Real Property Disclosures: What Buyers and Sellers Need to Know

By Katherine M. Macol, Esq.

In Connecticut, there are certain disclosure forms that a seller and buyer are required to execute in connection with entering into a contract for the sale and purchase of a home.  These disclosures must be attached to the contract, provide valuable information to a prospective buyer concerning the home and, if applicable, include the following:

Residential Condition Property Disclosure: Requires the seller to disclose information about the condition and systems of the home.   The seller must update the form if revisions are necessary prior to closing and the seller’s penalty for non-compliance is a $500 credit to the buyer at closing. (There are some exemptions to this requirement so be sure to check with your attorney.)

Residential Foundation Condition Report: Requires the seller to disclose foundation or structural issues related to the property. This requirement is for residential property located in a town determined by the Capitol Region Council of Governments to be affected, or potentially affected, by crumbling foundations.

Lead Paint:  Requires the seller to disclose any known lead-paint hazards, provide an Environmental Protection Agency pamphlet to the buyer and provide the buyer with a 10-day inspection period if the home was built prior to 1987.

Mold Disclosure:  Requires the seller to disclosure the presence of mold or conditions that could lead to the growth of mold.

Disclosures help to provide transparency and avoid post-closing issues.  A seller and buyer should pay special attention to the disclosures that may be applicable to the particular transaction.