Seller Disclosure Requirements
in Delaware

Contrary to a common misconception, Delaware’s legal framework for property sales is not a pure ‘buyer beware’ or *caveat emptor* state. While buyers certainly bear a heavy burden of due diligence, the Delaware Code mandates specific, affirmative disclosures from sellers of most residential properties. The cornerstone of this obligation is the Delaware Seller's Disclosure of Real Property Condition Report. This is not a casual document; it's a legally binding statement that must be completed by the seller, not their agent, and delivered to the buyer before a final sales contract is signed. I’ve seen cases pivot entirely on the timing and completeness of this form. The buyer’s subsequent right to terminate the contract based on the information revealed in this report underscores its importance in the transaction timeline, making the seller disclosure in Delaware a critical first step in building a transparent and legally sound deal.

Ultimately, the question of what must sellers disclose is answered directly by the categories outlined in the state-mandated form. The Delaware disclosure requirements compel sellers to provide information on a wide array of systems and conditions. This includes the basics like the roof, foundation, plumbing, and electrical systems, but it extends to more nuanced areas. Sellers must report their knowledge of termites or other wood-boring insects, water intrusion issues in basements or crawl spaces, and the functionality of major appliances that will convey with the property. In standard practice, the most litigated items are often those involving past problems that were “fixed.” A seller who simply paints over a water stain without addressing the underlying plumbing leak is creating a classic latent defect scenario, a ticking time bomb for post-closing disputes over property disclosure.

Beyond the structural and system-related items, Delaware’s unique geography and history introduce specific environmental considerations into the property disclosure process. Given its low-lying coastal plain, particularly in Sussex County, sellers must be transparent about whether the property is in a designated floodplain or if they have experienced any flooding, regardless of official maps. Similarly, Northern New Castle County's geology makes radon a significant concern, and the disclosure form specifically addresses radon testing and mitigation. The state’s history also means sellers of homes built before 1978 must provide the federal lead-based paint disclosure. Experts advise clients to consider not just the form's questions but the land itself—disclosing things like underground oil tanks from old farmhouses or proximity to former industrial sites along the Delaware River shows good faith and mitigates risk.

When a seller fails to meet the standards for seller disclosure in Delaware, the consequences can be severe and costly. I’ve litigated cases where a seller’s intentional omission led not just to a lawsuit for damages—covering the buyer’s cost to repair the hidden defect—but also a claim for rescission, which seeks to undo the entire sale. For example, a seller in a historic Dover neighborhood who knew about a crumbling foundation hidden behind a newly finished basement wall was found liable for fraud. The court doesn’t look kindly on active concealment. Understanding the difference between a patent defect (one that is obvious) and a latent defect (one that is hidden) is crucial. While you don’t have to disclose a cracked window a buyer can plainly see, you absolutely must disclose your knowledge of a faulty septic system that only backs up after heavy rain.

To navigate these complexities, the most effective strategy for a seller is radical transparency, often beginning with a pre-listing inspection. Completing the Delaware seller disclosure form with a professional inspection report in hand transforms the process from guesswork into a documented statement of fact. Instead of checking 'Unknown' for the roof's condition, you can check 'Yes' to a past repair and attach the invoice and warranty from the roofer who fixed it. This approach, which I counsel all clients to adopt, not only builds immense trust with potential buyers but also creates a powerful legal shield. An honest and thorough property disclosure, supported by third-party documentation, short-circuits disputes before they can even begin, turning a potential liability into a tool that can actually speed up the sale.

For buyers, receiving the seller’s disclosure is not the end of their investigation; it is the starting point. This document is a roadmap for your own due diligence. If the seller notes a past plumbing leak in the kitchen, you should instruct your home inspector to pay special attention to the flooring and cabinetry in that area and perhaps even use a moisture meter. If the seller checks 'Unknown' on the age and condition of the HVAC system, it may be prudent to hire a specialized HVAC technician for a separate evaluation. The Delaware disclosure requirements provide a crucial window of opportunity. Use the information to ask pointed questions, request further documentation, and tailor your inspections to investigate the specific history and potential vulnerabilities of the home you are about to purchase.