Seller disclosure requirements in Idaho

Is a disclosure form required by law?

Yes. Idaho Code § 55-2504 requires anyone who intends to transfer residential real property to complete all applicable items on the form. “Residential real property” means property with one to four dwelling units, or a single unit in a larger structure that is individually owned, including mixed residential and commercial use (§ 55-2503). The Act covers sales, exchanges, installment sale contracts, lease-options, other options to purchase, and ground leases coupled with improvements. It also applies to non-owner-occupied rental property.

What the form covers

The Legislature printed the standard form in § 55-2508. Sellers may use an alternative form if it includes the same disclosure information and the mandatory statements (§ 55-2506). The form asks about:

• Annexation and city services: whether the property is in an area of city impact or could be annexed, whether it receives city services outside city limits, and whether a written consent to annex is recorded.
• Appliances and systems included in the sale that are not working properly.
• Specific problems with basement water, foundation, roof (condition and age), well, septic system, plumbing, drainage, electrical and heating.
• Title conditions, such as encroachments, easements, zoning violations and lot line disputes.
• Hazardous materials or pest infestations.
• Additions or alterations made without a building permit.
• Any other problem, legal or physical, that the seller knows about.

The form is a statement of what the seller actually knows. By statute it is not a warranty and not a substitute for inspections (§ 55-2507). The form itself encourages the buyer to get professional inspections. See what a home inspection costs.

Exemptions

Section 55-2505 lists 16 exempt transfers. The ones most buyers will meet:

Foreclosed homes are therefore often sold without a seller’s form. The buyer’s own inspection matters more there. See our Idaho foreclosure guide.

Timing, delivery and the right to rescind

The seller must deliver a signed, dated copy to the buyer or the buyer’s agent within 10 days of accepting the offer (§ 55-2509). Delivery may be by hand, ordinary or certified mail, or fax (§ 55-2510). The buyer must sign, date and return a copy to acknowledge receipt.

If the buyer receives the form (or an amendment) after signing the purchase agreement, the buyer may rescind in a signed, dated writing that identifies the specific disclosure objected to. The writing must reach the seller within 3 business days of receipt, or the right is waived (§ 55-2515). The buyer owes nothing for rescinding and gets the deposit back.

If something changes before closing, the seller must amend the form. The buyer’s right to rescind is then limited to the amendment (§ 55-2513).

What happens if a seller does not disclose

An incomplete disclosure does not cancel the sale: “No transfer, subject to this chapter, shall be invalidated solely because of the failure of any person to comply” (§ 55-2517). But a person who willfully or negligently violates the Act is liable for the buyer’s actual damages.

Sellers are not liable for errors outside their personal knowledge, or for information supplied by public agencies or inspectors when they used ordinary care in passing it on (§ 55-2511). Disclosure must be made in good faith, meaning “honesty in fact” (§ 55-2516). The Act also leaves in place any other disclosure duty in Idaho statutes or common law (§ 55-2514). Licensed agents keep all their own duties, including advising a buyer client to seek professional inspections and tax or legal advice (§§ 55-2518, 54-2087).

Federal lead-based paint rule (homes built before 1978)

Federal law adds a separate duty for most homes built before 1978. According to the EPA, the seller must:

1. Give the buyer the pamphlet “Protect Your Family From Lead In Your Home.”
2. Disclose any known lead-based paint or hazards, and hand over available records and reports.
3. Provide the required Lead Warning Statement.
4. Give the buyer 10 days to conduct a paint inspection or risk assessment, unless the parties agree in writing to another period or the buyer waives it.
5. Keep a signed copy of the disclosures for three years after the sale.