Importance of Seller's Disclosure

A Valuable Benefit to Buyers & Sellers

Written seller disclosure has become a major part of home sale transactions throughout the United States. Although written seller disclosure has been the practice in some areas for several years, it is new in many others. Coldwell Banker Real Estate Corporation (Coldwell Banker®) recognizes the benefits of written disclosure to home buyers and sellers and strongly encourages its use throughout the real estate industry.

What is “Seller Disclosure”?

There was a time when caveat emptor – “let the buyer beware” – was the rule in home buying. Those days are gone, and for many years the law in every state has required home sellers to disclose to prospective buyers “material facts” about the physical condition of their property. This includes letting the buyers know about any defects that might affect the value or desirability of the property.

Why is written disclosure important?

Even though seller disclosure is the law everywhere, written disclosure is not yet required in many areas. However, Coldwell Banker has found through experience in many parts of the country that disclosure in writing is the best way to communicate clearly and to reduce uncertainty and misunderstandings.

What is the “Seller’s Disclosure Statement”?

The Seller’s Disclosure Statement is a form on which the sellers describe, to the best of their knowledge, physical aspects of the property. This includes numerous categories such as land condition, structural condition, plumbing, roof, electric, additions and remodels.

The Seller’s Disclosure Statement is not a warranty of any kind and is not a substitute for any inspections or home warranties that the buyer may wish to obtain.

How does this benefit buyers and sellers?

The Seller’s Disclosure Statement gives buyers information to help them make an informed buying decision. Buyers appreciate a candid statement of the property, and sellers have found that, rather than “scaring buyers away,” properties with written disclosures tend to be more attractive to buyers than those without. Buyers have confidence and peace of mind when they know that all known defects have been disclosed to them.

Sellers who disclose up-front make it clear that the price of their house reflects the disclosed condition. Defects disclosed on the Statement put the buyers in a better position to employ inspectors and other professionals who can provide further information, and the buyers have a clear idea of the improvements they will need to make to their new home.

Written disclosure helps to reduce the misunderstandings – often leading to delayed closing, renegotiation, and even litigation – that can occur when buyers discover an undisclosed defect.

Written Disclosure – It’s good business.

“Put it in writing” has always been sound business. Written disclosure takes that adage one step further, and Coldwell Banker urges that a Seller’s Disclosure Statement be included in every home sale transaction.

Sample Seller Disclosure Form (pdf)