fsbo
Disclosure
A seller's required statement of known material facts about a property, mandated by most state laws to inform buyers before contract.
In depth
Property disclosures, often on standardized state forms, list known defects, environmental hazards, prior repairs, water issues, HOA information, and similar facts. Federal disclosures cover lead-based paint for pre-1978 homes. Misconception: disclosures do not require the seller to inspect or test; they cover only what the seller actually knows. However, willful concealment of known defects creates liability. Practically, FSBO sellers must complete and deliver disclosures, often with the offer or contract. Inadequate disclosures are a leading source of post-closing litigation. Sellers should disclose generously, when in doubt include the item. In seller-financed transactions, disclosures protect both parties by establishing a record of known facts at closing. Buyers should review carefully and ask follow-up questions.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.