Pennsylvania seller disclosure: what sellers must tell buyers

Is a disclosure form required by law?

Yes. Section 7303 says any seller who intends to transfer an interest in real property must disclose material defects known to the seller by completing all applicable items in a property disclosure statement. The State Real Estate Commission, part of the Department of State, writes the form (§ 7304) and publishes the “Seller’s Property Disclosure Statement” on its website. A seller may use a longer form that asks for more.

The law defines a material defect as a problem that would have a significant adverse impact on the property’s value, or that involves an unreasonable risk to people on the property (§ 7102). A system that is near or past the end of its normal useful life is not, by that fact alone, a material defect.

What does the form cover?

Section 7304(b) lists the subjects the form must cover. Among them:

How and when must the seller deliver it?

• Before the contract. A signed, dated copy must reach the buyer before the seller and buyer sign the agreement of transfer (§ 7303).
• Accepted delivery methods. Personal delivery, first class mail, certified mail with return receipt, or fax, to the buyer or the buyer’s agent (§ 7305). The sale of a home to several co-buyers needs delivery to only one of them.
• No required investigation. The seller does not have to inspect or research the property. If a fact is unknown, the seller may answer with the best information available (§§ 7306, 7308).
• Updates. The seller may amend the disclosure in writing before the agreement is signed (§ 7312). If something disclosed becomes inaccurate before settlement, the seller must notify the buyer (§ 7307).

Who is exempt?

Section 7302 lists two exceptions to the law:

1. Transfers by a fiduciary in the course of administering a decedent’s estate, a guardianship, a conservatorship or a trust.
2. Transfers of new, never-occupied construction, but only if the buyer has a written warranty of one year or longer, the home was inspected for building code compliance, and a certificate of occupancy or code compliance has been issued.

A condominium unit seller discloses only about the seller’s own unit, not the common elements (§ 7302(b)). Local governments cannot add their own disclosure mandates; ordinances older than the law stay in force but cannot be expanded (§ 7315).

What happens if a seller does not disclose?

A sale is not invalidated just because someone failed to comply. A person who willfully or negligently violates the law is liable for the buyer’s actual damages, and the suit must be started within 2 years after final settlement (§ 7311).

The law also limits liability. A seller is not liable for an error the seller did not know about, or one based on a reasonable belief that a defect had been fixed. A seller is also protected when relying on information from a public agency, home inspector or licensed professional, if the seller did not know it was wrong (§ 7309). An agent is liable only with actual knowledge of an undisclosed material defect (§ 7310). A buyer has no claim under the law for defects that were disclosed, or that arise after the agreement is signed or after settlement (§ 7314). The statute adds that its list of items does not replace other duties to avoid fraud or misrepresentation (§ 7313).

Buyers therefore should not treat the form as a warranty. Pair it with a professional inspection. Pennsylvania’s Home Inspection Law requires the inspection report to say that an inspection covers visible conditions on the day of the inspection and does not address latent defects (68 Pa.C.S. § 7508). See home inspection cost for what an inspection runs, and closing costs in Pennsylvania for the rest of the buying budget.

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

This rule is separate from the state form. For most pre-1978 housing, the EPA says that before the buyer signs a contract the seller and agent must:

• give the buyer the pamphlet Protect Your Family From Lead In Your Home;
• disclose known lead-based paint and hazards, and hand over available records and reports;
• include a Lead Warning Statement in or attached to the contract;
• allow the buyer 10 days to inspect for lead, unless both agree in writing to a different period or the buyer waives it;
• keep signed disclosures for 3 years.

The EPA says the rule does not cover housing built after 1977, zero-bedroom units, housing certified lead-free by a certified inspector, or foreclosure sales.