What is a property condition disclosure (seller's disclosure)?

SELLER'S PROPERTY CONDITION DISCLOSURE (also called Seller's Disclosure, Property Disclosure Statement, etc.): a state-required form where the seller discloses known material conditions to the buyer. COMMON ELEMENTS: (1) STRUCTURAL — foundation, roof, walls, ceilings; (2) SYSTEMS — heating/cooling, electrical, plumbing; (3) APPLIANCES — included appliances, working condition; (4) WATER — well water, water tests, leaks, flooding history; (5) ENVIRONMENTAL — radon, asbestos, lead paint (federal disclosure for pre-1978 homes), mold, underground tanks; (6) NEIGHBORHOOD — boundary disputes, encroachments, restrictions; (7) PESTS — termite, rodents; (8) LEGAL — pending litigation, insurance claims history, HOA, easements; (9) RECENT REPAIRS — repairs done during seller's ownership. STATE VARIATIONS: (1) FORM — some states have a state-mandated specific form; others allow brokerage forms meeting state requirements; (2) REQUIRED — most states require for most residential transactions with exceptions (new construction, foreclosures, estate sales sometimes exempt); (3) TIMING — must be provided before contract or before specific event; varies; (4) UPDATES — if condition changes after disclosure, seller must update; (5) BUYER RIGHTS — if disclosure is materially inaccurate or incomplete, buyer may have rights to rescind contract or sue for damages; (6) LEAD PAINT — pre-1978 homes federally require lead paint disclosure (Residential Lead-Based Paint Hazard Reduction Act of 1992); (7) STATE-SPECIFIC ADDITIONS — some states require disclosures of specific local hazards (earthquake zones, fire hazard zones, flood zones, etc.). SELLER LIABILITY: properly completing the disclosure with honest knowledge limits seller liability; concealment or false statements can result in lawsuits, contract rescission, damages. AGENT'S ROLE: agent typically delivers the form to buyer, ensures it's completed, encourages honesty but cannot complete it for the seller; agent has separate duty to disclose material facts the AGENT knows about. CAVEAT EMPTOR ('buyer beware'): the old common-law rule that buyer bears risk has been substantially modified in most states by mandatory disclosure laws.