When you're shopping for a home, you're often handed a mountain of paperwork as part of the process, including a set of forms called seller's disclosures. These forms are meant to help buyers make an informed decision about a property, listing any issues or concerns that the seller became aware of while owning the home.
But, not every state has the same requirements when it comes to what a buyer needs to know to make an informed decision and protect their wealth, and some states are surprisingly lax about what a seller has to confess. Keep reading to learn more about some of the disclosures that vary by state so you know exactly what to be on the lookout for if you're buying a new home in one of these areas.
All state disclosure information is pulled from sold.com unless otherwise noted.
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Radon
Radon is a toxic gas that seeps up through the soil under a home, entering into the air where it can build up over time, causing health issues like cancer. But, despite the health risks that can be associated with high levels of radon, not every state requires sellers to disclose a home's radon status when listing the property for sale.
In fact, a 2022 survey from the Center for Health Law and Policy Innovation at Harvard Law School found that only 34 states (and the District of Columbia) have radon disclosure laws, and what is required to be in those disclosures can vary by location.
Some of the states without required radon disclosures include Alabama, Arkansas, North Dakota, Virginia, Idaho, West Virginia, and Wyoming, according to The Policy Surveillance Program.
Infestation
Just about every state has disclosures that require a seller to note any history of pest infestations. While some states have additional forms that address specific pests — Florida and Indiana both have forms that specifically ask for information about termites, and Arizona asks about reptiles — some states are a little more vague about exactly what types of pests need to be noted in the seller's disclosures.
Not only that, but some disclosures focus more on current infestations, giving sellers a chance to gloss over some past problems. For example, South Carolina's infestation disclosure mentions wood destroying organisms, but not mice. Additionally, the forms ask for the details of present pest infestations, conceivably allowing sellers to omit the details of past problems.
Asbestos
Asbestos is a toxic chemical, just like radon. And, just like with radon, you wouldn't know that it was there unless the seller had tested for it in the first place. But, when it comes to who is required to test for asbestos — and report the findings — the rules are different depending on where you live.
Those selling a property in Wisconsin, Minnesota, and Maine are required to disclose the presence of asbestos in writing.
And, in states like Wyoming, where real estate transactions happen using a rule known as "caveat emptor" — which essentially means "buyer beware," and puts the onus of detecting a home's possible defects onto the buyer — sellers don't have to disclose information about the property. Instead, the responsibility to uncover any issues with the property falls solely to the buyer.
Neighborhood or city issues
Living in a noisy neighborhood can be bad for a lot of reasons, especially when it comes to sounds that could potentially keep would-be homeowners up all night. But, not every state requires sellers to notify prospective buyers of potential nuisance issues.
Sellers in Tennessee, California, and Virginia are required to point out known issues relating to noise, but not many other states have a separate form and line for things that aren't directly related to the property itself.
Basic home features
You'd think that details surrounding a home's major appliances and systems — like dishwashers and HVAC systems — would be pretty standard across the board. However, not every state has the same disclosure requirements when it comes to all those "extras" that come along with the home.
Places like Delaware and Hawaii have specific questions on their disclosure forms regarding the home's appliances, and whether or not they'll be included in the sale, while states like Alabama do not.
Criminal activity
Depending on the state, a homeowner may not have to be too open about certain criminal activity in the area. For example, in California and Kansas sellers are required to let buyers know if any of the neighbors are registered on a watch list like the one used in connection to Megan's Law. However, that's not required in places like Minnesota and Georgia.
Similarly, some states have laws on the books when it comes to illegal activity that could've taken place in the home. Utah has a law requiring sellers to disclose if the property has a history of "use, storage, or manufacture of methamphetamines." Homes sold in Virginia, Louisiana, Indiana, and Colorado have similar disclosure rules.
Death in the house
The requirements around disclosing deaths in the house vary state-to-state. Some sellers are only required to report deaths in the past three years, and others only have to share if there was a violent or "noteable" death that could create a stigma around the house, making it harder to sell later on.
For example, home sellers in Minnesota aren't required to report deaths, but Georgia homeowners are required to share that info with potential buyers.
Hauntings
Hauntings are another disclosure requirement that varies state-by-state. That could be because determining what qualifies as a haunting could be incredibly subjective, as one person's haunting is another person's, huh?
Like with death, Minnesota sellers aren't required to report paranormal activity. However, things aren't quite as straightforward in New Jersey. While homeowners aren't required to disclose hauntings up front, they do have to answer honestly if a prospective homebuyer asks if the house is haunted.
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Bottom line
Buying a home can be a complex process. Between all of the different things you need to consider, and the forms you'll need to read through, there's a lot to take in.
One of the best ways you can prepare yourself financially for this investment is by partnering with a trusted real estate professional who can help you make sense of all of the information you're receiving. They should be able to help you decide if any potential concerns raised in the disclosures are worth exploring further, or if you should just cut your losses and walk away.
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