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 Washington State, a property disclosure statement is a legal requirement during the process of selling real estate. The seller must provide the buyer with a 'Form 17'—the official name for the Seller Disclosure Statement. This form requires the seller to disclose any known material or significant defects with the property. The disclosure covers various aspects of the property, including but not limited to the title, water damage, structural issues, systems and fixtures, and any environmental hazards. The seller must answer all questions to the best of their knowledge, indicating whether they are aware of any issues. If the seller is unaware of a problem, they must state this explicitly. Failure to provide a complete and truthful disclosure can lead to legal consequences, including the possibility of the buyer rescinding the sale or seeking damages for any undisclosed defects discovered after the transaction is completed. It's important to note that the disclosure requirements may not apply to certain types of property sales, such as foreclosure sales or transfers between family members.