Property Disclosures
This topic covers latent versus patent defects, the duty to disclose material facts, and required federal environmental disclosures.
Latent and Patent Defects
A patent defect is obvious on ordinary inspection, while a latent defect is hidden and not discoverable by a reasonable inspection. Sellers and agents who know of a latent material defect must disclose it because the buyer cannot detect it. Material facts are those that affect a property's value or a buyer's decision.
Environmental and Federal Disclosures
For housing built before 1978, federal law requires a lead-based paint disclosure, the EPA pamphlet, and an opportunity to test. Other concerns include radon, asbestos, mold, and underground tanks. Some regions require flood-zone or well and septic disclosures. Many states also require a standardized seller disclosure form.