Disclosure is the requirement that a seller reveal known material facts about a property's condition that could affect its value or a buyer's decision. Most states require sellers to complete a written disclosure form covering issues like the roof, foundation, systems, water damage, and past repairs.
Material defects that the seller knows about and that are not readily observable generally must be disclosed. Some conditions, such as lead-based paint in homes built before 1978, are subject to specific federal disclosure requirements.
Failing to disclose a known material defect can expose a seller, and sometimes their agent, to legal liability after the sale. Disclosure rules, and whether a state follows caveat emptor or mandatory disclosure, vary significantly by state.