Documents completed by the seller of a home listing any known issues with the property, as well as any remodel projects completed during the time they owned the home. In most states, the seller is required to provide this disclosure within a few days of mutual acceptance. In turn, the buyer will have a certain number of days to review the disclosures. This information is useful, but is no substitute for an inspection by a licensed inspector.
In most cases, prospective buyers can ask their agent for access to the seller disclosure on the home before making an offer. However, when buying bank-owned homes, buyers won’t receive these documents since the bank isn’t required to provide details about the condition of the home. Every transaction is different and the purchase and sale agreement dictates the specifics.
Examples of seller disclosure issues include:
Structural, electrical, or plumbing issues
Lead paint, radon, asbestos, or toxic mold
Pests or wood-destroying insects
Flood or wildfire danger
Toxins in the local soil or water
Water rights (in dry or desert climates)