A seller’s property disclosure is a document that the law requires a home seller to provide to a home buyer. The property disclosure offers a full picture of the health and condition of the home. The details in this document reveal more than a home listing and open house walk-through. Before you commit to purchasing a new home, you should carefully read through the seller’s disclosures; the information provided can give help you make the best decision.

These disclosures also protect the home seller from litigation should a problem arise after the purchase is finalized. Here are a few tips to help you understand and navigate a seller’s, or property, disclosure.

What Should You Expect in a Home Seller’s Property Disclosure?

Property disclosure requirements vary by state but are typically mandated to be included as part of the home closing process. The disclosure includes a standardized list of common issues, and the seller must indicate if the property is affected by any of them by declaring “yes,” “no,” or “unknown.” There will also be a page, or pages, to elaborate on any issues and to include any other disclosures that were not otherwise listed. Lastly, the property disclosure should list any appliances (refrigerator, washer, dryer, etc.) or any other elements that are staying with the home.

What Types of Disclosures Does a Home Seller Have to Make?

There are several different types of disclosures that a seller can and should include in this document. The most common include:

• Damage, Hazards, and Faulty Systems in the Home

Anything that can cause significant damage to the home or its structural integrity or create a hazard endangering its inhabitants needs to be disclosed. Common examples of damage or hazards include termite damage, foundation problems, water damage, radon, faulty plumbing or electrical, or HVAC systems.

• A History of any Property Repairs

If there have been any past issues with the home, the repairs made to fix or correct them need to be listed in the disclosure. This list should include the problem, when and how it was fixed, whether it still requires attention, or if it could lead to additional issues in the future.

• Homeowners Association Requirements and Information

If the home being sold is a part of a homeowners association, the associated fees, rules, and contact information need to be disclosed.

• Specific Things that will, or won’t, Remain with the Property

The seller’s disclosure will list, specifically, all furniture, appliances, electronics, fixtures, and anything that will be included with the purchase of the home.

• All Existing Property Liens

A lien represents ownership rights over a property. All liens must be settled before a property can be sold. The seller needs to gain permission from the lienholder before selling, and any liens need to be disclosed to prospective buyers.

Purchasing a home is a huge, important decision, and having all the information possible can make it easier. Having the right mortgage and a team of experienced experts to help you decipher all of the aspects of the home buying process is also critically important. For over 90 years, the expert staff at Standard Mortgage (NMLS#: 44912) have been helping homebuyers purchase and refinance their homes.