Property Disclosure Statement

Property Disclosure Statement

A Property Disclosure Statement is a legal document provided by a seller of real estate that outlines the condition of their property and any known issues or defects. This statement is designed to inform potential buyers about the property’s physical state, enabling them to make informed decisions before purchasing.

Typically, a Property Disclosure Statement includes information about:

• Structural issues, such as foundation problems or roof leaks.
• Environmental hazards, including mold, radon, or lead paint.
• Previous repairs or renovations that may affect the property’s value or safety.
• The condition of essential systems like plumbing, electrical, and HVAC.

In many jurisdictions, sellers are legally required to provide a Property Disclosure Statement to prospective buyers, ensuring transparency and reducing the risk of disputes after the sale. Failure to disclose known issues can lead to legal consequences for the seller, including potential lawsuits from buyers who feel misled. For example, if a seller knowingly omits significant water damage from their disclosure, they may be held liable for repair costs after the transaction is completed.