Disclosures and Environmental Issues
This chapter covers what must be disclosed to buyers and the environmental hazards licensees should recognize. Proper disclosure protects consumers and shields licensees from liability for misrepresentation.
Material Defect Disclosure
Sellers and their agents generally must disclose known material defects that could affect a property's value or a buyer's decision. A latent defect is a hidden problem not readily observable during a normal inspection, and it must be disclosed. Silence about a known serious defect can expose a licensee to liability for misrepresentation. Many states, including Pennsylvania, require a standardized written seller disclosure form for most residential resales.
Lead-Based Paint and Federal Rules
The federal Residential Lead-Based Paint Hazard Reduction Act requires sellers and landlords of housing built before 1978 to disclose known lead hazards, provide an EPA pamphlet, and give buyers a ten-day period to test. This applies to most pre-1978 residential transactions nationwide. Lead exposure is especially dangerous to young children. Compliance is mandatory regardless of state law.
Common Environmental Hazards
Radon is a naturally occurring radioactive gas that can accumulate in homes and is a leading cause of lung cancer; testing and mitigation are common concerns, and parts of Pennsylvania have elevated levels. Asbestos, once used in insulation and flooring, poses a risk when disturbed. Underground storage tanks, mold, and contaminated groundwater are additional hazards. Licensees are not expected to be experts but should recommend qualified professionals when hazards are suspected.