A property disclosure statement is a written document provided by a seller of real property to the prospective buyer stating that the property has a material or significant problem or defect and disclosing the nature of the problem or defect—or stating the seller is unaware of any such problems or defects.
In Utah, a property disclosure statement is a critical document in the process of selling real estate. State law requires sellers to disclose to potential buyers any known material defects that could affect the property's value or desirability. This includes issues with the property's structure, systems, and any other significant problems. The disclosure must be made in writing and typically occurs through a form provided by the Utah Division of Real Estate, known as the Seller's Property Condition Disclosure. The form covers various aspects of the property, including the condition of the roof, electrical systems, plumbing, appliances, and any history of pest infestations or environmental hazards. If a seller intentionally withholds information about defects or misrepresents the condition of the property, they could be held liable for fraud. It's important for sellers to be honest and thorough in completing the disclosure statement to avoid future legal disputes.