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 Virginia, the property disclosure statement is governed by the Virginia Residential Property Disclosure Act (VRPDA). According to this act, sellers of residential property are required to provide prospective buyers with a disclosure statement. However, rather than detailing specific defects, the seller must provide a disclaimer or disclosure form that alerts the buyer to perform due diligence in various aspects of the property, such as sex offender registry, historic district, military air installation, and others. The seller must disclose if the property is located in one or more special flood hazard areas. Additionally, if the property has a septic system, the seller must provide a separate disclosure regarding the system's functioning. The VRPDA does not require the seller to warrant the condition of the property, but it does require the seller to disclose any known material defects. Failure to comply with these requirements can lead to legal consequences for the seller, including the possibility of the buyer rescinding the purchase contract under certain conditions.