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 What is a seller's disclosure? 

Before a sale is complete, a seller must inform the buyer of anything that may interfere with the buyer's decision to purchase the home. A statement must be created a signed by the home seller and buyer listing all pre-existing faults or required information pertaining to the home. Anything that could be potentially harmful to the new occupant or the home itself must be addressed in the seller's disclosure.

The home disclosure must be done by the seller. A real estate agent acting on behalf of the home seller will not be allowed to provide the home disclosure. There are different policies depending on the state where the home is located regarding home disclosures. Though certain states require different disclosures, federal law requires a lead paint disclosure if the home was built before 1978. Typically a buyer is given 10 days to complete a lead paint inspection.

Material facts are considered to be anything that might sway a potential buyer's opinion of the home. In most states, a seller is required to disclose the knowledge of a death occurring in the home. Most potential buyers are not deterred by a death in the home as long as it was not gruesome or due to foul play. There are some sellers that suspect haunting or presence of ghosts from a former deceased occupant. Disclosure of such information is not required, but you may consider releasing the information to the potential buyer. If there is knowledge of how the death occurred, it may be shared. In some states, a death caused by AIDS should not be disclosed. A discrimination claim could follow in response to an AIDS death being disclosed as it might fall into a protected class of unnecessary disclosures.

In many states, any sort of potential external hazards need to be disclosed. Noise pollution, ground pollution, fire hazards, and natural hazards are among the list of potential external issues that the potential buyer needs to be aware of. There are additional regional matters that may need to be taken into consideration such as flood zones, earthquake damage, insect infestations, mold, and radon. Some areas now require knowledge of a pre-existing "methamphetamine lab." Toxic chemicals may contaminate porous materials like carpet, counters, plaster, and walls. It will be necessary to investigate the specific information required to be disclosed by the state in which the home for sale is located.