Do You Have To Disclose Structural Damage When Selling A House

Published on August 26th, 2022

Selling a house can be a challenge as the market shifts. Many sellers find themselves in the unfortunate situation of selling a home with structural damage. If you are selling your home to prospective buyers, do you have to disclose problems related to structural damage?

Disclosure Rules Vary by State and Local Laws Regarding Structural Damage

If you are selling your home with the aid of a real estate attorney or real estate agent, they will be up to date on the federal law and local laws surrounding a seller's disclosure.

In many areas around the country, a seller will need to sign off on a seller's disclosure form, which goes over items like lead paint, hazardous materials, mold growth, toxic waste, water damage, and other nuisances that could affect the property's condition and negatively impact the property's value.

What Are Sellers Required to Disclose on a Federal Level?

In general, it's never good for sellers to withhold information about defects found in the home. that can lead to structural damage or has already caused structural damage. If you avoid disclosing information, you can find yourself with a bunch of legal liability and other legal issues based on state law.

Federally, a seller's disclosure statement should include information about the following property defects to a prospective buyer if they are aware of them:

• Roof leaks

• Broken window or windows

• Any known defects

• Lead based paint

• Lead

• Previous termite treatment

• Septic of sewer issues

• Issues with the heating system

• A potential health hazard

• Information about the homeowner's association, including monthly fees

In most states, sellers are required to disclose information on their property to the new owner that goes beyond this list and can include items like:

• Flood plain information

• Violent crimes that have occurred at the property

• Past insurance claim

• Planned or past site work

Again, disclosures vary depending on the state's laws, and what one state might find acceptable won't be in another state.

When selling real estate, giving a buyer as much information as you can on your seller's disclosure statement about the property's history will help a buyer make an informed decision and reduce the risk that you will be held liable in the future for failing to disclose information about structural damage to a buyer.