Every state has rules about what sellers must tell buyers before a sale closes. Get it wrong, and you face lawsuits, rescinded contracts, or worse. The specifics vary dramatically by state — what's required in California would fill a small book, while some states have minimal formal requirements.
This guide covers what you need to know, state by state, with a focus on the eight states where ShopProp operates. At ShopProp, a managing broker reviews every disclosure on every transaction — not because it's optional, but because it's the standard every seller deserves.
What Sellers Typically Must Disclose
While requirements vary, most states require disclosure of known material defects. Here are the most common categories:
| Category |
What to Disclose |
| Structural Issues |
Foundation cracks, roof leaks, settling, load-bearing wall modifications |
| Water & Moisture |
Past flooding, water damage, mold, drainage problems, leaks |
| Environmental Hazards |
Lead paint (pre-1978), asbestos, radon, underground storage tanks |
| Pest Infestations |
Termites, rodents, bed bugs — past or present |
| Systems & Appliances |
HVAC, plumbing, electrical issues, age of major systems |
| Legal & Title |
Easements, liens, boundary disputes, HOA violations, pending litigation |
| Neighborhood |
Noise, odors, sex offender proximity (state-dependent), planned developments |
| Renovations |
Unpermitted work, DIY repairs, additions without permits |
| Deaths & Stigma |
Deaths on property (state-dependent), haunting claims (state-dependent) |
Federal Requirement: All sellers of homes built before 1978 must disclose known lead-based paint hazards under federal law (42 U.S.C. § 4852d). This applies in every state, regardless of state-specific disclosure rules.
ShopProp States: Disclosure Requirements
Here's what's required in each state where ShopProp is licensed to help you sell:
🏠 Washington (WA)
License #9004 • Managing Broker: Robert Luecke #18615
Form: Seller Disclosure Statement (Form 17)
- One of the most comprehensive in the country — 6 pages, 80+ questions
- Covers title, water, sewer, structural, systems, environmental, lead paint, neighborhood
- Seller has 5 days to provide after mutual acceptance
- Buyer has 3 days to review and can rescind
- Some exemptions: foreclosures, court-ordered sales, new construction
🏠 California (CA)
License #01890638 • Managing Broker: Robert Luecke #01881220
Forms: TDS + SPQ + NHD + Lead Paint
- Most extensive disclosure requirements in the US
- Transfer Disclosure Statement (TDS) — mandatory for most sales
- Seller Property Questionnaire (SPQ) — supplemental details
- Natural Hazard Disclosure (NHD) — flood, fire, earthquake zones
- Megan's Law, Mello-Roos, supplemental tax disclosures
- Agent visual inspection also required
🏠 Arizona (AZ)
License #O674161000 • Managing Broker: Robert Luecke #BR673997000
Form: Seller's Property Disclosure Statement (SPDS)
- 9-page comprehensive form covering 200+ items
- Affidavit of Disclosure required for unincorporated areas
- Must disclose: structural, mechanical, water, environmental, neighborhood
- Swimming pool barrier compliance disclosure required
- No "as-is" exemption from disclosure obligations
🏠 Texas (TX)
License #756082-B • Managing Broker: Robert Luecke
Form: Seller's Disclosure Notice (TAR-1406)
- Covers condition of property, additions, foundation, roof, HVAC, plumbing
- Must disclose: previous flooding, termites, radon, lead paint, HOA details
- Exemptions exist for foreclosures, estate sales, new construction, court-ordered
- MUD (Municipal Utility District) disclosure required where applicable
- Failure to disclose can result in DTPA (Deceptive Trade Practices Act) claims
🏠 Colorado (CO)
License #EC100108325 • Managing Broker: David Fendler
Form: Seller's Property Disclosure (SPD)
- Covers structural, mechanical, environmental, water, legal issues
- Must disclose: radon (common in CO), mine subsidence areas, wildfire risk
- Green Disclosure required for energy-efficient features
- Not technically mandatory — but nearly all contracts require it
- Caveat emptor with disclosure obligations for known material defects
🏠 Virginia (VA)
License #0225239672 • Managing Broker: Robert Luecke
Form: Residential Property Disclosure Statement
- Virginia is a "buyer beware" (caveat emptor) state
- Disclosure form is relatively basic compared to CA/WA
- Must disclose: known material defects, dam break inundation zones, resource protection areas
- Military air installation noise disclosure for affected areas
- Sellers can disclaim most items — but fraud claims still apply for known concealed defects
🏠 Michigan (MI)
License #6505433466 • Managing Broker: Wayne Loebig
Form: Seller's Disclosure Statement
- Comprehensive disclosure required by Michigan Seller Disclosure Act
- Covers: structural, mechanical, water, environmental, roof, basement, appliances
- Must disclose: farm operations nearby, wetlands, environmental contamination
- Exemptions: transfers between co-owners, foreclosures, new construction
- Buyer has right to terminate within disclosure review period
🏠 Hawaii (HI)
License #RB-22506 • Managing Broker: Robert Luecke #RB-225007
Form: Seller's Real Property Disclosure Statement
- Hawaii-specific disclosures: lava zones, tsunami zones, flood zones, special districts
- Condominium sellers must provide additional association disclosures
- Must disclose: leasehold vs fee simple, special improvement district assessments
- Environmental disclosures: cesspools, injection wells, contamination
- Buyer has 15 calendar days to review (or as specified in contract)
5 Disclosure Mistakes That Cost Sellers Thousands
- "I didn't know about it" (but you should have). Many states apply a "should have known" standard. That water stain you painted over? A court may say you should have investigated and disclosed the leak.
- Assuming "as-is" means no disclosures. Selling as-is means you won't make repairs — it doesn't exempt you from disclosing known defects. This misconception leads to more lawsuits than almost any other disclosure issue.
- Incomplete or vague answers. Checking "unknown" on everything raises red flags and doesn't protect you legally if you actually knew. Be specific and honest — vague disclosures invite legal challenges.
- Forgetting about past issues that were fixed. That foundation crack you repaired in 2019? Still needs to be disclosed. Buyers are entitled to know the history, even if the problem is resolved.
- Not disclosing neighborhood issues. Pending construction, noise complaints, HOA disputes, and boundary disagreements are all material facts that can come back to haunt you.
Why a managing broker matters here: At ShopProp, a managing broker with construction and finance experience reviews every disclosure before it goes to the buyer. They catch issues that regular agents miss — incomplete answers, potential liability gaps, and items that could delay closing or trigger post-sale litigation. This isn't a premium service. It's standard on every ShopProp transaction, from a $300K condo to a $7.5M estate. All for $4,495.
The Disclosure Timeline
Before Listing
- Complete all required state disclosure forms
- Review disclosures with your managing broker
- Consider a pre-listing inspection to identify unknown issues
- Gather documentation for past repairs and renovations
- Check permit records for any additions or modifications
During the Transaction
- Provide disclosures within your state's required timeframe
- Respond promptly to buyer questions about disclosed items
- Update disclosures if you discover new issues during the sale
- Keep copies of everything — signed, dated, delivered
After Closing
- Retain disclosure records for at least 5 years (longer in some states)
- Your disclosure obligations survive closing — incomplete disclosures can still lead to claims
How ShopProp Protects Sellers
Most brokerages hand you a disclosure form and tell you to fill it out. At ShopProp, the process is different:
- Managing broker review. Every disclosure is reviewed by a managing broker with construction and finance expertise — not just a licensed agent. They know what to look for because they've closed 4,000+ transactions.
- Pre-listing guidance. Before you put pen to paper, your team walks you through each section, explains what's required in your state, and helps you document items accurately.
- Flat fee, full protection. This level of oversight costs $4,495 — the same whether you're selling a $400K townhome or a $4M estate. Traditional brokerages charge 2.5-3% ($10,000-$120,000) for the same service — or less.
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