Property Disclosures
Buyers rely on accurate information. This topic covers the duty to disclose material defects, environmental hazards, and required federal disclosures.
Material Defects and Stigmatized Property
Sellers and their agents must disclose known material defects that are not readily observable and that affect a property's value or desirability, such as a chronic hidden water intrusion problem or a failing structural component. Many states require a written seller disclosure form. Whether facts such as a death on the property must be disclosed varies by state law.
Environmental and Federal Disclosures
Federal law requires that sellers and landlords of housing built before 1978 provide a lead-based paint disclosure and the EPA pamphlet, and give buyers an opportunity to test. Other hazards that may require disclosure or investigation include radon, asbestos, mold, underground storage tanks, and, in some regions, private wells and septic systems. Agents must never conceal known problems.