Seller Disclosures in Real Estate Explained

📘 What Are Seller Disclosures?

Seller disclosures are written statements that inform buyers about known issues with the property. These can include water damage, structural problems, roof leaks, or past repairs. The goal is transparency—so buyers make informed decisions before closing.

🔍 Common Items That Must Be Disclosed

Disclosure laws vary by state, but most require sellers to reveal material facts that could affect the home’s value or safety. Examples include:

• Water leaks, flooding, or mold history
• Foundation or structural defects
• Roof or plumbing issues
• Past pest infestations or termite damage
• Environmental hazards (lead paint, radon, asbestos)
• Boundary disputes or legal claims

Failing to disclose these can lead to legal disputes or loss of the buyer’s deposit.

⚖️ Legal Duties and Latent Defects

Sellers must disclose both visible and hidden (latent) defects. A latent defect is something not easily detected by a typical home inspection—like a cracked foundation hidden behind drywall or faulty wiring inside the walls.

Honesty and full disclosure protect you from post-sale liability and build buyer trust.

🚫 Consequences of Non-Disclosure

Failing to provide accurate seller disclosures can lead to:

• Buyer lawsuits for fraud or misrepresentation
• Loss of buyer deposit or deal cancellation
• State penalties or revoked real estate licenses

If a deal falls apart because of hidden issues, escrow disputes can arise over who keeps the earnest money deposit.

🏡 Stay Transparent. Stay Protected.

Brokerless helps FSBO sellers list on the MLS while meeting all disclosure requirements. Protect your transaction and your peace of mind with our flat fee MLS plans.