What Is a Property Disclosure Statement?

A property disclosure statement is a written document that a seller gives to a buyer. It shares known issues with a residential property before the sale moves forward. It typically covers:

Material defects and hazards the seller already knows about
Problems that affect value or desirability, such as structural or environmental issues
Facts based on the seller’s actual knowledge, not an inspection or third-party report

Sellers are not required to investigate the property. They do need to be honest about issues they already know exist. Leaving out known problems can lead to claims of fraud or misrepresentation.

Property disclosure statements apply to residential property sales, not rentals. Even when a state does not require a specific form, sellers still have a duty to disclose known defects.

Common Types of Property Disclosures

The exact disclosures a seller must make depend on state law and the property itself. That said, certain categories come up again and again in residential sales. The table below outlines common types of property disclosures and what sellers may need to share in each area.

Disclosure Type	What Sellers May Need to Share
Deaths or Crimes	Whether a murder or suicide happened on the property, if required by state law or if asked.
Neighborhood Issues	Ongoing noise, odors, or nearby activities that could affect living there.
Environmental or Safety Risks	Flood zones, natural hazard risks, contamination, or dangerous materials.
Homeowners Association (HOA)Information	Whether the home is part of an HOA and subject to fees or rules.
Repairs and Structural Problems	Known repairs or issues with the home’s structure or major systems.
Water Damage or Plumbing Issues	Past or current leaks, flooding, drainage, or plumbing problems.
Fixtures and Included Items	Which appliances or fixtures stay with the home.
Permits, Zoning, and Pests	Unpermitted work, zoning issues, boundary concerns, or pest problems.

For homes built before 1978, lead disclosure rules apply. Sellers must disclose any known lead-based paint or lead hazards. They also need to provide a lead information pamphlet, include required warning language in the contract, and give buyers time to test for lead if requested. Use a lead-based paint disclosure form to meet these requirements.

When Do You Need a Property Disclosure Statement?

You typically need a property disclosure statement when preparing to sell a home and before a buyer commits to the purchase. It gives the buyer a clear picture of the property’s condition early in the process.

Sellers often share the disclosure during negotiations or before accepting an offer. Doing it sooner helps avoid surprises that can slow down or derail the sale. Selling a home “as is” usually does not remove the duty to disclose known issues. Even with an as-is sale, sellers still need to be honest about material defects they know about, and state law may require these disclosures even in an “as-is” sale

Use a purchase and sale agreement to document the final terms of the home sale once disclosures are complete.

What to Include in a Property Disclosure Statement

A property disclosure statement helps buyers understand the home before they move forward. To keep things clear and organized, the form focuses on a few key areas that sellers are usually expected to cover.

Basic details

Names of the seller and buyer
Type of property and when it was built
Whether the seller lives in the home or rents out any part of it

Home condition

Yes or no answers about major systems and appliances
Known issues with electrical, plumbing, heating, or cooling
Roof condition and any past repairs
Structural concerns or moisture problems

Health and safety

Past or current pest issues
Water source and any known quality problems
Flooding, mold, or other environmental risks

Legal and community

Zoning, permit, or boundary issues
Whether the home is part of a homeowners’ association
Deaths on the property, where disclosure is required

Final step

Any additional issues the seller wants to disclose
State law that applies, and the date the form is signed

Covering these areas helps buyers review the information easily and gives sellers a clear record of what they disclosed.

Common Mistakes Sellers Make on Property Disclosures

Many sellers underestimate how important property disclosures are. Small oversights can come back to cause trouble after the sale. The issues below are some of the most common ways disclosures go wrong.

Leaving out or misstating known defects
Assuming an “as is” sale removes disclosure duties
Not updating the disclosure when new issues come up before closing
Treating the disclosure as optional or informal
Hiding information on purpose, which can lead to lawsuits or penalties

Taking the time to complete and update the disclosure matters. It creates a clear record of what was shared. That record can help protect the seller if questions or claims come up later.

Property Disclosure Requirements by State

Property disclosure requirements are not the same everywhere. Each state sets its own rules, which affect what sellers must disclose, how disclosures are made, and when buyers receive them.

Some states require sellers to use specific disclosure forms, while others rely on a general duty to disclose known material facts. Timing also varies. Disclosures may be required before an offer is made, after an offer is accepted, or before closing. Homes in HOAs or other common interest communities often trigger additional disclosure obligations, especially around fees, rules, and shared responsibilities.

A few states follow a buyer-beware (caveat emptor) approach. In those states, buyers carry more responsibility to inspect the property, though sellers still cannot hide known defects. Rules around earnest money also vary by state. The deposit a buyer puts down may be held differently depending on local law, and disclosure issues can affect when it becomes non-refundable or whether the buyer can recover it.

The table below breaks down property disclosure requirements by state, including required forms, timing rules, and related considerations.

State	Property Disclosure Statement Required?	Buyer Beware Policy	Laws
Alabama	Optional	Yes	–
Alaska	Yes	No	AS 34.70.010
Arizona	Yes	No	Hill v. Jones, 725 P.2d 1115)
Arkansas	Optional	Yes	–
California	Yes	No	CC § 1102
Colorado	Yes	No	§ 38-35.7
Connecticut	Yes	No	§ 20-327b
Delaware	Yes	No	§ 2577
Florida	Yes	No	Johnson v. Davis, 480 So.2d 625
Georgia	Yes (under certain conditions)	Yes	§ 44-1-16
Hawaii	Yes	No	§ 508D-5
Idaho	Yes	No	§ 55-2508
Illinois	Yes	No	765 ILCS 77/35, 765 ILCS 77/20
Indiana	Yes	No	§ 32-21-5
Iowa	Yes	No	§ 558A.2
Kansas	Yes	No	§ 58-30.106
Kentucky	Yes	No	§ 324.360
Louisiana	Yes	No	§ 9:3198
Maine	Yes	No	§ 173
Maryland	Yes	No	§ 10-702
Massachusetts	Yes (under certain conditions)	Yes	§ 15.301, § 197A
Michigan	Yes	No	§ 565.957
Minnesota	Yes	No	§ 513.55
Mississippi	Yes	No	§ 89-1-503
Missouri	Yes	No	§ 442.606
Montana	Yes	No	§ 37-51-313
Nebraska	Yes	No	§ 76-2,120
Nevada	Yes	No	NRS 113.130
New Hampshire	Yes	No	§ 477:4-d
New Jersey	Yes	No	§ 46:3C-10
New Mexico	Yes	No	§ 47-13-4
New York	Yes	No	§ 462
North Carolina	Yes	No	G.S. 47E-4(b)
North Dakota	Yes (under certain conditions)	Yes	§ 43-4-44
Ohio	Yes	No	§ 5302.30
Oklahoma	Yes	No	§ 60-833
Oregon	Yes	No	ORS 105.464
Pennsylvania	Yes	No	§ 7304
Rhode Island	Yes	No	§ 5-20.8-2
South Carolina	Yes (under certain conditions)	No	§ 27-50-40
South Dakota	Yes	No	§ 43-4-38
Tennessee	Yes (buyer may waive their right)	No	§ 66-5-202(1)
Texas	Yes	No	§ 5.008
Utah	Yes (only for agents)	No	R162-2f-401a
Vermont	Yes	No	§ 2296(4)
Virginia	Yes (under certain conditions)	Yes	§ 55-519 & § 55-520
Washington	Yes	No	§ 64.06.030 & § 64.06.020
Washington D.C.	Yes	No	§ 42–1305, § 42-1302
West Virginia	Optional	Yes	–
Wisconsin	Yes	No	709.01(2)
Wyoming	Optional (only for agents)	Yes	§ 33-28-303(c)

A few states follow unique disclosure rules.

California: Sellers must complete a real estate transfer disclosure statement themselves. Agents are not allowed to fill it out for them.
South Carolina: Buyers and sellers can agree in writing to waive the disclosure statement before the sale.
Tennessee: Sellers must provide a disclosure unless both parties agree in writing to waive it.

Property Disclosure Statement Sample

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