3.2 Georgia Seller Disclosure Requirements

Georgia Is a Caveat Emptor State

Georgia follows caveat emptor — "let the buyer beware." Unlike many states that mandate a standardized transfer-disclosure statement, Georgia has no statute requiring a seller to complete a disclosure form. The burden to investigate sits primarily on the buyer.

The critical exam distinction is passive silence vs. active concealment:

Worked example: A seller knows the basement floods. If a buyer never asks, mere silence is generally permitted. But if the seller repaints the stained wall and runs a dehumidifier to hide the smell during showings, that is active concealment — fraud that survives an "as-is" clause and exposes the seller to rescission and damages.

Georgia courts allow a buyer to recover for fraud where a seller actively conceals a latent defect (not discoverable by ordinary inspection) and the buyer justifiably relies. An "as-is" sale does not immunize a seller from fraud.

The Stigmatized-Property Statute

O.C.G.A. § 44-1-16 protects sellers and licensees from liability for failing to disclose stigma facts. The following are NOT material facts requiring disclosure:

• A death by any cause (including homicide or suicide) on the property
• A felony previously committed on the property
• That an occupant was infected with a disease (e.g., HIV) not transmitted by occupancy

A licensee also has no duty to disclose the proximity of a registered sex offender; buyers are directed to the state registry. A licensee may not, however, knowingly make a false statement when directly asked.

Voluntary Disclosure Forms

Even though no form is mandated, most agents present the GAR Seller's Property Disclosure Statement because it documents what the seller knew and reduces later fraud claims.

Once a seller chooses to fill out the form, the answers must be truthful — voluntarily disclosing then lying converts silence into misrepresentation.

Licensee Disclosure Duties Under BRRETA

While the seller may have no form duty, the Brokerage Relationships in Real Estate Transactions Act (BRRETA) imposes duties on the licensee. Under O.C.G.A. § 10-6A-5, a broker engaged by the seller must still disclose to a buyer (customer or client) all adverse material facts pertaining to the physical condition of the property — and any material facts the buyer could not reasonably discover — that are within the licensee's actual knowledge.

What the Licensee Must vs. Need Not Disclose

The Knowledge Standard

The licensee's duty is keyed to actual knowledge plus what a buyer could find by reasonable inspection:

1. The licensee must actually know the fact (no duty to investigate or discover hidden defects).
2. The fact must not be reasonably discoverable by the buyer's own inspection.
3. The fact must be material — it would affect a reasonable buyer's decision.

Trap: BRRETA does not require a licensee to conduct an independent inspection or verify the structural soundness of a home. The duty is to disclose what is known, not to hunt for the unknown.

Federal Disclosures That Override State Law

Federal law applies on top of Georgia's caveat emptor framework.

Lead-Based Paint (Pre-1978 Housing)

The federal Residential Lead-Based Paint Hazard Reduction Act (Title X) requires, for any home built before 1978:

• Give the buyer the EPA pamphlet "Protect Your Family From Lead in Your Home."
• Disclose any known lead-based paint and provide any available reports.
• Include the lead warning statement and signed acknowledgment in the contract.
• Offer the buyer a 10-day opportunity to conduct a lead inspection or risk assessment (the buyer may waive it in writing).

Scenario: A 1965 Atlanta bungalow is sold "as-is." The seller still must hand over the EPA pamphlet, disclose any known lead paint, and offer the 10-day inspection window. Federal lead law is not waived by Georgia's caveat emptor rule or by an as-is clause.