How the Seller Disclosure Law of PA Affects Buyers and Sellers

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Whether listing your home or purchasing a home in Pennsylvania, a Seller’s Disclosure is one of the most important documents in a real estate transaction. The Seller’s Disclosure is a form used by a seller to provide information about the condition of the property or known material defects in and around a property prior to a sale.  

Prior to 2000, buyers in Pennsylvania were in a position of caveat emptor, or buyer’s beware. It was the responsibility of the buyer to perform their due diligence about the condition of a potential property and uncover any of the wide number of issues that may impact the functionality and safety. The addition of the Seller Disclosure Law is one of many ways in which a consumer of real estate has gained more transparency about a potential purchase.

The Seller Disclosure Law applies to any interest in the transfer of real estate that contains between one and four residential dwellings. Though a buyer is purchasing a property “as is,” with terms that can be negotiated between parties, the seller has an obligation to inform a buyer on the property’s known condition. A seller must provide a seller’s disclosure form prior to a transaction and cannot provide false or misleading information about the property, including known material defects.

Some of the areas of a property subjected to the seller’s disclosure include the roof, attic, basement/crawl space, any additions or alterations, plumbing, HVAC, water and sewer, hazardous materials, windows, water intrusions, and the appliances or fixtures included in the Agreement of Sale, among others.

There are a few exceptions in which a seller does not need to complete a Seller’s Disclosure form.

If the property is being sold through administration, guardianship, conservatorship, or through a trust, the seller’s disclosure is not required, but the noted executor is required to disclose any known defects. If the property is a new construction transfer, the property does not require a seller’s disclosure if the builder issues a home warranty good for one year or longer and the property has been inspected and determined to be up to code according to the local township.

A commercial property that includes four or less dwellings (ex. storefront w/ upstairs units or a farm w/ additional units to rent) is responsible for a seller’s disclosure, however, a multi-unit property with more than four units does not require a seller’s disclosure because multi-unit properties are subjected to use and occupancy certificates prior to a transfer, which require an inspection and specific items in the dwelling to be up to code according to the local municipality.

Condo and coop owners are required to share a seller’s disclosure, but only for their specific unit and not the common areas.

Other exceptions include the transfer from one co-owner to another, a transfer to a spouse or direct descendent, the transfer of a property about to be demolished, or the transfer of a property that is court-ordered either through a foreclosure process or divorce settlement from one spouse to the other.

Even if the seller never lived in the property (i.e. a landlord), the seller still has in-depth knowledge of the property and must complete the SD. A power of attorney must complete the SD, however, they are only required to provide relevant information to the best of their ability.

Depending on the state of the probate process, a seller’s disclosure is not required if the property is being sold by the estate so the proceeds can be distributed to the beneficiaries. However, if the beneficiaries have inherited the property and taken title, they are required to provide a SD.

It’s also important to note that anything that is not material (i.e. previous injuries, deaths, ghosts, mental anguish) does not need to be disclosed.

If a seller is found to be aware of a problem they did not disclose, they may be responsible for any financial losses or repairs incurred by the buyer. Proving the seller withheld information or knowingly covered up defects is sometimes difficult to prove, so contacting a real estate attorney is the first step for a buyer if they uncover an issue that should have been disclosed. Litigation must be presented within two years of settlement.


For an example of how the law has been applied in Pennsylvania, read more here:

 https://www.zarwin.com/news-article/as-is-sales-of-residential-real-estate-and-the-duty-to-disclose-let-the-seller-beware/

For more information on the PA Seller Disclosure Law:

 https://www.pa.gov/content/dam/copapwp-pagov/en/dos/department-and-offices/bpoa/real-estate/Seller%20Disclosure%20Law.pdf