The Etiquette of Real Estate Disclosure

10 November 2025

When buying or selling a home, honesty isn't just a virtue—it's a legal requirement. Real estate disclosure is one of those aspects of the home-buying and selling process that can make or break a transaction. But what exactly needs to be disclosed? And how can you ensure you're handling it properly?

Whether you're a buyer, seller, or even a real estate agent, understanding disclosure etiquette is crucial. So, let's break it down in a way that’s easy to digest.

What Is Real Estate Disclosure?

In simple terms, real estate disclosure is when a seller informs the buyer of any known issues or defects with the property. This could range from structural problems to something as small as a leaky faucet. Think of it as a seller’s way of saying, "Hey, before you commit, here’s everything you should know."

But here’s the catch—disclosure laws vary by state and country. Some places require extensive disclosures, while others operate under a “buyer beware” philosophy, meaning the buyer must investigate the condition of the property themselves.

Why Is Real Estate Disclosure Important?

✅ Legal Protection

Failing to disclose issues can get a seller into serious legal trouble. If major problems surface after closing and the buyer can prove the seller knowingly hid them, lawsuits could follow.

✅ Builds Trust

Transparency fosters trust. A seller who openly shares information about their property builds credibility, making the buyer feel more confident in the transaction.

✅ Avoids Disputes

When buyers know what they’re getting into, there’s less room for post-purchase disputes. No one likes surprises—especially expensive ones.

What Should Be Disclosed?

Not everything needs to be disclosed, but anything that could materially affect the property's value or livability should be on the table. Here are some key issues sellers must typically disclose:

🏚 Structural & Mechanical Issues

- Foundation cracks
- Roof leaks
- Plumbing problems
- Faulty electrical wiring

🌊 Environmental Hazards

- Presence of asbestos, lead paint, or mold
- Past flooding
- Termite infestations

🏠 Previous Repairs & Renovations

- Major repairs or renovations
- Unpermitted work

😱 Psychological Stigmas (Varies by State)

Some jurisdictions require disclosure of things like:
- Deaths on the property
- Criminal activity (drug labs, violent crimes)
- Paranormal activity (yes, some buyers care!)

🏡 Neighborhood Concerns

- Known zoning changes
- Noise complaints
- Disputes with neighbors

How To Handle Real Estate Disclosures Properly

📄 Provide A Written Disclosure Statement

In most states, sellers are required to fill out a Seller’s Disclosure Form. This document lists any known issues, ensuring both parties are on the same page.

🤔 When In Doubt, Disclose!

Not sure if something needs to be disclosed? The rule of thumb—if you’d want to know about it as a buyer, disclose it. It’s always better to be safe than sorry.

🏡 Be Honest, But Don’t Overdo It

You don’t need to scare off potential buyers by listing minor cosmetic flaws. Focus on major issues that affect the function, safety, or value of the home.

🔍 Encourage A Home Inspection

Encouraging buyers to do their due diligence (like getting a professional home inspection) shows confidence in your disclosure. Plus, it reduces liability after the sale.

🏛️ Disclose Early

Don’t wait until the last minute to reveal issues. Buyers appreciate upfront honesty, and early disclosures prevent renegotiations or deal cancellations down the road.

Common Myths About Real Estate Disclosure

❌ "If I Don’t Say Anything, No One Will Know"

Wrong! Hidden problems have a way of surfacing—whether through inspections, neighbors, or lawsuits.

❌ "I Didn’t Live There, So I Don’t Have To Disclose Anything"

Even if you’re an investor or inherited the property, you may still be responsible for certain disclosures.

❌ "It’s The Buyer’s Job To Find Any Problems"

While buyers should do their homework, you can’t intentionally hide known issues. That’s called fraud.

❌ "Minor Repairs Don’t Need To Be Disclosed"

Small fixes like repainting are fine, but if you've done significant repairs (like fixing a leaking roof), you should mention it.

Real Estate Agents & Disclosure

Real estate agents also have a role in disclosure. A good agent will:

✅ Advise sellers on what needs to be disclosed
✅ Provide the necessary disclosure forms
✅ Inform buyers about potential red flags
✅ Encourage buyers to get their own inspections
✅ Ensure compliance with local disclosure laws

An ethical agent won’t help a seller hide information just to close a deal—because that can lead to lawsuits and a bad reputation in the industry.

What Happens If Sellers Fail To Disclose?

If a seller fails to disclose known defects, the buyer may have legal grounds to:

- Cancel the sale if the defect is discovered before closing.
- Sue the seller for damages or repairs after closing.
- Request financial compensation to cover repair costs.

Bottom line: Hiding property issues isn't just bad manners—it’s a legal risk.

Final Thoughts

Real estate disclosure is about more than just following rules; it’s about doing the right thing. When sellers are transparent about their property's condition, they create a smoother transaction, build trust, and avoid legal pitfalls.

If you’re selling, be upfront. If you’re buying, ask questions. And if you're a real estate agent, guide your clients toward honesty.

At the end of the day, a home is one of the biggest purchases anyone will make—so let’s keep things fair, honest, and ethical.