What a Seller Is Legally Required to Disclose About a House
3 min read · Last updated 2026-08-03 · Reviewed by Joseph Mena, CFO of Cash Flow Deals.
When you sell your house, you must tell the buyer about known material defects and hazards you're aware of, whether you sell directly to a buyer or work with a real estate investment company. The specific list varies by state, but one federal rule applies everywhere: if your home was built before 1978, you must disclose known lead-based paint hazards in writing before the buyer is bound to the contract.
| Factor | Traditional Route | Cash Flow Deals |
|---|---|---|
| Duty to disclose known defects | Still applies | Still applies, disclosure obligations don't change based on how the house sells |
| Repairs before closing | Often expected as part of negotiations | Seller isn't asked to complete repairs before closing |
| Federal lead-paint disclosure for pre-1978 homes | Required, handled through listing paperwork | Required, handled through closing paperwork |
The One Disclosure Rule That Applies in Every State
Federal law requires sellers of housing built before 1978 to disclose known lead-based paint hazards before the buyer is bound to a purchase contract. That means giving the buyer the EPA's lead-hazard information pamphlet, disclosing any known lead-based paint or hazards along with available records and reports, including a signed Lead Warning Statement, and giving the buyer a window, typically 10 days, to conduct a lead-paint inspection or risk assessment if they want one. The seller has to keep a signed copy of that disclosure for three years after the sale closes. This is the one disclosure requirement that doesn't change based on which state the home is in.
What Known Material Defect Generally Means
Outside the federal lead-paint rule, most states require sellers to disclose defects they actually know about that a reasonable buyer would consider important to the decision to buy or the price they'd pay. That typically covers things like past flooding, foundation cracks, roof leaks, mold, failed septic systems, or major mechanical problems the seller is aware of. What counts as material, what form it has to be disclosed on, and what the exact deadlines are varies from state to state. A seller should confirm the specific requirements with a licensed real estate attorney in their state before filling out any disclosure form.
What Selling As-Is Does Not Erase
An as-is sale means the seller isn't agreeing to make repairs or offer credits for problems the buyer finds. It does not mean the seller is exempt from disclosing what they already know. The duty to disclose known material defects, and the federal lead-based paint rule for pre-1978 homes, both still apply in an as-is sale exactly the way they apply in a traditional listing. The buyer also still generally has the right to inspect the property before deciding whether to move forward.
What Happens If a Seller Fails to Disclose Something They Knew About
If a seller knowingly withholds information about a defect they were required to disclose, the buyer may have legal remedies after closing, which can include damages or, in some situations, unwinding the sale, depending on the state and the specific facts. The exact remedies, deadlines to act, and what has to be proven all vary by state law. A seller who isn't sure whether something needs to be disclosed should get a straight answer from a licensed attorney in their state before closing, rather than guess.
Where Cash Flow Deals Fits for a Seller Worried About Disclosure Risk
Selling to Cash Flow Deals doesn't remove your disclosure duty. What changes is what happens after disclosure. With Cash Flow Deals, you choose between the Fast Cash Offer, where we buy your house as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. With Premium, only what the buyer's lender requires gets fixed, with repair costs settled from the sale proceeds from our share. With Fast Cash, you have no repairs to make. For either offer, the number is agreed before any work starts, and it changes only if you agree. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. With Premium, we are paid as a separate line item on the closing statement. If your buyer's loan falls through, that is our problem, not yours, and you can still choose between the Fast Cash Offer at its own number and the Premium Cash Offer if financing succeeds. You still tell the truth about what you know; you don't have to fix the house before you can start.
Common questions
Do I have to disclose a problem I already fixed?
It depends on the state and what 'fixed' means in that context. Some states only require disclosure of current, known defects. Others ask about past issues too, even if repaired. Confirm the specific rule with a licensed attorney in your state before filling out a disclosure form.
Does selling as-is remove my disclosure obligations?
No. As-is affects who pays for repairs, not what you're required to tell the buyer. The duty to disclose known material defects still applies.
What's the federal rule about lead-paint disclosure?
Sellers of homes built before 1978 must give buyers an EPA lead-hazard pamphlet, disclose any known lead-based paint hazards, provide a signed Lead Warning Statement, and allow a window, typically 10 days, for a lead-paint inspection before the buyer is bound to the contract.
Do I need an attorney to fill out a disclosure form?
It's not required by federal law, but it's a reasonable step given how much disclosure rules vary by state. A licensed attorney in your state can confirm exactly what your specific form requires.
Does Cash Flow Deals require the same disclosures as a traditional sale?
Yes. Disclosure obligations don't change based on how the house sells. What changes with Cash Flow Deals is that the seller isn't expected to complete repairs before closing.