Real Estate Disclosure Checklist

Real Estate Disclosure Checklist: Complete Guide for Buyers and Sellers

Whether you’re buying your first home or selling investment property, following a clear Real Estate Disclosure Checklist prevents legal problems. This guide covers seller disclosures, lead paint notices, HOA documents, environmental hazards, agency forms, tax information, and inspection reports. Our checklist helps you handle disclosure requirements with confidence while protecting your interests throughout the transaction.

Seller’s Property Disclosure Statement

The seller’s property disclosure statement is the most important document on your Real Estate Disclosure Checklist. This form requires sellers to reveal known defects, repairs, and property conditions affecting value or safety. Most states mandate detailed disclosure covering structural issues, roof condition, plumbing and electrical systems, HVAC operation, water intrusion or flooding history, and past repairs or renovations. Sellers must disclose problems they know about or should reasonably know about through property ownership.

Complete disclosure forms honestly and thoroughly to avoid legal liability. Buyers can sue sellers who intentionally hide known defects or make false statements on disclosure forms. Your Real Estate Disclosure Checklist should document all issues regardless of size or perceived importance. Let buyers decide which problems matter to them. Include estimates or receipts for past repairs showing you addressed issues properly. If you’re unsure whether something requires disclosure, include it anyway. Over-disclosure is safer than omitting information that causes disputes later.

Lead-Based Paint Disclosure

Properties built before 1978 require federal lead-based paint disclosure on your Real Estate Disclosure Checklist. The Residential Lead-Based Paint Hazard Reduction Act mandates specific forms and procedures for pre-1978 homes. Sellers must provide EPA-approved lead paint disclosure forms, disclose known lead paint or hazards in the home, provide available lead inspection or assessment reports, and give buyers 10 days to conduct lead inspections. Violations carry penalties up to $16,000 per violation.

Complete lead disclosure requirements even if you don’t know whether lead paint exists. Your Real Estate Disclosure Checklist includes signing the disclosure form stating whether you have knowledge of lead paint. Provide copies of any past lead testing or abatement records. Most pre-1978 homes contain lead paint somewhere since it was standard in homes until 1978. Buyers can waive the 10-day inspection period, but sellers must still provide required disclosure forms and information about lead hazards.

HOA and Condo Association Disclosure

Properties subject to homeowners associations or condominium boards require extensive disclosure documents. Your Real Estate Disclosure Checklist must include CC&Rs (Covenants, Conditions, and Restrictions), bylaws and rules, financial statements and budgets, meeting minutes from the past year, reserve study showing funding for future repairs, pending or planned special assessments, and current HOA fees and payment schedules. Many states require sellers to provide these documents within specific timeframes, typically 10 to 30 days after acceptance.

Review HOA documents carefully before purchasing property. Association rules may restrict rentals, pets, parking, exterior changes, or property use affecting your plans. Financial documents reveal the association’s health and potential special assessments. Your Real Estate Disclosure Checklist should identify any pending litigation involving the association that could result in assessments or restrictions. Buyers typically have contingency periods allowing contract cancellation if HOA documents reveal unacceptable terms or financial problems.

Natural Hazard and Environmental Disclosure

Environmental hazard disclosures inform buyers about natural risks and property location in special zones. Your Real Estate Disclosure Checklist requires disclosure of flood zones, earthquake fault zones, fire hazard severity zones, landslide or erosion areas, and protected wetlands or wildlife habitats. Most states mandate Natural Hazard Disclosure statements prepared by specialized companies reviewing government maps and databases. These reports cost $75 to $200 and protect sellers from liability for missing hazard disclosures.

Disclose known environmental conditions beyond standard hazard reports. Your checklist includes underground storage tanks, soil or groundwater contamination, past hazardous material use, proximity to landfills or industrial sites, and previous environmental assessments or remediation. California’s comprehensive disclosure requirements serve as models for other states. Buyers concerned about specific environmental issues can order Phase I Environmental Assessments during their inspection period identifying potential contamination requiring further investigation or cleanup.

Agency and Dual Agency Forms

Agency disclosure forms explain who represents whom in real estate transactions. Your Real Estate Disclosure Checklist includes agency disclosure forms early in the transaction, typically at first substantive contact with buyers or sellers. Agents must disclose whether they represent the buyer, seller, or both parties in dual agency situations. Understanding representation matters because agents owe fiduciary duties including loyalty, confidentiality, and full disclosure to their clients.

Dual agency occurs when one agent or brokerage represents both buyer and seller in the same transaction. This situation requires additional disclosure and consent from both parties. Your Real Estate Disclosure Checklist should clarify dual agency limitations since agents cannot advocate fully for either party when representing both. Some states prohibit dual agency while others allow it with proper disclosure. Review agency forms carefully and ask questions about representation duties and potential conflicts before signing agreements or making offers.

Property Tax and Zoning Information

Property tax disclosure helps buyers budget for ongoing ownership costs. Your Real Estate Disclosure Checklist includes current property tax amounts, assessment values, special assessments or bonds affecting the property, and tax exemptions or reductions that may not transfer. Buyers should understand that property taxes often increase after sale when properties are reassessed at current market value. Some jurisdictions cap annual increases for existing owners but reassess to full value when properties transfer.

Zoning information affects how buyers can use property. Disclose current zoning designation, permitted uses, nonconforming use status if applicable, and pending zoning changes or development proposals nearby. Your Real Estate Disclosure Checklist should include lot size, setback requirements, building coverage limits, and parking requirements affecting future development. Buyers planning additions or business use should verify zoning allows their intended use before removing contingencies.

Mold, Radon, and Asbestos Reports

Indoor environmental hazards require disclosure when known to sellers. Your Real Estate Disclosure Checklist includes any testing or inspection reports for mold, radon gas, or asbestos in the property. Sellers must disclose known problems even without formal testing. Past water damage, moisture issues, or visible mold growth require disclosure. Radon is a naturally occurring radioactive gas affecting many properties, particularly in certain geographic regions.

Buyers concerned about indoor environmental hazards can order specialized testing during inspection periods. Mold inspections cost $300 to $700 identifying problematic growth and moisture sources. Radon testing costs $150 to $300 measuring gas levels in the home. Asbestos inspections cost $400 to $800 identifying asbestos in insulation, flooring, or other materials. Your Real Estate Disclosure Checklist should include all available reports allowing buyers to make informed decisions. Properties with identified hazards typically require remediation or price adjustments reflecting correction costs.

State-Specific Disclosure Requirements

Research disclosure requirements in your state since rules vary significantly. Some states require minimal disclosure while others mandate extensive forms covering dozens of specific issues. Your Real Estate Disclosure Checklist should include all state-mandated forms plus any local jurisdiction requirements. California, for example, requires extensive disclosures covering earthquake safety, Megan’s Law database notice, military ordnance locations, and airport proximity. Other states have simpler requirements.

Work with experienced real estate agents and attorneys familiar with local disclosure laws. They ensure your Real Estate Disclosure Checklist includes all required forms and follows proper procedures. Missing required disclosures or failing to meet deadlines can derail transactions or create legal liability extending years after closing. State real estate commissions provide disclosure form templates and guidance on their websites helping buyers and sellers understand requirements.

Real Estate Disclosure Checklist Takeaways

Following a complete Real Estate Disclosure Checklist protects everyone in property transactions. Sellers must provide honest, thorough property disclosure statements revealing all known defects and conditions. Pre-1978 homes require federal lead paint disclosure with inspection opportunities for buyers. HOA properties need extensive association documents including financial statements and rules. Natural hazard and environmental disclosures inform buyers about location risks. Agency forms clarify who represents whom in transactions. Property tax and zoning information helps buyers plan for costs and intended use. Mold, radon, and asbestos reports reveal indoor environmental conditions. Your Real Estate Disclosure Checklist ensures compliance with legal requirements while protecting your interests through informed decision-making and proper documentation.