Seller Disclosure Obligations: What You Must Share

What Disclosure Actually Requires

Most states require sellers of residential property to complete a written disclosure form describing known material defects. 'Material' generally means anything that would affect a reasonable buyer's decision to purchase or the price they would pay.

Sellers are typically required to disclose what they actually know. They are not required to hire inspectors, tear open walls, or become experts on their own home. But willful ignorance is not a defense — deliberately avoiding information can be treated as if you knew it. Courts routinely find that a seller who suspected a problem and looked the other way still had a duty to disclose.

Common Categories to Address

• Roof leaks, active or repaired, and their location
• Basement or crawl space water intrusion, past or present
• Foundation cracks, settlement, or structural repairs
• Electrical, plumbing, and HVAC system problems
• Prior insurance claims, especially for water, fire, or storm damage
• Environmental issues: mold, radon, lead, asbestos, underground tanks
• Boundary disputes, easements, and unpermitted work
• Neighborhood conditions the law requires you to share, such as flood-zone status

Documenting Disclosures the Right Way

Answer every question on the disclosure form. 'Not applicable' and blank responses are red flags that invite challenge later. If you do not know the answer, say so in writing.

Keep supporting documents: repair invoices, permits, inspection reports, insurance correspondence. If a buyer later claims you concealed a defect, contemporaneous records are your best defense. Photos of completed repairs, taken with a timestamp, are one of the simplest and most powerful pieces of evidence.

What 'As-Is' Really Means

Selling 'as-is' does not eliminate your disclosure duty. It generally means you will not make repairs after inspection, not that you can hide known defects. Buyers who discover undisclosed material defects can often still pursue the seller, even after an as-is closing.

As-is language is best paired with — not substituted for — a complete, honest disclosure. Sellers who rely on 'as-is' to avoid disclosing something they know are the ones most likely to end up in litigation.

Special Situations: Estates, Trusts, and Inherited Homes

Sellers with limited personal knowledge of the property — executors, trustees, out-of-state heirs — have different disclosure obligations than long-time owners. Many states allow these sellers to disclose only what they actually know and to clearly identify the limits of their knowledge on the form.

That protection only works if the form is completed carefully and if the limits are clearly stated. Guessing, checking boxes to move things along, or asking the agent to fill it out are common mistakes that undo the protection the law intended.

When to Involve an Attorney

Talk to counsel before completing the disclosure form if you are aware of any past litigation, insurance claims, unpermitted improvements, environmental issues, or repairs you performed yourself. These are the areas where phrasing matters most.

Attorney involvement is also valuable if you inherited the property, are selling on behalf of an estate or trust, or have owned the home only briefly and have limited personal knowledge of its history.

Talk With Cornerstone Wealth & Property Law

Sellers who invest in careful disclosure up front almost always avoid post-closing disputes down the line. If you have questions about how to answer a specific disclosure item, or you are selling a home that has a complicated history, the firm can help you get it right. Reach out for a confidential consultation in English or Spanish.

Related Reading

Buyers on the other side of the transaction may find our closing basics article useful. If the sale is part of a broader life event — downsizing, relocating, settling an estate — our overview of wills and trusts explains how sale proceeds can be integrated into a longer-term plan.