When In Doubt Disclose
I have been getting a steady stream of notes from sellers who ask the same question in different ways. Do I really need to disclose this thing on the seller disclosure form. Is it important. Will it scare buyers away. Here is my short answer. If you have to ask there is a very strong chance the answer is yes.
Why Disclosure Protects You
Disclosure is not about confessing every squeak and rattle. It is about avoiding surprises that turn into disputes after closing. When you disclose clearly and in writing you:
- reduce the risk of a claim for failure to disclose a known issue
- set accurate expectations so buyers do not feel blindsided
- keep control of the story with facts and documents rather than rumors
Even in states that have limited or no mandatory seller disclosure rules I still recommend giving buyers a written statement of the property condition. It is the surest way to prevent a small concern from becoming a big problem later.
The Lawsuit That Could Have Been Avoided
I wrote a story about what happened to a client that didn’t disclose: Disclose It Now Or Defend It Later
What To Disclose
Think in categories. If a reasonable buyer would want to know it write it down.
- Water intrusion events and repairs even if fully fixed
- Mold testing or remediation and any warranties
- Roof leaks and roof repairs or replacement
- Foundation movement or structural repairs
- Plumbing clogs sewer line repairs or replacements
- Electrical problems and panel or wiring upgrades
- Pest infestations and treatments
- Insurance claims of any kind and the outcome
- Permits pulled for work and whether final inspections were approved
- Past or current disputes with neighbors or the association that affect the property
If you are unsure add a short note. Lack of certainty is fine as long as you are honest.
How To Disclose Well
- Be factual and brief. Describe what happened what was done and when
- Attach documents. Invoices permits warranties photos and inspection reports give buyers confidence
- Use dates. Month and year is often good enough
- Avoid absolute language like never or perfect. Houses are living systems
- Keep copies of everything you provide and get the buyer to acknowledge receipt
Do Not Rely On Silence Or Memory
Two weak strategies create trouble. First is staying silent because a problem seems small. Second is relying on memory months after an event. Write issues down as they occur and keep a home file with receipts and emails. When it is time to sell you will have accurate information at your fingertips.
What If Your State Has Limited Rules
Some states allow as is sales with minimal forms. That does not erase the risk of claims for fraud or misrepresentation. Courts often look at whether a seller knew about a material issue and withheld it. A short written seller disclosure paired with supporting documents is still your best protection.
Worried About Scaring Buyers Away
Strong buyers are not scared by truth. They are scared by unknowns. Clear seller disclosure plus proof of proper repairs is reassuring. It signals you are a careful owner and it keeps negotiations focused on price and timing rather than fear.
Quick Checklist Before You List
- Gather repair and maintenance records for the last five years
- Order receipts and warranties for big items like roof furnace water heater or sewer line
- Make a list of past issues and how they were resolved
- Ask your real estate agent and if appropriate your attorney to review the package
- Complete the seller disclosure slowly and carefully and keep a signed copy
Bottom Line
If you are wondering whether to disclose it you probably should. A few extra lines on a form and a couple of PDFs now are far cheaper and kinder to your nerves than a dispute months after closing.
If you have a tricky situation and want an unbiased take send me a note. If you are preparing to buy or sell anywhere in the United States I can introduce you to a vetted real estate agent in your market who will protect you through the entire process.
