Definition of "Seller Disclosure"

The seller disclosure is a statement made in good faith regarding the condition of the home he/she is trying to sell. There is a seller disclosure form – called “Form 17” - that is required by most states in the USA and, in it, the home seller must make it known to the home buyer any known structural defects like plumbing and electrical problems, and any history of problems with flood, sinkholes or other prior relevant damages to the property and its land.

Although deliberate misrepresentation within this statement can result in liability charges, the seller disclosure is not a substitute for a home inspection, nor warrants anything.

The contents of a seller disclosure can vary from state-to-state  - sometimes from county to county! - but a typical form 17 contains information about:

  • Structural, electrical and plumbing status of the house
  • Title of the home and any ownership problems
  • Hazards like lead paint, toxic mold, asbestos, radon etc.
  • Water sources, rights and contamination
  • Flood danger and previous flood damages

Most of these forms have questions for the home seller to reply to or boxes to check with “don’t know”, so it’s normal that one detail or another slips away. Plus, a lot of times you will deal with a home seller that has no “in-person” knowledge of the home. Like an investor who bought the house to flip it, so he/she doesn’t know what it “feels” like living in there and their seller disclosure might misrepresent some details of it. That’s why, like we’ve said, a home inspector is still needed to avoid nasty surprises down the road.

Real Estate Tips:

The home inspector is a must, but a good real estate agent will go through everything within the seller disclosure and will be able to point out other non-structural red flags for you too. And the place for good real estate agents is right here! Feel free to contact the one you like the most and good luck!

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Map delineating property values over a designated area. Land value maps are usually developed by a governmental planning agency. ...

Region or locality that assesses real estate taxes on the properties located within its borders. Frequently, the local county or city is the property taxing jurisdiction which is empowered, ...

Real estate broker specializing in the listing and selling of commercial property. This property can include apartments, businesses, hotels, industrial, retail or wholesale uses. ...

Standard days when an organization is open and conducts business. Business days exclude weekends and holidays. ...

Bond whose interest is free of federal, state, or local tax in the state of the issuer. It is typically a municipal bond of estate or county agency. For example, a New York City resident ...

People often use the term in their everyday discourse, yet many wonder what the meaning of common law genuinely implies. Common law refers to a system of jurisprudence based on court ...

Accumulation of housing units deemed substitutable by homogeneous households, such as those having comparable attractiveness and usefulness. ...

Have you heard someone talking about a 35-percent rule of thumb and you nodded acknowledging but the truth is that you had NO idea what in the world a “35-percent rule of thumb” ...

Certificates that pass-through principal and interest payments to investors. ...

Popular Real Estate Questions