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

The term master deed is a deed filed by a condominium developer or converter to record all of the individual condominium units owned within a condominium development. For example, a ...

The assessment sales ratio is a way of measuring the accuracy of a property’s assessed value when compared to the property’s selling price. This measurement gives the ...

Functional utility in real estate typically defines a property’s usefulness to the homeowner or lessee. The more purposes it can fulfill, the better. For instance, you can call a ...

Individual engaged in selling a product or service. The product may be an investment in real estate. In some instances, state law may require licensing to safeguard the public by requiring ...

One who has died with a valid will in effect. ...

Credential awarded by the International Association of Assessing Officers to appraisers of real property working for a government body. ...

Rule stating that the monthly mortgage payment, property taxes, and insurance should not exceed 25% of a family's monthly gross income, or about 35% for a Federal Housing Administration ...

Building that is elaborately built with columns in a symmetrical way, generally with three floors and a gabled roof. ...

Amount to be paid by a person or business for violating a statute or legal court order. It may also be assessed for violating the provisions of a contract. Examples of penalties are a ...

Popular Real Estate Questions