• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Legal Templates

Legal Templates
  • Business Forms
    Business & Contracts

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Business Forms
    Business Formation
    • Business Plan
    • LLC Operating Agreement
    • Articles of Incorporation
    • Corporate Bylaws
    • Buy-Sell Agreement
    Business Operations
    • Business Contract
    • Partnership Agreement
    • Non-Disclosure Agreement
    • Release of Liability
    • Letter of Intent
    Service Contracts
    • Purchase Agreement
    • Sales Agreement
    • Invoice
    • Purchase Order
    • Business Purchase
    Employment
    • Employment Contract
    • Employment Offer
    • Employment Verification
    • Freelance Contract
    • Non-Compete Agreement
    View All Business Forms
  • Real Estate Forms
    Real Estate

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Real Estate Forms
    Landlords
    • Lease Agreement
    • Property Management
    • Eviction Notice
    • Late Rent Notice
    • Lease Termination
    Tenants
    • Room Rental
    • Sublease Agreement
    • Roommate Agreement
    • Notice to Vacate
    • Early Lease Termination
    Home Ownership
    • Real Estate Purchase Agreement
    • Mortgage Deed
    • Quitclaim Deed
    • Deed of Trust
    • Moving Checklist
    View all Real Estate Forms
  • Personal & Family Forms
    Personal and Family

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Personal and Family Forms
    Estate Planning
    • Power of Attorney
    • Last Will & Testament
    • Living Will
    • Advance Directive
    • DNR Form
    Personal Finance
    • Bill of Sale
    • Loan Agreement
    • Purchase Agreement
    • Promissory Note
    • Sales Agreement
    Family Matters
    • Parenting Plan
    • Child Travel Consent
    • Divorce Agreement
    • Separation Agreement
    • Prenuptial Agreement
    Affidavits
    • General Affidavit
    • Gift Affidavit
    • Affidavit of Identity
    • Affidavit of Residence
    • Affidavit of Death
    View All Personal Forms
  • Support
    Resources
    • Business
    • Real Estate
    • Personal and Family
    • Financial
    • Estate Planning
    Support
    • About Us
    • Careers
    • Contact Us
    • All Legal Documents

    Monday - Friday | 9AM - 7PM EDT

    (855) 335-9779

  • Sign In
  • :email

Home Real Estate Property Disclosure Statement

Property Disclosure Statement Form

Use our property disclosure statement to outline your property’s history and current condition.

Updated March 9, 2023 | Legally reviewed by Susan Chai, Esq.

A Property Disclosure Statement is a document a seller uses to protect themselves from lawsuits for the sale of a property. It allows sellers to outline a property’s history and existing condition.

A buyer can then consider the property disclosure statement and determine if they want to address any listed issues.

Table of Contents
  • What is a Property Disclosure Statement?
  • What Is the Purpose of a Property Disclosure Statement?
  • Property Disclosure Statements by State
  • When Is a Property Disclosure Statement Required?
  • Who Fills Out the Property Disclosure Statement?
  • What Disclosures Does the Property Disclosure Statement Require?
  • How To Write a Property Disclosure Statement
  • Frequently Asked Questions
  • Property Disclosure Statement Sample

What is a Property Disclosure Statement?

A property disclosure agreement helps sellers inform buyers what issues or damage may plague for sale properties.

Most states require sellers to complete property disclosure statements, sometimes referred to as property condition disclosure agreements, to ensure that the sale of a property is as transparent as possible. 

Sellers can refer to these documents if a buyer attempts to contest damage found after a sale.

What Is the Purpose of a Property Disclosure Statement?

Property disclosure statements serve one purpose for a buyer and another for the seller.

Buyers can refer to property disclosure statements to learn more about what repairs a property requires upon purchase. Buyers can subsequently use property disclosure statements to argue that a property’s listed price doesn’t consider the property’s flaws.

You must submit property disclosure statements to interested buyers if you’re selling a property.

If someone buys your property and returns it, insisting that you didn’t disclose the breadth of existing damage, you can refer to your property disclosure statement to protect yourself in court.

You can work with a real estate attorney to ensure your property disclosure statement is as comprehensive as possible (note that California has specific rules for filling out property disclosure statements, and agents may not fill out these forms for sellers).

Property Disclosure Statements by State

Certain states operate on a caveat emptor or “let the buyer beware” policy.

These states are rare but include:

  • Alabama
  • Arkansas
  • Georgia
  • Massachusetts 
  • North Dakota
  • Virginia
  • West Virginia
  • Wyoming

Alternatively, some states require you to complete residential property disclosure statements or allow you to limit the information on your disclosure statements otherwise.

You can work with a real estate agent or an attorney to determine what information must appear on a property disclosure statement in your state.

Is a Property Disclosure Statement Required?

Most states require sellers to provide buyers with some version of a property disclosure statement.

These states include:

  • Alaska
  • Arizona
  • California
  • Colorado
  • Connecticut
  • Delaware
  • District of Columbia (Washington D.C.)
  • Florida
  • Georgia (under certain conditions)
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts (under certain conditions)
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • North Dakota (under certain conditions)
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina (under certain conditions)
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • Virginia (under certain conditions)
  • Washington
  • Wisconsin

California requires sellers to complete a Real Estate Transfer Disclosure Statement, and real estate agents may not fill out this form for the seller.

South Carolina is also a unique state in that both the buyer and the seller can agree ahead of time and in writing not to complete a disclosure statement. 

Tennessee has a similar policy. Unless both parties agree to waive, sellers are required to provide buyers with a property disclosure statement.

When Is a Property Disclosure Statement Required?

Unless a seller and buyer live in a “buyer beware” state or in a state where the statement is waivable, sellers must submit a property disclosure statement to parties interested in purchasing their property.

Failure to submit a property disclosure statement to an interested party can cause the seller to face potential legal action.

Who Fills Out the Property Disclosure Statement?

The property seller is expected to fill out and complete the property disclosure statement. 

Property sellers in California must fill out the transfer disclosure statement in writing and remember that real estate agents cannot offer legal advice regarding the form.

What Disclosures Does the Property Disclosure Statement Require?

When composing a property disclosure statement, you’re expected to include information about a property’s:

  • Known mechanical and electrical defects
  • Known structural defects
  • Health and safety hazards
  • Water, sewer, plumbing, heating and cooling systems
  • History of flooding and pests
  • History of legal issues

You can also include information about neighborhood noise, nearby sex offenders, zoning disputes, or HOA requirements. However, your property disclosure statement is different from a home inspection report.

You are not expected to do pre-inspections. 

Similarly, your disclosure shouldn’t require any investigation. You are only required to submit information about conditions you’re aware of during a sale.

How To Write a Property Disclosure Statement

It’s important to know what information a property disclosure statement contains.

With that in mind, sellers writing a property disclosure statement should include the following:

Opening Statements

A property disclosure’s opening statement includes the seller’s name and the address of the property in question.

Ownership Information

The ownership section of a property disclosure statement details the type of property up for sale, the year the property was constructed, and the length of time the current seller has owned the property.

Property Information

The following sections of a property disclosure statement detail the property’s features. These sections should include the following:

  • Water: Is the water source private or public? Have there been problems with the water supply in the past? Does the property come with a water treatment system? Is there a fire sprinkler system on site, and has it been maintained?
  • Sewage: Does the property connect to a public sewage system or a septic tank? Have there been problems with this connection before?
  • Heating: Does the property run on oil, natural gas, electricity, or propane? Does the heating unit serve every room?
  • Air conditioning: What kind of air conditioning unit does the property have? Has the system been maintained over time?
  • Hot water: How does the property heat its water? How old are the applicable hot water units?
  • Foundation: What kind of foundation does the property have? Has it been maintained?
  • Basement/crawlspace/cellar: What additional space does the property have? Have those spaces leaked or experienced high degrees of moisture in the past?
  • Roof: What is the roof made of, and when was it last replaced? Has the roof leaked or experienced moisture damage in the past?
  • Plumbing system: Is the property’s plumbing operational? Are there issues with the current plumbing setup?
  • Insulation: Are the exterior walls, ceiling/attic, floor, and other areas of the property insulated?
  • Fire: Does the property have working fireplaces, chimneys, or woodstoves?
  • Structural systems: What supports does the property have in place, if any?

Problem Areas

These sections of the property condition disclosure statement specifically touch on what problems a property may have experienced.

These can include:

  • Insects and other infestations
  • Carbon monoxide leaks
  • The presence of hazardous or regulated materials
  • Zoning violations
  • Exterior drainage and standing water
  • Flooding
  • Property restrictions
  • Murder/suicides
  • Illegal drugs or a history of criminal activity
  • Material defects

Additional Information

Most property condition disclosure statements also require sellers to disclose whether or not they’ve improved the property during their tenure as owner.

Sellers can also include information about a property’s mineral rights and any additional disclosures in this section.

Signatures

Finally, sellers complete the property condition disclosure statements with their signatures, and interested buyers sign to acknowledge receipt.

Frequently Asked Questions

What are the consequences of lying on a property disclosure statement?

Buyers who discover that a seller overlooked damage in their property disclosure statement may have the right to void a real estate purchase agreement.

Buyers can alternatively pursue a real estate purchase agreement amendment, depending on their circumstances.

If you’ve already sold your property, a wronged buyer may choose to take you to court over an alleged oversight. However, buyers have to uphold a substantial burden of proof. Sellers, after all, aren’t required to conduct inspections before creating a property disclosure statement.

Sellers who can argue a lack of knowledge about conditions on a sold property may be able to avoid a civil lawsuit altogether.

If you’re concerned about missing apparent damage when writing your property disclosure statement, bring a real estate attorney to walk through the property with you.

You are not expected to hire an inspector when writing your property disclosure statement. But an attorney can help you identify obvious damage the average buyer might have issues with.

What about earnest money deposits and property disclosure statements?

Buyers interested in a property can use earnest money to express their intent to purchase it. Earnest money is not the same thing as a down payment.

Even so, if a buyer discovers that a seller did not mention certain defects in a property disclosure statement, they may demand that the seller return their earnest money

What about buyer beware and property disclosure statements?

The term “buyer beware” refers to a policy upheld in states mentioned above that generally do not hold sellers accountable for property disclosure statement oversights.

These states don’t punish sellers who overlook a property’s defects before selling that property. Buyers must contend with these defects without the ability to hold the original seller accountable for giving incomplete information.

That said, “buyer beware” only happens once a seller concludes a sale in any of the states mentioned above.

If a buyer brings in an expert before closing and discovers damage not listed on a property disclosure statement, that buyer can negotiate the price.

Property Disclosure Statement Sample

Below is an example of what a property disclosure statement looks like. Use our document builder to create a property disclosure statement online easily.

sellers property disclosure statement

DOWNLOAD PDF
DOWNLOAD MS WORD

Property Disclosure Statement

Create Your Property Disclosure Statement in Minutes!

Legal Documents
  • All Legal Forms
  • Business Forms
  • Real Estate Forms
  • Personal and Family Forms
Popular Forms
  • Lease Agreements
  • Power of Attorney Forms
  • Eviction Notice
  • Living Will
  • Non-Disclosure Agreement
Resources
  • Legal Resources
  • Business
  • Real Estate
  • Personal & Family
  • Estate Planning
  • Financial
Company
  • Pricing
  • About Us
  • Careers
  • Contact Us
  • Partner With Us
Users
  • Account
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
  • Do Not Sell My Personal Information
McAfee - Together is power.
Trustpilot

(855) 335-9779, Monday-Friday, 9AM - 7PM EDT

Facebook Twitter LinkedIn YouTube

Copyright 2023 Legal Templates LLC. Legal Templates LLC is not a lawyer, or a law firm and does not engage in the practice of law. Legal Templates cannot and does not provide legal advice or legal representation. All information, software and services provided on the site are for informational purposes and self-help only and are not intended to be a substitute for a lawyer or professional legal advice. Use of this site is subject to our Terms of Use. Legaltemplates.net is owned and operated by Resume Technologies Limited, London with offices in London United Kingdom.”

Esc
property disclosure statement

The document above is a sample. Please note that the language you see here may change depending on your answers to the document questionnaire.

Fill in the details

Thank you for downloading one of our free legal templates!

Would you leave us a review?

We hope you've found what you need and can avoid the time, costs, and stress associated with dealing with a lawyer.

A review would mean the world to us (it only takes about 15 seconds).

Please check your download folder for MS Word or open tabs for PDF so you can access your FREE Legal Template Sample

Thanks again, and good luck!

Leave My Review