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

Insurance coverage for any risk that can cause physical damage to the insured item. ...

Agreement to transfer funds to a third party. ...

Room containing a toilet and wash basin, but does not include a shower or bath tub. ...

Post-like components of wood that comprise a building frame. For example, a building code in a locality might require that studs measuring two-up-six be used for the exterior part of the ...

CE Shop has become a widely used and popular term in real estate. But what does it mean? “CE” stands for continuing education, and in the real estate business, it implies a ...

In commerce and business, margin as a general term is defined as by the difference between the amount of money spent on a product and the selling price of it. The margin usually appears as ...

Same as term REIT: Type of investment company that invests money in mortgages and various types of investment in real estate, in order to earn profits for shareholders. Shareholders receive ...

Under current tax law, real estate is depreciated under either the straight-line method or modified accelerated cost recovery system (MACRS) method. See also MACRS. ...

The number of units currently occupied in a facility, neighborhood, or city, stated as a percentage of total capacity. For example, a hotel has 80 rooms available for guests. Its average ...

Popular Real Estate Questions