Property Disclosures
This topic covers the duty to disclose material defects and the required federal environmental disclosures that protect buyers.
Material Defects
Sellers and agents must disclose known material defects that are not readily observable and that affect value or desirability. Whether a defect is material depends on its impact on the buyer's decision. Agents must never actively conceal or misrepresent a property's condition, and they should encourage buyers to obtain professional inspections.
Federal and Environmental Disclosures
For housing built before 1978, federal law requires a lead-based paint disclosure, the EPA lead pamphlet, and an opportunity to test. Other environmental concerns include radon, asbestos, mold, and underground storage tanks. Some areas require disclosure of flood zones or well and septic conditions. State disclosure laws vary in whether a standard form is mandatory.