Disclosure is the part of selling where honesty and self-interest fully align: the seller who discloses a known defect prices it in once; the seller who conceals it can pay for it for years — in repair damages, legal fees, and in some cases fraud claims that survive even an 'as-is' sale. Here's what the law generally requires and how to handle the awkward categories.
The Core Principle: Known Material Defects
Nearly every state requires sellers to disclose known material defects — conditions that affect the property's value or desirability and aren't obvious to a buyer. 'Known' is the operative word: you're not required to hire inspectors to hunt for problems, but you cannot stay silent about what you know, and you can never actively conceal (paint over the water stain, shelve over the crack).
What Standard Disclosure Forms Cover
- Water: roof leaks (past or present), basement/crawlspace intrusion, plumbing leaks, drainage problems
- Structure: foundation cracks or movement, settling, prior structural repairs
- Systems: HVAC, electrical, plumbing, water heater condition and known issues
- Environmental: mold, radon test results, asbestos, buried oil tanks, contamination
- Pests: termite or wood-destroying insect history and treatments
- Additions and repairs: unpermitted work, insurance claims, prior repairs and who did them
- Legal: boundary disputes, easements, HOA assessments, liens, pending litigation
For homes built before 1978, federal law requires a lead-based paint disclosure, the EPA pamphlet, and a 10-day window for the buyer to test if they choose. This applies in every state, no exceptions, with penalties that make it the one disclosure nobody should ever skip.
State Variance Is Enormous
A few states remain closer to 'caveat emptor' (buyer beware) with minimal statutory forms, while states like California require layered disclosures — natural hazard zones, deaths within three years, neighborhood nuisances, and more. Flood history disclosure has expanded rapidly in recent years. Your listing agent or a local real estate attorney will have the current forms; out-of-date internet forms are a classic FSBO mistake.
The Awkward Categories
- Deaths on the property: disclosure rules vary widely; some states require disclosure of deaths within a lookback window, many require honest answers if asked directly
- Repaired defects: generally disclose the history — 'basement leaked in 2023, regraded and sealed, dry since' is a good disclosure, not a bad one
- Neighbor problems: barking dogs and boundary feuds can be material in some states if they're documented disputes
- Stigmatized property (crime, hauntings): rules vary; when in doubt, answer direct questions truthfully
The 'As-Is' Myth
'As-is' means you won't repair or credit anything — it does not switch off disclosure duties. In every state with disclosure requirements, an as-is seller must still disclose known material defects, and fraud claims for active concealment survive as-is clauses everywhere. As-is manages your repair exposure, not your honesty obligations.
Post-sale disclosure lawsuits are the most common legal action against home sellers, and they typically surface the first winter (heating fails, basement leaks). The financial math is brutal: the defect discounted your price by thousands; the lawsuit costs tens of thousands. Disclose, price it in, and sleep well.
Fill out the form yourself — never delegate answers to your agent — answer from actual knowledge, write 'unknown' where you genuinely don't know (don't guess), and keep a copy of everything the buyer signed. If a deal dies after an inspection reveals something new, update the disclosure for the next buyer; you know it now.
Disclose what you know, conceal nothing, use your state's current forms, and treat 'as-is' as a repair posture rather than a legal shield. Honest disclosure is cheap; discovered concealment never is.