Buying or Selling Residential Property? Here’s What You Need to Know About Pennsylvania Law
What is the Pennsylvania Real Estate Seller Disclosure Law?
The Pennsylvania Real Estate Seller Disclosure Law requires that a seller of residential property provide a signed and dated copy of a property disclosure form, which covers specific topics relating to the condition of the property for a prospective buyer prior to the signing of an agreement of sale.
This Law requires that a seller discloses to a buyer any material defects with the property known to the seller. A “material defect” is a problem with the property that would have a significant adverse impact on the value of the property or that involves an unreasonable risk to people on the property. Any seller who fails to disclose a known material defect, either by misstatement or omission, permits a buyer to recover actual damages caused by violation of this Law.
What is a seller required to disclose to a buyer?
A seller is not required to inspect or investigate the property for the benefit of the buyer, but is required to disclose any material defects that they know or have reason to know, affect the property. This duty continues throughout the sales transaction, so if any information contained in the Disclosure Statement is later found to be inaccurate, the seller is obligated to notify the buyer of the inaccuracy.
A seller is not liable for error, inaccuracy, or omission of information regarding a material defect of the property if they had no knowledge of it, or if they reasonably believed that the defect had been corrected. Sellers may be protected from liability if they relied on information provided by certified licensed professionals, such as a home inspector, contractor, or public agency if that information is within that expert’s field.
What is a real estate agent required to disclose to the buyer and seller?
A real estate agent also has a duty under this Law. An agent is required to disclose to a buyer any information about a material defect — of which the agent has actual knowledge — that was not disclosed to the buyer. The agent is not required to conduct an independent inspection of the property for the benefit of the buyer but will have liability under this Law if he/she has actual knowledge of a material defect that was not disclosed by the seller or was otherwise misrepresented on the Disclosure Statement.
Additionally, an agent representing a seller must advise the seller of their responsibility to disclose material defects as outlined by the Law and must provide the seller with a property disclosure form to be completed by the seller and to produce the completed form to a buyer or the buyer’s agent.
What specific information about the property must be disclosed to a buyer?
Specific information regarding the following areas of the property must be disclosed:
- Seller’s expertise in contracting, engineering, architecture, or other areas related to the construction and conditions of the property and its improvements
- The date the property was last occupied by the seller
- Basements and crawl spaces
- Termites/wood-destroying insects, dry rot, and pests
- Structural problems
- Additions, remodeling, and structural changes to the property
- Water and sewage systems or service
- Plumbing system
- Heating and air conditioning
- Electrical system
- Other equipment and appliances included in the sale
- Soil, drainage, boundaries, and sinkholes
- Presence of hazardous substances
- Condominiums and other homeowner’s associations
- Legal issues affecting the property title or that would interfere with the use and enjoyment of the property
- Condition, if known, and location of all stormwater
What about defects that develop after closing?
A seller or a real estate agent is not subject to liability for damages relating to disclosed material defects or material defects that develop after the closing.
Filing a claim under the PA Real Estate Disclosure Law
There are common law and statutory claims for relief that may be filed by a buyer who finds a material defect with a property that was recently purchased — and who has reason to believe the problem existed prior to taking ownership — and that the seller failed to disclose it. A buyer may present a claim under the Pennsylvania Real Estate Seller Disclosure Law, 68 Pa.C.S. §§7501, up to two years from the date of closing. A claim may be provable through information gained from neighbors, utility bills, former Disclosure Statements, failed sales inspection reports, home warranty claims, and/or insurance claims.
A buyer who believes they have a claim on a property should discuss their concerns with a real estate lawyer before moving forward.
Likewise, a seller who is contacted regarding a claim on a property that they recently sold should discuss the matter with a real estate lawyer as soon as possible to understand the potential liability for damages.
Pittsburgh Real Estate Attorneys
Krista Kochosky is Chair of the Real Estate Group at The Lynch Law Group. For more information on the Pennsylvania Real Estate Seller Disclosure Law or other real estate matters, please contact her at email@example.com or (724) 776-8000. You may also submit your information through our Contact Form and someone from our office will reach out to you.