2.3 DC Property Disclosure Requirements
Key Takeaways
- DC requires sellers of residential property of no more than 4 units to give a written disclosure statement (D.C. Code Title 42, Chapter 13)
- The statement is due before or at the time the purchase agreement is executed
- Disclosure is a good-faith statement based on the seller's actual knowledge; the seller (not the agent) completes it, and 'as-is' does not waive it
- Federal lead-based paint disclosure (EPA pamphlet + 10-day inspection window) applies to all pre-1978 housing, even exempt or as-is sales
- Exemptions exist for court-supervised, estate, and certain government sales, but licensees must still disclose known material defects
The District of Columbia is a mandatory seller-disclosure jurisdiction. Under D.C. Code Title 42, Chapter 13 (Residential Real Property Seller Disclosures), a seller must hand the buyer a written disclosure statement describing the property's condition. The DC state exam contrasts this with caveat-emptor states, so know that DC requires disclosure.
Who Must Disclose, and When
Who Must Disclose
Sellers of residential real property of no more than four (4) dwelling units must provide the real property disclosure statement. Larger multi-family and most commercial properties fall outside this consumer-protection statute.
When to Disclose
The statement must be delivered:
- Before the parties execute the purchase agreement, OR
- At the time the purchase agreement is executed.
Key Point: Unlike caveat-emptor states, DC mandates a written seller disclosure so the buyer has condition information before committing.
What Categories Are Disclosed
| Category | Examples |
|---|---|
| Structural | Foundation, roof, walls |
| Systems | Plumbing, electrical, HVAC |
| Water | Leaks, flooding history, drainage |
| Environmental | Mold, lead paint, asbestos |
| Legal | Easements, encroachments, zoning |
| Known defects | Any material defect affecting value |
Standard: Good Faith Based on Actual Knowledge
DC asks for a good-faith disclosure based on the seller's actual knowledge — not a guarantee of condition.
| Requirement | Explanation |
|---|---|
| Good faith | Honest reporting of what the seller knows |
| Actual knowledge | Report what is actually known, to the best of understanding |
| No duty to investigate | The seller need not inspect or hire experts to find defects |
Important: The seller — not the listing agent or broker — completes and signs the disclosure form. The agent must not fill it in for the seller, though the agent must still disclose any material defects the agent personally knows.
Material Defects
Definition
A material defect is a condition that:
- may impact the value of the property,
- would be important to a reasonable buyer, and
- is known to the seller (or, separately, to the licensee).
| Must Be Disclosed | Examples |
|---|---|
| Physical defects | Foundation cracks, roof leaks, structural movement |
| Environmental hazards | Mold, recurring flooding, contamination |
| Failing systems | Inoperable HVAC, faulty wiring, leaking plumbing |
| Legal encumbrances | Easements, liens, zoning violations |
Scenario: A seller knows the basement floods after heavy rain every spring and has repainted to hide the water line. Even in an "as-is" sale, concealing this known, recurring defect is misrepresentation. The buyer who discovers it can sue for fraud.
Consequences of Non-Disclosure
| Consequence | Details |
|---|---|
| Fraud / misrepresentation claim | Buyer can sue even in an "as-is" sale |
| Liability for repairs | Seller may owe repair costs |
| Attorney fees | May be awarded to the buyer |
| Sale rescission | Possible in serious cases |
"As-Is" Sales Do Not Waive Disclosure
| Factor | Rule |
|---|---|
| Buyer accepts | The property in its current condition, with defects |
| Seller repairs | Not required |
| Disclosure of known defects | Still required |
| Liability for concealment | Still applies |
Key Point: "As-is" limits the seller's duty to repair — it does not eliminate the duty to disclose known material defects. This is a favorite exam trap.
Exemptions From the DC Disclosure Statement
A narrow set of transfers are exempt because the seller usually lacks first-hand knowledge:
| Exempt Transfer | Reason |
|---|---|
| Court-supervised sales | Probate, foreclosure, bankruptcy |
| Estate / fiduciary sales | Executor or trustee lacks lived knowledge of the home |
| Certain government transfers | Different statutory rules apply |
Note: Exemption from the standardized statement does not authorize concealment. A licensee must still disclose any material defect the licensee actually knows, even in an exempt sale.
Federal Lead-Based Paint Disclosure
Independent of DC law, the federal Residential Lead-Based Paint Hazard Reduction Act (Title X) applies to housing built before 1978:
| Requirement | Detail |
|---|---|
| Disclose | Any known lead-based paint and hazards |
| Provide records | Copies of available reports/records on lead |
| Pamphlet | Give the EPA booklet "Protect Your Family From Lead in Your Home" |
| Inspection window | Offer the buyer a 10-day opportunity to test (the buyer may waive it) |
| Form | A signed Lead-Based Paint Disclosure attachment to the contract |
Critical: Lead-based paint disclosure is federally required regardless of DC rules — it applies even to sellers exempt from the DC seller statement, and even in "as-is" sales.
DC Lead-Hazard Rental Rules
DC's own Lead-Hazard Prevention and Elimination Act layers additional duties onto rental housing built before 1978, requiring landlords to provide a lead disclosure and a clearance report before leasing to families with young children or pregnant tenants. Salesperson candidates should know this exists, even though the federal sale rule is the more commonly tested item.
Exam Tip: Match the trigger years — 1978 for lead-based paint (federal and DC rental). Do not confuse it with rent-control coverage (pre-1976 in DC).
When must a DC seller provide the property disclosure statement to a buyer?
Does selling a property "as-is" in DC eliminate the seller's disclosure obligations?
Which of the following MUST be disclosed under federal law for homes built before 1978?
Who is responsible for completing the DC residential seller disclosure statement?