Disclosure

A disclosure statement is a document provided by the seller of a property that details negative aspects of the property. Leaks in the ceilings, plumbing issues, insect infestations, and even problem neighbors can and should be included in a disclosure statement. Any repair or remodeling work done by the seller should also be disclosed, including any applicable permits required for the work. Disclosure statements provide a potential buyer with information relevant to the buyer's decision to go ahead with a purchase. Regulations for disclosures vary from state to state, with some states imposing more stringent requirements. Failure to disclose pertinent information about serious issues can result in a judgement for punitive damages against the seller in an action known as "allegations of failure to disclose." The disclosure document provided by the seller is a legally binding document and is admissible in court.