Seller Disclosure Laws by State – Lead Paint, Flood Risk & More

According to the National Association of Realtors, over 20% of home sales involve disclosure-related negotiations. Seller disclosure laws are rules that require a homeowner to share certain known facts about a property before selling it. These can include structural problems, prior repairs, the presence of hazardous materials (like asbestos or lead paint), or whether the home has ever experienced flooding or fire damage.

• In some states, sellers must complete an official form (such as a “Residential Property Condition Report”).

• In “buyer beware” or caveat emptor states, sellers aren’t required to use a form but can still be held liable for hiding major known defects.

• Federal law adds another layer for homes built before 1978, requiring lead paint disclosures nationwide.

Yes. Federal law requires sellers of homes built before 1978 to disclose any known information about lead-based paint or lead hazards, regardless of what state they are in. Sellers must:

• Provide buyers with an EPA-approved pamphlet about identifying and controlling lead paint hazards.

• Include a disclosure form in the sales contract.

• Allow buyers up to 10 days to conduct a lead inspection or risk assessment if they want.
  This rule applies in all 50 states, so even in “buyer beware” states, lead paint disclosure is non-negotiable.

Not in every state. Flood disclosure laws vary widely:

• Some states, like New York, recently passed laws requiring sellers to disclose whether a property is located in a FEMA floodplain or has a history of flooding.

• Other states (like Alabama, Georgia, or Florida) generally leave flood risk disclosures up to buyer due diligence, though sellers can still be liable if they knowingly hide flood damage.

• Even if not state-mandated, many mortgage lenders and insurance carriers require a flood zone check during closing.

For homeowners: if you’ve experienced repeated flooding or water damage, disclosing it upfront builds trust and helps avoid lawsuits later.

Consequences vary by state but can include:

• Contract cancellation: The buyer may back out of the deal if they discover nondisclosure before closing.

• Lawsuits for damages: Buyers can sue after closing if they uncover hidden defects (like mold, termites, or foundation issues).

• Civil penalties: Some states impose fines for failing to follow mandatory disclosure rules.
  Even in “buyer beware” states, sellers cannot intentionally conceal known defects—courts usually side with buyers if fraud is proven.

Not always.

• Residential sales (single-family homes, condos, 1–4 units) usually have stricter disclosure requirements.

• Commercial properties may be subject to fewer mandatory disclosures, with negotiations left to the buyer and seller.

• As-is sales don’t remove disclosure duties—you can sell “as-is,” but you still must disclose what you know.