Back to Basics: The Seller’s Disclosure

Clear guidance for sellers navigating required disclosures in Pennsylvania

When selling a residential property, many questions arise about the required disclosures. The Real Estate Seller Disclosure Law (with some exceptions) applies to the transfer of any interest in real estate that includes between one and four residential dwelling units. Below, we simplify the key points and address common “what-if” scenarios.

✅ Who needs to complete a Seller’s Property Disclosure Statement (SPD)?

If you’re selling a property that has one to four residential dwelling units, you are required to complete the Seller’s Property Disclosure Statement (Form SPD) unless one of the specific exemptions applies. 
Some of the frequent questions include:

• Commercial property or mixed-use ?
  Even if a property has retail or non-residential space, if it includes up to four dwelling units, the SPD is required. For example, a building with a ground-floor shop and three apartments above must have the form completed. On the other hand, a six-unit apartment building is outside the one-to-four unit range and thus the SPD wouldn’t apply.

• Property sold “as-is”?
  Labeling the sale “as-is” does not exempt the seller from completing the disclosure. The duty to disclose material defects remains.

• Investor or never lived in property?
  Yes — even if the seller never occupied the property, the disclosure requirement still applies. Previous owners or tenants may have had valuable information that must be passed along. 

• Seller using power of attorney (POA)?
  Using a POA does not relieve the seller’s disclosure duty. The POA must provide as much accurate information as possible, and if there are gaps, additional explanations may be helpful. 

• Estate sale?
  If the property is still in the estate and the estate is selling the property, one of the exclusions may apply. However, once beneficiaries take title, the disclosure obligations apply as they would to any seller. 

• Manufactured home?
  If it serves as a dwelling unit, the SDP requirement applies — the definition focuses on dwelling units not just site-built houses. 

🔍 Why this matters

Completing the SPD accurately protects you from potential liability. Incomplete or misleading disclosures can lead to legal consequences for sellers and agents. It’s not enough to assume “we sold it as-is” or “tenant didn’t complain” — the law demands transparent disclosure regardless of occupancy or condition. 

📝 Tips for Sellers (and Listing Agents)

• Review the SPD carefully and answer truthfully every question.

• Consider what you know about the property’s history: tenant issues, repairs, structural concerns, environmental matters, or anything that might be a “material defect.”

• If working with a POA or estate, document any limitations in knowledge and disclose accordingly.

• For mixed-use or unusual property types, confirm whether the one-to-four dwelling‐unit rule triggers the SPD.

• Ensure the listing agent reviews the disclosure requirements with you and reminds you that “as-is” is not an exemption.

✅ Bottom Line for Sellers

The Seller’s Disclosure Statement is a foundational document in Pennsylvania real estate transactions. Whether you’re selling a single-family home, a duplex, or a mixed-use building with residential units, make sure you understand whether an SPD is required — and that it is completed accurately. Doing so protects you, the listing agent, and the buyer.

If you have questions about applying the law to your specific property type or situation, we’re here to help you navigate the process with confidence.

Understanding the Seller’s Property Disclosure — From the Buyer’s Perspective

When purchasing a home, most buyers focus on inspections, financing, and negotiations. But one of the most important documents you’ll review in the process is the Seller’s Property Disclosure Statement (Form SPD). While sellers are required to share what they know about the property, it’s equally important for buyers — and their agents — to understand what the disclosure does and does not tell you.

This guide breaks down how to read the disclosure effectively, what counts as a material defect, and how to ensure you’re getting a clear and accurate picture of the property before closing.

✅ What Is a “Material Defect”?

The Seller’s Disclosure Law requires sellers to disclose material defects, which are issues that:

• Have a significant adverse impact on the property’s value, or

• Pose an unreasonable safety risk to people living there.

In simpler terms, these are meaningful problems — not minor quirks or ordinary aging.

Not considered a material defect:
Normal wear and tear.
For example, a roof or HVAC system nearing the end of its typical lifespan is not automatically a defect unless it is currently failing or malfunctioning.

🔍 What the Disclosure Doesn’t Cover

The disclosure form is not a complete inventory of the home’s condition. It does not list every cosmetic issue or nuisance.

Don’t expect the form to include:

• A squeaky door hinge

• A window that sticks on humid days

• Small drywall scuffs

• A drawer that doesn’t glide perfectly

The form reflects the seller’s knowledge of significant issues, not every minor imperfection that comes with everyday living.

📝 The Seller’s Disclosure Is Not a Warranty

Another common misunderstanding:
The disclosure is not a guarantee that something will continue to function after closing.

For example:

• The seller may note the HVAC system is 15 years old and currently working.

• That does not mean it will continue working for months or years.

• If it fails shortly after closing, that alone does not mean the seller hid information.

The disclosure captures what the seller knows at the time they completed the form — nothing more, nothing less.

✅ Buyers Should Go Beyond the Form

The disclosure is only one piece of your due-diligence process. Buyers should consider their lifestyle, needs, and plans for the property when reviewing and inspecting the home.

Ask Yourself:

In many cases, a seller can be completely truthful — and a buyer can still uncover an issue the seller did not know existed.

✅ Key Takeaway for Buyers

We often advise sellers to “disclose, disclose, disclose.”
But buyers also need to “review, question, and inspect.”

Buyers should:

• Read the disclosure carefully — don’t skim.

• Ask follow-up questions when something needs clarification.

• Conduct thorough, professional inspections.

• Understand the difference between major defects and normal aging.

The goal isn’t perfection — the goal is an informed decision.

Need Help Reviewing a Disclosure or Planning Inspections?

Our team helps buyers:

• Interpret disclosure statements with confidence

• Identify where to ask follow-up questions

• Determine which inspections are appropriate

• Strategically negotiate repairs or credits where needed

Buying a home is a major investment — you deserve clarity every step of the way.

Reach out to schedule a buyer consultation or strategy meeting today.