of the home. Every transaction is different, and the Purchase and Sale Agreement dictates the specifics.
Examples of Seller Disclosure issues include:
- Structural, electrical, or plumbing issues
- Lead paint, radon, asbestos, or toxic mold
- Pests or wood-destroying insects
- Flood or wildfire danger
- Toxins in the local soil or water
- Water rights (in dry or desert climates)