Seller Disclosures about the Condition of the Property

What must a seller disclose about the condition of the property?

A seller must disclose known material defects about the property. Typically, a seller would make make these disclosures on a Real Estate Transfer Disclosure Statement.

In addition, sellers may also give you a Natural Hazards Disclosure Statement.  That form contains disclosures about certain flood, earthquake and fire zones. These are often provided by a third party report and the information may depend on the availability of public reports and maps.

What is the Transfer Disclosure Statement?

The TDS is a form required by state law which the seller completes (unless exempt) and delivers to a buyer. Among other things, it asks the seller to list the various features of the property and disclose whether or not any of those features are in operating condition.   It also allows a seller to state whether the seller is aware of a variety of common issues such as environmental hazards, permits, homeowners’ associations and other matters that might affect the property. Some areas have additional local disclosures required by the country or city.