Key takeaways
- Most states require a written disclosure statement covering known material defects.
- Federal law requires lead-based paint disclosure for housing built before 1978.
- As-is sales generally do not eliminate the duty to disclose known defects.
- Non-disclosure claims can survive closing and result in damages and rescission.
What must be disclosed
Most states require sellers to complete a residential property disclosure statement covering structural condition, roof, systems, water intrusion, environmental hazards, boundary disputes, prior insurance claims, and known defects. The standard is generally knowledge — you disclose what you know, not what you should have investigated.
A handful of states follow caveat emptor with limited exceptions, but even those impose liability for active concealment or affirmative misrepresentation. Painting over water stains is not a gray area anywhere.
Federal requirements and special categories
For housing built before 1978, federal law requires disclosing known lead-based paint and hazards, providing the EPA pamphlet, and giving buyers a ten-day opportunity to test. Penalties for violations are substantial and enforced.
Some states address stigmatized property — deaths, criminal history, alleged paranormal activity — usually by expressly stating disclosure is not required. Others require disclosure of methamphetamine manufacture or contamination. Check your state's specific rules; see our state guides.
Liability and how to protect yourself
Failure to disclose can support claims for fraud, negligent misrepresentation, or breach, with remedies including damages, repair costs, attorney fees, and occasionally rescission. Claims frequently arise months or years after closing when the defect resurfaces.
Disclose more rather than less. A disclosed defect is priced into the transaction; an undisclosed one becomes a lawsuit. Attach documentation of repairs, keep copies of everything, and never let an agent talk you out of disclosing something you know.
Frequently asked questions
Do I disclose repairs I already fixed?
Generally yes, particularly if the repair addressed a material defect or was performed without permits. Many state forms ask directly.
What about problems I suspect but have not confirmed?
Disclose what you know, including that you observed something and did not investigate. Suspicion plus silence is the pattern that produces liability.
Does an inspection release me from disclosure?
No. A buyer's inspection does not relieve the seller's independent statutory duty.
Sources & further reading
- 42 U.S.C. §4852d, Residential Lead-Based Paint Hazard Reduction Act
- State residential property disclosure statutes
- EPA Protect Your Family From Lead in Your Home
Figures and rules change. Verify current requirements with the issuing agency or a licensed professional before acting.