When you find a house you love, it’s easy to start imagining your life there right away. You picture where the sofa will go and think about hosting holidays. As an agent, I’ve seen that excitement on countless faces. It’s a wonderful part of the journey. But before you get too far down the road, there’s a document you need to pay special attention to: the property disclosure statement.

This stack of papers might not be as exciting as looking at photos of the home, but it’s one of the most important parts of the buying process. Think of it as the home’s official history, written by the seller. It’s where they’re legally required to tell you what they know about the property’s condition and past. I’ve seen these documents save buyers from major headaches, and I want to help you understand how to use them to your advantage. Let’s break down what disclosures are and how you can use them to buy with confidence.

What Exactly Is a Property Disclosure?

A property disclosure is a legal document where the seller provides information about the condition of the property they are selling. State laws vary, but sellers are generally required to disclose any known "material defects"—that is, any issue that could significantly impact the home's value or a buyer's decision to purchase it.

This isn’t a home inspection report. The seller is only required to disclose what they actually know. They aren’t expected to go looking for problems. Instead, it’s a good-faith account of their experience living in the home. It’s your first official look behind the curtain, and it provides a roadmap for what you and your home inspector should investigate further.

Why This Document Is So Important

Reading through a disclosure statement can feel a bit like reading the fine print on a contract, but it's vital. This document protects you, the buyer, from walking into a bad situation blindly.

It gives you a heads-up on potential issues before you’re financially committed. For instance, if a seller discloses that the basement had a water problem three years ago, you now know to have your inspector pay special attention to the foundation and drainage. It gives you the power to ask informed questions and make decisions based on facts, not just the pretty picture the home presents at a showing. Ignoring it is like setting out on a road trip without checking the map.

Common Issues Found in Disclosures

Every house has a story, and disclosures often reveal some of its less-than-perfect chapters. Don’t be alarmed if you see things listed; no home is perfect. The key is understanding the severity of the issues. Here are some common things I see disclosed:

  • Water Damage and Leaks: This is a big one. A seller might disclose a past roof leak that has since been repaired, or that the basement gets damp during heavy rains. This tells you to check for mold and ensure the repairs were done correctly.
  • Foundation Issues: Sellers must disclose known problems with the foundation, such as significant cracks or settling that required repairs. This is a red flag that definitely warrants further investigation by a specialist, like a structural engineer.
  • Pest Infestations: If the home has ever been treated for termites, carpenter ants, or other wood-destroying insects, it should be in the disclosure. You'll want to know what was done and if there’s an ongoing warranty.
  • System Repairs or Replacements: Information about major systems, like the age of the HVAC, water heater, or roof, is often included. A seller might disclose that the air conditioner was replaced last year, which is great news for you.
  • Neighborhood Nuisances: This can include things like excessive noise from a nearby airport, shared driveway disputes, or a neighbor’s perpetually barking dog. These are quality-of-life issues that you'll want to consider.
  • Renovations and Permits: If the sellers finished the basement or added a deck, they should disclose whether they pulled the proper permits for the work. Unpermitted work can cause major headaches down the road.

How to Review Disclosures Like a Pro

When you receive the disclosure packet, don’t just give it a quick scan. Grab a cup of coffee and a highlighter. Here’s my advice on how to approach it:

  1. Read Every Single Word: It sounds obvious, but you’d be surprised how many people just skim. Go through it line by line. Pay close attention to any boxes that are checked "Yes" or "Unknown."
  2. Highlight and Make Notes: Use a highlighter to mark anything that seems concerning or that you don't understand. Write down questions as they come to you. For example, if it says "roof leak repaired," your question should be, "When was it repaired, who did the work, and is there a warranty?"
  3. Share It with Your Agent and Inspector: Your real estate agent has seen hundreds of these and can help you spot potential red flags. It’s also crucial to give a copy to your home inspector before they visit the property. This allows them to focus their attention on the specific areas the seller mentioned.
  4. Don’t Panic Over Minor Issues: Remember, almost every disclosure will have something on it. A dripping faucet or a cracked windowpane are minor fixes. Focus on the big-ticket items—the roof, foundation, electrical, and plumbing systems.

Asking the Right Questions

Once you’ve reviewed the document, it's time to follow up. Your agent can help you ask the seller’s agent for more details. Your goal is to get clarity and documentation.

  • For any repairs, ask for the "Three Ws": Who did the work? When was it done? Is there a Warranty? Ask for receipts, contracts, and any transferable warranties.
  • For ongoing issues, ask about frequency: If the basement gets damp, does it happen with every rainstorm or only during major hurricanes?
  • For anything marked "Unknown," press for more info: Sometimes this is a legitimate answer, but other times a seller might use it to avoid disclosing a potential problem. Your agent can help you probe gently for more information.