2.2 Idaho Disclosure Requirements
Key Takeaways
- Under the Idaho Property Condition Disclosure Act (Idaho Code 55-2501 et seq.), the SELLER of residential 1-4 units must deliver the disclosure form within 10 days of acceptance, or the buyer may rescind.
- The seller discloses only to ACTUAL knowledge and is not required to inspect; the licensee does not complete the form for the seller.
- Licensees owe customers honesty and must disclose adverse material facts they actually know about the property's physical condition (54-2088), but need not investigate.
- Federal lead-based paint rules apply to pre-1978 homes: deliver the EPA pamphlet and offer a 10-day inspection opportunity (waivable).
- Under Idaho Code 55-2801, deaths, felonies, suicide, or an occupant's HIV/AIDS are NOT material facts and create no disclosure liability.
The Idaho Property Condition Disclosure Act
The Idaho Property Condition Disclosure Act, codified at Idaho Code 55-2501 et seq., requires the seller of residential real property of one to four dwelling units to give the buyer a completed property condition disclosure form. The exam loves the timing and the responsible party.
- Who completes it: the SELLER, not the licensee. The agent may explain the form, but the seller fills it out and signs it.
- Standard: the seller discloses to actual knowledge only. The seller is not required to inspect or hire an inspector to discover defects.
- Deadline: the seller must deliver the form within 10 days of acceptance of a purchase offer.
- Remedy: if the seller fails to deliver within the 10 days, the buyer may rescind the purchase agreement.
Because disclosure is to actual knowledge, an honest 'I don't know' for an item the seller genuinely has no knowledge of is a permissible answer.
Exemptions From the Disclosure Act
Several transfers are exempt because they are involuntary, between related parties, or involve property the transferor never lived in. Common exemptions include:
- Court-ordered transfers (e.g., probate administration, court decree).
- Foreclosure and trustee's (deed of trust) sales.
- Transfers between co-owners or between spouses (including divorce-related transfers).
- Transfers by will, descent, or inheritance.
- New, never-occupied construction.
The logic: a beneficiary, lender at foreclosure, or builder of brand-new construction lacks the lived-in knowledge the form assumes. On the exam, watch for a fact pattern where a lender selling a foreclosed home is wrongly accused of failing to provide a disclosure — that sale is exempt.
A seller of a single-family home accepts an offer on March 1. The listing agent, trying to be helpful, fills out the Idaho property condition disclosure form based on the agent's own walkthrough and delivers it March 3. Which statement is accurate under the Idaho Property Condition Disclosure Act?
Licensee Duty: Adverse Material Facts
Separate from the seller's statutory form is the licensee's own duty to consumers. Under Idaho Code 54-2088, a licensee dealing with a customer or nonclient must:
- Be honest and commit no fraud or misrepresentation, and
- Disclose adverse material facts that the licensee actually knows about the physical condition of the property.
Key limit: the licensee is not required to investigate the property or discover hidden defects. The duty is triggered by actual knowledge, not by what the licensee 'should have' found. So if a licensee personally knows the basement floods every spring, that adverse material fact must be disclosed to a buyer-customer — even though the licensee owes that customer no agency loyalty. Silence about a known material physical defect is misrepresentation by omission and is actionable.
Federal Lead-Based Paint Disclosure
For any residential dwelling built before 1978, the federal Residential Lead-Based Paint Hazard Reduction Act (and its disclosure rule) applies in addition to Idaho law. Required steps:
- Provide the buyer (or tenant) the EPA pamphlet 'Protect Your Family From Lead in Your Home.'
- Disclose any known lead-based paint or hazards and provide any available records/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 — which the buyer may waive in writing.
The pre-1978 cutoff is the trigger: a 1980-built home is not subject to the rule. The 10-day inspection window is waivable, but the pamphlet and disclosure are not.
Stigmatized Property
Idaho's stigmatized-property statute, Idaho Code 55-2801, declares that certain psychologically troubling facts are NOT material facts and create no disclosure duty or liability. These include:
- A death on or in the property, by any cause (including suicide).
- A felony previously committed on the property.
- That a prior occupant had, or died from, HIV/AIDS or any disease not known to be transmitted through occupancy of the property.
Because these are statutorily non-material, a licensee is not liable for failing to disclose them. The professional-judgment nuance to remember: a licensee should answer honestly if directly asked and should consult the broker before responding, since a knowing false statement could still be misrepresentation. The protection is against the duty to volunteer the stigma — not a license to lie.
Disclosure Timing Summary
Different disclosures have different triggers and deadlines. Use this table to keep them straight on the exam.
| Disclosure | Who is responsible | Trigger / timing | Failure consequence |
|---|---|---|---|
| Agency Disclosure Brochure | Licensee | First substantial business contact, before confidential info | License-law violation |
| Property Condition Disclosure (55-2501) | Seller | Within 10 days of offer acceptance | Buyer may rescind |
| Adverse material facts (54-2088) | Licensee | Whenever actually known | Misrepresentation liability |
| Lead-based paint (federal, pre-1978) | Seller/landlord (with agent compliance) | Before contract; 10-day inspection offered | Federal penalties; rescission rights |
| Stigmatized property (55-2801) | None to volunteer | If directly asked, answer honestly | Not material; no liability for silence |
A buyer touring a 1972 home asks the licensee, 'Did anyone ever die in this house?' The licensee knows a prior owner died there of natural causes. Considering Idaho Code 55-2801 and the lead-based paint rule, what is the best course of action?
Common Disclosure Traps
- 'The agent fills out the property condition form.' No — the seller completes it to actual knowledge; the agent should not author it.
- '10 days to complete the form.' The 10-day clock runs from acceptance and missing it lets the buyer rescind.
- Treating stigma as a defect. Death, suicide, felony, and HIV/AIDS are not material under 55-2801 — but still answer truthfully if asked.
- Lead rule date. The trigger is pre-1978 construction, not the sale price or property type beyond residential.
- 'No agency, so no disclosure.' Even to a customer, the licensee must reveal known adverse material physical facts under 54-2088.