What Must Sellers Reveal in Disclosures?

By Jamie Reece

20+ years as Principle & Managing Broker, proud UW Business grad, loves competition & negotiating hard, achieving client’s goals thru statistical & opportunity analysis. Can be found sailing, biking, volunteering, or hanging with family when not actively engaged in creating a spreadsheet.

Selling your home involves more than just putting up a “For Sale” sign and finding the right buyer. In Washington State, like many others, there’s a crucial step in the transaction process that often determines the success and smoothness of your sale: property disclosures. Today, we’re diving into what you need to disclose when selling your property in Washington, highlighting the importance of transparency and how it benefits both sellers and buyers.

The essence of property disclosures is to enhance transparency and provide crucial information to the buyer. This step is not just about fulfilling a legal requirement; it’s about ensuring that buyers understand exactly what they are purchasing, thereby reducing their risk and fostering a better ownership experience. For the real estate market, such transparency leads to more secure and vibrant transactions. Moreover, comprehensive disclosures by sellers can significantly decrease the risk of post-transaction complications.

Types of Disclosures

1. Community disclosures. The first set of disclosures usually involves information about the community, such as covenants, conditions, restrictions, and details regarding the Homeowners Association (HOA), if applicable. This information is typically readily available in a title report or through direct contact with the HOA. It’s crucial to openly share any conditions or restrictions that might affect how a buyer can use the property or the expectations placed upon them by the community.

For properties with extensive HOA involvement, a resale certificate may be necessary. This certificate includes not only the rules and regulations but also financial statements and board meeting minutes, providing a comprehensive overview of the HOA’s operations and the buyer’s responsibilities.

2. Federal disclosures. In Washington State, federal disclosure requirements are relatively minimal. However, the need to disclose the presence of lead-based paint in properties built before 1978 is a federal mandate. Sellers are required to disclose their knowledge about the presence of lead-based paint and provide any available reports or records. Along with this information, sellers also distribute a federal EPA pamphlet discussing the risks associated with lead-based paint and protective measures.

3. State-mandated seller disclosure form. The most detailed disclosure comes through the state-mandated seller disclosure form. Sellers are asked to disclose any material information or defects within the home. Transparency about past issues and how they were resolved can significantly increase buyer confidence. This disclosure not only covers current conditions but also the seller’s efforts to maintain or improve the property, offering a clearer picture of what the buyer is investing in.

It’s essential for buyers to understand that while seller disclosures provide valuable insights, they are not a substitute for a thorough home inspection. A professional inspection is crucial in identifying potential issues that may not be covered or apparent in the seller’s disclosure.

For sellers, it is clear: if in doubt, disclose. Engaging in open and honest communication about the property not only protects you from future legal complications but also builds trust with potential buyers. If you’re unsure about what to disclose, consult with your real estate broker for guidance.

Remember, property disclosures are a fundamental aspect of selling your home in Washington State. They ensure a transparent, fair, and smooth transition of ownership, benefiting both sellers and buyers. If you have questions or need assistance with your property disclosures, don’t hesitate to reach out to us by phone or email.

Thank you for joining us in this discussion on property disclosures in Washington State. We hope this guide helps you navigate the complexities of selling your home with confidence and success.