Sellers should disclose known material defects. It protects buyers and sellers alike. When a seller is upfront about the issues they know about, the buyer can make an informed decision, and the seller reduces the risk of disputes after closing. In the North Georgia mountains, where homes often rely on wells, septic systems and wood construction, honest disclosure is especially important. Here is a guide to what sellers should think about when completing a disclosure. This is general information, not legal advice; if you have questions about your obligations, talk with a real estate attorney.
What Disclosure Means
A disclosure is the seller’s statement about the condition of the property, based on what the seller knows. In Georgia, sellers commonly complete a seller’s property disclosure statement as part of the listing and contract process. The form asks a series of questions about the home’s systems, structure, history and surroundings.
The focus is on known material defects: problems the seller is aware of that could affect the value of the property or a buyer’s decision to purchase it. A seller is not expected to know everything, but should not hide or misrepresent what they do know.
Why Honest Disclosure Protects Sellers
Some sellers worry that disclosing a problem will scare buyers away. In practice, disclosure tends to help:
- Fewer surprises at inspection. When buyers already know about an issue, the inspection is less likely to derail the deal.
- Stronger trust. Buyers who feel the seller has been honest are more comfortable moving forward.
- Reduced risk after closing. Hiding a known defect can lead to disputes or legal claims after the sale.
- Better pricing decisions. Known issues can be priced in or repaired before listing.
Common Items to Disclose
Water intrusion
Water in a basement or crawl space, damp areas after heavy rain, past flooding or drainage problems should be disclosed. Include what was done to address them, such as installing a sump pump, regrading or adding gutters.
Roof leaks
Disclose any past or current roof leaks, even if they were repaired. Note when the roof was replaced or repaired and by whom, if you know.
Septic issues
Backups, slow drains, wet spots over the drain field, repairs or replacements should be disclosed. Share pumping and inspection records if you have them.
Well problems
Disclose issues with water flow, water quality, pump failures or periods when the well ran low. If you have water test results, share them.
Pest history
Termites, carpenter bees, wood-boring insects, rodents or other pests, along with any treatment, should be disclosed. Log and timber homes in particular benefit from a clear pest history.
Boundary disputes
Disagreements with neighbors over property lines, fences, shared drives or access should be disclosed. So should known encroachments or unrecorded agreements about road use.
Other items to consider
- Foundation or structural issues.
- Electrical, plumbing or heating problems.
- Chimney or wood stove issues.
- Mold or past mold remediation.
- Work done without permits, where permits were required.
- Insurance claims on the property.
- Flood zone status or past flood damage.
- Homeowners association rules, fees or special assessments.
How to Complete a Thorough Disclosure
- Gather your records. Repair receipts, inspection reports, septic pumping records, water tests and pest treatment records.
- Walk the property. Look at every room, the crawl space or basement, the attic, the roof line, decks and outbuildings to jog your memory.
- Answer each question carefully. If you do not know, say so rather than guessing.
- Be specific. Rather than “roof leaked once,” say when it happened, where and how it was repaired.
- Update as needed. If something new happens before closing, update your disclosure.
- Ask questions. If you are unsure whether something needs to be disclosed, ask your agent, and for legal questions, an attorney.
Common Disclosure Mistakes
- Leaving out repaired problems. Past issues that were fixed should usually still be mentioned, along with the repair.
- Minimizing problems. Calling a recurring leak “minor” can backfire.
- Guessing. If you do not know the age of the septic system, say so.
- Rushing. Disclosures completed quickly are more likely to miss something.
- Forgetting rental properties. If you rarely visit a cabin, check with property managers about issues they have handled.
What Buyers Should Do with a Disclosure
Buyers, read the disclosure carefully and use it to guide your inspection. If the seller mentions a past roof leak, ask your inspector to look closely at that area. If the septic was repaired, ask for records. A disclosure is a starting point, not a substitute for your own inspection and due diligence.
It is also worth noticing what a disclosure does not say. If a question is answered “unknown,” that is often honest, especially for a seller who inherited a property or used it only on weekends. Treat those blanks as items to investigate yourself, with the right specialist, before your due diligence period ends. A septic inspection, well test, pest inspection and survey can fill many of the gaps.
Sherry Helps Sellers Complete Disclosures Thoroughly
Disclosure forms can feel tedious, but they matter. Sherry helps sellers complete disclosures thoroughly, walking through each section and making sure the information is clear and complete. For any legal questions, she will point you to an attorney.
- Start gathering your records now.
- Make a list of every repair and problem you remember.
- Schedule time with Sherry to go through the disclosure together before you list.
