3.2 Pennsylvania Seller Disclosure Requirements
Key Takeaways
- The Real Estate Seller Disclosure Law (68 Pa.C.S. Sec. 7301 et seq.) requires sellers of 1–4 unit residential property to give the buyer a written Seller's Property Disclosure Statement before the agreement is signed
- Sellers disclose only known material defects; they have no duty to investigate or hire inspectors to find unknown problems
- If the disclosure is not delivered before signing, the buyer may terminate the agreement and recover the deposit before signing or occupancy — there is no statutory 5-day rescission window
- Nine categories of transfer are exempt, including transfers by estate fiduciaries, sheriff/foreclosure sales, transfers between co-owners or to a spouse/lineal relative, and first sale of new construction
- A seller who willfully or negligently fails to disclose a known defect is liable for the buyer's actual damages; suit must be filed within 2 years of final settlement
The Real Estate Seller Disclosure Law
The Real Estate Seller Disclosure Law (RESDL), codified at 68 Pa.C.S. Sec. 7301 et seq., requires the seller of residential real estate to deliver a written Seller's Property Disclosure Statement (SPDS) to the buyer. The PAR form most agents use is the SPD. The law applies to transfers of property with one to four dwelling units.
The statement is a disclosure of known conditions, not a warranty. The seller's standard is what the seller actually knows — RESDL does not require the seller to investigate, test, or hire professionals to uncover hidden defects. A seller who genuinely does not know answers 'unknown.'
Timing (heavily tested)
- The disclosure must be delivered to the buyer before the agreement of sale is signed.
- If it is not delivered before signing, the buyer may terminate the agreement and recover the deposit before signing or before taking occupancy.
- Correction of a common myth: There is no statutory 5-day 'rescission' window in RESDL. The buyer's protection is the right to terminate before being bound, plus a later damages action — not a fixed multi-day cancellation clock. The buyer should still complete independent inspections.
Important: The SPDS supplements but does not replace federal lead-based-paint disclosure, which is separately required for housing built before 1978 and includes the EPA pamphlet and a 10-day lead inspection opportunity.
What Must Be Disclosed
The form walks the seller through dozens of items grouped by system. The seller answers Yes / No / Unknown and explains any 'Yes.'
| Category | Representative items |
|---|---|
| Structural | Roof age/leaks, foundation cracks, basement water, additions/alterations |
| Systems | HVAC, plumbing (well vs. public), electrical panel, water heater, sump pump |
| Water/sewer | On-site septic vs. public sewer, well water quality, prior testing |
| Environmental | Radon test results, mold, asbestos, underground storage tanks |
| Legal/title | Easements, encroachments, boundary disputes, liens, zoning |
| HOA/condo | Fees, special assessments, governing-document availability |
Stigmatized property — what is NOT required
Pennsylvania law excludes certain 'psychological' facts from mandatory disclosure. Under 68 Pa.C.S. Sec. 7308, the following are not material defects and need not be disclosed:
- A death or felony that occurred on the property
- A prior occupant's diagnosis with HIV/AIDS
- Proximity of registered sex offenders (buyer uses Megan's Law registry)
Exempt Transfers
Nine categories of transfer are exempt from the SPDS requirement — generally where the seller has no personal knowledge of the home.
| Exempt transfer | Why exempt |
|---|---|
| Transfer by estate/probate fiduciary | Personal representative never lived there |
| Sheriff's sale / foreclosure / tax sale | Forced judicial sale; no owner knowledge |
| Transfer between co-owners | Parties already know the property |
| Transfer to a spouse or lineal relative | Family transfer |
| First sale of newly built dwelling | Covered by builder warranties |
| Court-ordered transfer | Judicial supervision |
| Transfer by/to government | Public agency |
| Transfer by trust to a beneficiary | Fiduciary lacks occupant knowledge |
| Transfer of property with 5+ units | Beyond the 1–4 unit residential scope |
Seller Liability
A seller who willfully or negligently fails to disclose a known defect is liable for the buyer's actual damages (repair cost or diminished value). The buyer must file suit within 2 years of final settlement. Non-disclosure and misrepresentation are among the leading causes of real estate litigation in Pennsylvania, so accurate, honest completion protects everyone.
The Licensee's Duties Around Disclosure
The disclosure is the seller's statement, but the licensee has independent obligations. Under RELRA and 49 Pa. Code, a licensee may not knowingly participate in concealing a material defect and may not make a material misrepresentation. If a licensee actually knows a 'No' answer is false (for example, the agent personally saw a flooded basement), repeating it as true exposes the agent to discipline and liability — the seller's signature does not shield the agent.
| Party | Disclosure duty |
|---|---|
| Seller | Disclose known material defects truthfully on the SPDS |
| Listing agent | Don't misrepresent; advise the seller to disclose; don't conceal known defects |
| Buyer agent | Advise the buyer to inspect; convey the SPDS; don't suppress known facts |
| Buyer | Read the SPDS, inspect independently, verify important items |
Caveat emptor vs. disclosure
Pennsylvania historically followed caveat emptor ('let the buyer beware'), but RESDL and case law shifted the rule toward affirmative disclosure of known defects. The buyer still bears responsibility to inspect — the SPDS is a starting point, not a substitute for a home inspection, wood-infestation report, or radon test.
Updating the disclosure
If a new defect arises or the seller learns of one after delivering the SPDS but before settlement, the seller should provide an updated statement. A defect that develops between disclosure and settlement (a roof that begins leaking after a storm) is material and should be disclosed; staying silent can support a later damages claim.
Worked scenario
A seller marks 'No known roof leaks,' but two weeks before settlement a heavy rain reveals a leak the seller now sees. The seller should issue an updated SPDS disclosing the leak. If the seller hides it and the buyer discovers the leak after closing, the buyer can sue for actual damages (the repair cost) within two years of final settlement — the exact remedy RESDL provides.
Trap: A frequently missed point is that 'unknown' is a legitimate answer. The seller is not required to crawl the roof or hire an inspector; the duty is to disclose what the seller actually knows, not to investigate.
When must the Seller's Property Disclosure Statement be delivered to the buyer under Pennsylvania's Real Estate Seller Disclosure Law?
A personal representative is selling a home owned by a deceased relative's estate. Which statement about the seller disclosure requirement is correct?
Under Pennsylvania law, which of the following must a seller affirmatively disclose on the Seller's Property Disclosure Statement?