Attaching to a Purchase Agreement

The property disclosure statement is commonly attached to a purchase agreement after it’s completed and signed by both the buyer and seller.

Property Disclosure Statements (By State)

Required in most States that details the condition of the property. In most states, the seller is required to report any structural or material defects in the property (e.g. leaking roof, flooding, etc.).

Depending on the state, the seller may be held liable for any statements or claims made or not made.

State	Property Disclosure	Laws
Alabama	Property Disclosure (optional)	–
Alaska	Property Disclosure	AS 34.70.010
Arizona	Property Disclosure	Hill v. Jones, 725 P.2d 1115)
Arkansas	Property Disclosure (optional)	–
California	Property Disclosure, Natural Hazard Disclosure	CC § 1102
Colorado	Property Disclosure	§ 38-35.7
Connecticut	Property Disclosure	§ 20-327b
Delaware	Property Disclosure	§ 2577
Florida	Property Disclosure	Johnson v. Davis, 480 So.2d 625
Georgia	Property Disclosure	§ 44-1-16
Hawaii	Property Disclosure	§ 508D-5
Idaho	Property Disclosure	§ 55-2508
Illinois	Property Disclosure, Radon Testing Guidelines for Real Estate Transactions, Illinois Disclosure of Information on Radon Hazards	765 ILCS 77/35, 765 ILCS 77/20
Indiana	Property Disclosure	§ 32-21-5
Iowa	Property Disclosure, Radon Home-Buyers and Seller’s Fact Sheet	§ 558A.2
Kansas	Property Disclosure	§ 58-30.106
Kentucky	Property Disclosure	§ 324.360
Louisiana	Property Disclosure	§ 9:3198
Maine	Property Disclosure	§ 173
Maryland	Property Disclosure	§ 10-702
Massachusetts	Property Disclosure, Title 5 Addendum (only for septic tanks)	§ 15.301, § 197A
Michigan	Property Disclosure	§ 565.957
Minnesota	Property Disclosure	§ 513.55
Mississippi	Property Disclosure	§ 89-1-503
Missouri	Property Disclosure (Form DSC-8000)	§ 442.606
Montana	Property Disclosure	§ 37-51-313
Nebraska	Property Disclosure	§ 76-2,120
Nevada	Property Disclosure	NRS 113.130
New Hampshire	Property Disclosure	§ 477:4-d
New Jersey	Property Disclosure	§ 46:3C-10
New Mexico	Property Disclosure	§ 47-13-4
New York	Property Disclosure	§ 462
North Carolina	Property Disclosure	G.S. 47E-4(b)
North Dakota	Property Disclosure	§ 47-10-02.1
Ohio	Property Disclosure	§ 5302.30
Oklahoma	Property Disclosure (Known Defects) or Property Disclosure (No Known Defects)	§ 60-833
Oregon	Property Disclosure	ORS 105.464
Pennsylvania	Property Disclosure	§ 7304
Rhode Island	Property Disclosure	§ 5-20.8-2
South Carolina	Property Disclosure	§ 27-50-40
South Dakota	Property Disclosure	§ 43-4-38
Tennessee	Property Disclosure (Buyer may waive their right to receive the disclosure)	§ 66-5-202(1)
Texas	Property Disclosure	§ 5.008
Utah	Property Disclosure (Only for Agents)	R162-2f-401a
Vermont	Property Disclosure	§ 2296(4)
Virginia	Property Disclosure	§ 55-519 & § 55-520
Washington	Property Disclosure	§ 64.06.030 & § 64.06.020
Washington D.C.	Property Disclosure	§ 42–1305, § 42-1302
West Virginia	Property Disclosure (optional)	–
Wisconsin	Property Disclosure	709.01(2)
Wyoming	Property Disclosure (Only for Agents)	§ 33-28-303(c)

How the Property Disclosure Works (3 steps)

Before two (2) parties can enter into a purchase agreement, a statement must be completed by the seller to convey any current issues in a form known as the property disclosure.

The seller should go around the property looking for any material defects such as leaking, fractures, electrical malfunctions, or any other type of issue that should be made known. In some states, the seller can be considered liable if they are aware of an issue that is unreported.

1. Download the Correct Property Disclosure Statement

seller filling out property disclosure statement form on laptop Download either the blank property disclosure statement or the State-specific version. It’s recommended to use the State-specific version as that allows the seller to complete the exact questions that may be required in the particular State.

2. Inspect the Property

seller inspecting property with tablet in hand It’s best to take a personal tour of the property and take a look at everything. This means all exterior and interior walls, ceilings, bathrooms, roofs, attic, basement, and anywhere else that should be checked to ensure there is no leaking or other issues on the property. Unless the property is located in a Buyer Beware State, the seller is liable for any unreported issues.

The buyer will most likely hire a home inspector that will locate any problems with the house anyway, although it looks much better on the seller if they are identified beforehand.

3. Sign and Send to the Buyer

owner signing property disclosure form on tablet After it’s complete it should be signed by the seller and sent to the buyer. Upon the buyer obtaining possession of the property disclosure and reviewing, they will sign the document accepting they have received it. If there has been a purchase agreement already authorized, it should be attached and made part of the agreement.

Earnest Money

If the buyer makes an earnest money deposit and finds a material defect that was not mentioned in the property disclosure, the buyer may be entitled to have their earnest money returned. In States that are not Buyer Beware, the seller is required to report any structural or material defects in the property (e.g. leaking roof, flooding, etc.).

Buyer Beware

Buyer beware is a term that is used to describe states that do not hold the seller responsible for not mentioning material defects at the time of sale. In addition, buyers who choose to purchase in a buyer beware state will be subject to purchasing the property on an “as-is, where-is” basis. Therefore, if there are any material defects found on the property after the closing has occurred, liability rests fully on the new owner.

Buyer Beware States – Alabama, Arkansas, Colorado, Florida, Indiana, Massachusetts, Missouri, Montana, New Hampshire, New Jersey, Virginia, West Virginia, and Wyoming.