What Are Disclosures From a Seller?
Published by Cash Flow Deals · Last updated 2026-08-04 · Published and reviewed for compliance by Camilo Palacio, a Florida Licensed Realtor
A seller disclosure is a written statement telling a buyer about known problems with the property before the sale closes. It covers things like a leaking roof, foundation cracks, past flooding, or a septic system that's failed before. Federal law adds one specific requirement for homes built before 1978: a lead-based paint disclosure. State law adds the rest, and it varies by where the home sits.
| Factor | Handling Disclosure Alone | Working With a Real Estate Professional |
|---|---|---|
| Knowing what's material | Guessing at what counts as a defect worth disclosing | A professional has seen which omissions actually trigger disputes |
| Paperwork accuracy | Filling out a generic form found online | Using the disclosure form your state and contract actually require |
| Repair-driven renegotiation later | Buyer discovers an issue after closing and disclosure looks incomplete | Issues get surfaced and priced before the deal is locked, not after |
What Counts as a Material Fact
A material fact is anything about the property that could change a buyer's decision to buy, or what they'd be willing to pay. The legal standard most states use is good faith: you have to disclose what you actually know, not what a home inspector might theoretically find. That means a seller who genuinely doesn't know about a hidden pipe leak isn't liable for hiding it. But a seller who patched a ceiling stain last year and never mentioned the leak behind it is a different story. Staying silent about something you observed firsthand is where sellers get into real legal trouble.
What Typically Has to Be Disclosed
Most states require disclosure across a few categories. Structural issues: foundation cracks, past roof leaks, termite or pest damage. Mechanical systems: HVAC problems, plumbing leaks, electrical issues, sewer or septic failures. Environmental hazards: known mold, radon, or asbestos. Property history: major insurance claims, past fires, or flooding, even if it was fully repaired. Some states also require disclosing whether a death occurred in the home or whether the property was used for certain criminal activity, though this varies widely by state. What's included with the sale versus excluded, like appliances or fixtures, also gets disclosed on most standard forms.
The One Federal Requirement: Lead-Based Paint
Every home built before 1978 falls under a federal disclosure rule for lead-based paint, regardless of what state it's in. The seller has to disclose any known lead paint hazards, give the buyer a federal pamphlet on the risks, and allow a 10-day window for a lead inspection if the buyer wants one. This is the one disclosure requirement that doesn't change by state. Skipping it carries real financial exposure: civil penalties for violations can run into the tens of thousands of dollars per violation, on top of any damages a harmed buyer could pursue separately.
Why Disclosure and Price Negotiation Are Connected
Disclosure isn't just a legal formality, it's usually where price renegotiation starts. A buyer who learns about a repair issue mid-contract often comes back asking for a credit or a lower price. That's a normal part of a traditional sale. Sellers working with Cash Flow Deals go through the same disclosure obligations everyone else does, the seller still owns that legal duty, but the net price gets locked before repair items are scoped out. That structure removes the back-and-forth where a disclosed issue turns into a last-minute price fight.
Common questions
Can a seller be sued for not disclosing a defect?
Yes, if the seller knew about the defect and didn't disclose it in good faith. Buyers who discover an undisclosed known issue after closing can pursue legal action in most states.
Does 'selling as-is' remove the duty to disclose?
No. As-is means the seller won't make repairs before closing, it does not remove the separate legal duty to disclose known material defects.
Do disclosure requirements differ by state?
Yes, significantly. Beyond the federal lead-based paint rule, each state sets its own disclosure form and required categories, so what you must disclose in one state can differ from another.
What happens if I don't know about a defect?
You generally aren't liable for defects you genuinely didn't know about. The standard is good faith disclosure of what you actually know, not a guarantee that nothing is wrong with the house.
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What this means for your options
Every path to selling a house has real tradeoffs. Cash Flow Deals is built for the middle: faster than a traditional listing, more money than a cash investor.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
No repairs, no showings, no financing contingency on your side — our novation structure connects you with a bank-financed buyer at a price locked at signing. Usually within one business day.
See your selling options before you decide anything.