A real estate agent’s explainer reel on seller disclosure law lands on a detail most home sellers get wrong in both directions: they either over-disclose things the law never required, or they stay quiet on something that can get them sued after closing. In a recent Instagram reel, she walks through the actual legal categories, and the split between what’s mandatory and what isn’t is narrower than most sellers assume.
What Sellers Are Required to Disclose
Known material defects top the list: structural problems, roof issues, electrical or plumbing failures, and anything a seller is aware of that affects the property’s safety or value, according to DocJacket’s state-by-state disclosure breakdown. Environmental hazards carry some of the strictest requirements nationwide: lead-based paint disclosure is a federal mandate for any home built before 1978, and most states separately require disclosure of known radon, asbestos, mold or underground storage tank issues if the seller is aware of them. A growing number of states, including Texas, California and Florida, now specifically require flood zone disclosure, a category that’s expanded significantly since 2024 as flood risk maps have been updated.
What Sellers Are Not Required to Disclose
Several states explicitly exempt what’s often called “stigmatized property” information (deaths, or a previous occupant’s HIV status) unless a buyer directly asks the question. DocJacket’s research names Georgia, Massachusetts and Minnesota among the states with this specific carve-out. A separate handful of states, including Alabama, Arkansas, Montana and North Dakota, operate under a caveat emptor standard, meaning the legal responsibility to investigate the property sits primarily with the buyer, and sellers there have minimal disclosure duties beyond avoiding outright fraud. Non-obvious defects a seller genuinely didn’t know about generally aren’t something they can be held liable for either, though the bar for “didn’t know” gets scrutinized closely if evidence suggests otherwise.
Why “As-Is” Doesn’t Mean What Sellers Think It Means
One of the more common misunderstandings involves selling a home “as-is.” According to a legal guide published by Congress Realty, an as-is clause signals that the seller won’t pay for repairs or offer credits; it does not exempt them from state disclosure law. Using an as-is sale to avoid mentioning a known problem is treated as concealment in most jurisdictions, not a pricing strategy. The same guide notes that courts weigh evidence like old repair receipts, prior insurance claims, or fresh paint over a water stain when determining whether a seller knowingly withheld something a buyer should have been told.
What Gets Sellers Into Legal Trouble Most Often
Pending HOA assessments and unpermitted additions are two categories that surprise sellers, since neither feels like a defect in the traditional sense, yet both directly affect what a property is actually worth and both fall under required disclosure in most states. Congress Realty’s guide cites a striking figure on how often this goes wrong: 77% of real estate lawsuits stem from seller disclosure issues. That number reflects how often “I didn’t think it counted” turns into a legal claim after closing, once a buyer discovers a problem that existed, and was known, before they ever signed anything.
The safest rule sellers can follow isn’t complicated: if you know about it and it affects value or safety, write it down before the buyer finds out on their own.
