Seller Disclosure Requirements
in Pennsylvania

In years litigating real estate disputes across the Commonwealth, Countless cases show closings unravel due to misunderstandings about seller disclosure in Pennsylvania. Our state follows a modified 'caveat emptor' or 'buyer beware' doctrine, but this is tempered by the powerful Real Estate Seller Disclosure Law (RESDL). This law mandates that sellers of most residential properties provide a comprehensive written disclosure statement to potential buyers. The standard document used is the Pennsylvania Association of Realtors' Seller's Property Disclosure Statement (Form SPD), a multi-page questionnaire that becomes a critical part of the Agreement of Sale. It must be delivered to the buyer before they sign the purchase contract. Upon receipt, the buyer has a right to review it, and if it reveals something unacceptable, it can be grounds for negotiation or even walking away. The core principle isn't that a home must be perfect, but that its known imperfections must be honestly revealed.

Under the RESDL, a seller’s obligations are quite specific, addressing the core question of what must sellers disclose. The law requires the disclosure of any 'material defects' with the property. A material defect is a problem that would have a significant adverse impact on the value of the property or that involves an unreasonable risk to people on the land. The Pennsylvania disclosure requirements cover a vast array of topics, from structural components like the roof and foundation to systems like plumbing, electrical, and HVAC. Market trends show cases hinge on a seller's failure to mention a history of a 'wet' basement, recurring ice dams on a roof in the Poconos, or termite treatments that occurred years prior. The form explicitly asks about these issues, as well as property line disputes, zoning violations, and even alterations made without proper permits from the local municipality.

Pennsylvania's unique geography and industrial history present distinct disclosure challenges. For instance, in Western Pennsylvania, particularly around Pittsburgh and Scranton, mine subsidence is a significant concern; sellers must disclose if they are aware of any past or present mining activity beneath their property. Across the state, but especially in the Reading Prong geological formation covering counties like Berks and Lehigh, radon gas is a prevalent and serious issue that must be addressed on the form. Furthermore, many older homes in Philadelphia, Lancaster, and their suburbs may have buried oil tanks, asbestos insulation, or knob-and-tube wiring. What must sellers disclose regarding these latent hazards? They must reveal any *known* presence of these items. A seller isn’t required to conduct invasive tests, but they cannot conceal knowledge of a decommissioned underground tank or the presence of friable asbestos wrapping pipes in the basement.

When a seller’s disclosure is intentionally incomplete or misleading, the aftermath can be legally and financially devastating. I’ve deposed sellers who thought a fresh coat of 'Killz' paint over a water stain in the ceiling was a clever fix, only to face a lawsuit for fraudulent misrepresentation when the leak reappeared after the first major rainstorm. In Pennsylvania, a buyer who discovers a concealed, known material defect after closing can sue the seller for damages, which often amounts to the cost of repair. In egregious cases of fraud, a court could even order rescission of the sale, forcing the seller to buy back the property and cover the buyer’s expenses. The key legal distinction is that the seller disclosure in Pennsylvania requires revealing *known* defects, not issues the seller merely *should have known* about. This makes the seller's actual, subjective knowledge the central issue in any subsequent litigation.

To navigate these complexities successfully, sellers must approach the Pennsylvania seller disclosure form with meticulous honesty. Experts advise my seller clients to consider a pre-listing home inspection. This accomplishes two goals: it identifies issues they may not have been aware of, and it provides a third-party report that can be shared with buyers, demonstrating transparency and building trust. When filling out the form, be specific. Instead of just checking 'Yes' for a roof leak, write: 'Leak around chimney flashing in 2022, professionally repaired by ABC Roofing, invoice available.' This proactive documentation is your best defense. Honesty not only shields you from future lawsuits but often expedites the sale by preventing surprises during the buyer's inspection period, which is the number one reason deals fall apart.

For buyers, the seller's disclosure is not the final word but the starting point of their due diligence. It is a roadmap highlighting areas that require further investigation. If the seller discloses a past plumbing issue, ensure your home inspector pays extra attention to that area, perhaps using a thermal camera to look for hidden moisture. If the property is in an area known for a specific issue, like radon in Chester County, you should conduct that specific test even if the seller isn't aware of a problem. The inspection contingency period, triggered after you receive the disclosure and sign the contract, is your crucial window to verify the seller's claims and uncover any unknown issues. The Pennsylvania disclosure requirements empower you with information, but it is your responsibility to use that information to conduct a thorough investigation before committing to the purchase.