What Is a Seller's Disclosure Supposed to Include?

In Summary:

• A seller’s disclosure outlines what the seller knows about the home’s condition, including systems, structure, and legal or environmental issues.
• In Washington State, most residential sales require a completed Seller Disclosure Statement (Form 17), answered based on true knowledge.
• Buyers can use the disclosure to guide inspections, negotiations, or a decision to move forward with support from Schulte & Co..

A seller’s disclosure, or a disclosure statement, is a description from the seller detailing exactly what they know about a property’s condition. However, not every new buyer knows about this important document, and many find themselves typing, “What is a seller’s disclosure?” into Google.

Getting the seller’s disclosure wrong can significantly slow a sale. It may even reduce your sale price, especially if it forces the property back onto the market after it goes under contract. 

Below, you can discover what such a disclosure should cover if you are a seller, how to read it if you are a buyer, and when both parties may want to bring in Schulte & Co. for the next steps in pricing and strategy.

What Is a Seller's Disclosure in Washington State?

In Washington state, many residential sellers may not know what disclosures in real estate are and entail:

In Washington, most sales require completion of a Seller Disclosure Statement (Form 17) for improved residential real property.

Note: In this context, “improved” residential property includes one that has a dwelling on it.

The form contains several yes/no (or “Don’t know”) questions about the property, including its:

• Structure

• Systems

• Utilities

• Environmental conditions

• Legal issues

• Neighborhood factors

This form’s details help buyers understand what to expect and make it harder for sellers to omit key information, clarifying the material facts they must disclose. For example, Washington law typically requires the seller to answer the form based on true knowledge, and they must only list something as “don’t know” when that is genuinely true. However, deliberately omitting known problems can create significant legal risks.

If the buyer is out of state, whether you or the other party, ensure everyone understands the nuances of Gig Harbor’s and Washington state’s disclosure standards.

Key Issues a Seller's Property Disclosure Must Include

Washington seller’s disclosures focus on a range of issues, including:

• Structural issues

• System problems

• Water and drainage issues

• Environmental hazards

• Utilities

• Remodeling

• Repairs

• Permit status

• Insurance and damage history

If the seller learns new information after making their disclosure statement, they must update or amend the document. They should not hide it.

At the same time, buyers who receive the form will have a short window, typically three business days, to rescind their offer and cancel the contract, often doing so if they are unhappy with what the disclosure reveals. Alternatively, they can renegotiate the deal to resolve any issues before proceeding with the purchase.

Do You Have to Disclose a Death in a House?

Washington does not require sellers to disclose deaths or crimes that may have occurred on the property. However, when the events have caused or revealed problems, the seller must still disclose any related physical defects or safety issues. Even then, what is in the document can be limited to only what is materially relevant to the disclosure.

However, if the seller is directly asked about specific circumstances, including what led to the damage, they must not misrepresent the situation. Asking about death and crime is a common follow-up question to learning about specific patterns of damage, so you should be ready to answer them.

What If a Seller Lied on a Disclosure Statement?

If you believe that a seller lied on a disclosure statement, then you should start by calmly documenting your concerns before talking to an agent. If necessary, investigating legal options may be needed.

When you work with Paige Schulte’s team, you can expect us to take such a situation extremely seriously, helping you ensure you have all the correct documentation and giving you a stronger footing as you move forward with your next steps.

We can discuss whether the issue is likely a newly developed problem or a pre-existing condition. If it is new, then there may be room to negotiate based on what you learn about the property. If the issue is particularly problematic, however, we can provide you with contacts for Washington real estate attorneys you may wish to speak with.

Should things escalate, we typically retain copies of key signed documents and related records from your property transaction that you may find helpful to make the process smoother.

How to Read a Disclosure Statement as a Buyer

The disclosure statement should guide you in where to focus your own inspections and any questions you may have for the seller. You should review each section carefully, comparing the details to ensure they match what the seller told you and your own notes and photos from showings. If you find any inconsistencies, document them for discussion later. 

Then, ask your agent if there are any insights they may have, as someone like Schulte & Co. will have key insights on every step of the home buying process, including disclosure issues related to waterfront concerns, such as:

• Moisture

• Views

• Flooding

• Commute routes

Based on the disclosure, you can decide whether to return to the negotiating table within the timeline of the purchase agreement. Alternatively, you could proceed or even walk away should your resolve be certain.

Common Signs a Disclosure May Need More Detail

If there are any sections left blank or have vague notes, such as “fixed” or “resolved” without explanation, you will need more information than that. Also, any existing issues that lack a description, such as “foundation issues,” should prompt follow-up questions or further inspection of the property.

Getting the Help You Need with Schulte & Co

Asking “What is a seller’s disclosure?” is your first step toward ensuring you perform a robust analysis on any documents you receive. Then, as you review it, use what you learned above to identify red flags and, with your agent, conduct additional inspections as needed.

If you need help or require someone to walk you through the process, reach out to Schulte & Co. to ensure you have an agent on your side who understands Gig Harbor’s seller strategies. Our local expertise and data-driven support can help you every step of the way, keeping buyers and sellers aligned as they move toward closing.

FAQs About Seller Disclosures

What is a seller’s disclosure?

A seller’s disclosure is a statement completed by the seller that outlines what they know about the property’s condition, including structural issues, system problems, legal concerns, and environmental factors.

What must be disclosed on a seller’s disclosure in Washington State?

In Washington, sellers of most residential properties must complete Form 17, which covers items such as structure, utilities, environmental issues, permits, repairs, and known legal concerns.

Do you have to disclose a death in a house?

Washington State does not require sellers to disclose deaths or crimes that occurred in a home, unless they resulted in physical defects or safety issues that materially affect the property.

What happens if a seller lies on a disclosure?

If a seller knowingly misrepresents or omits material facts, buyers may have legal remedies. Buyers should document concerns and consult a real estate professional or attorney for guidance.

How should buyers use a seller’s disclosure?

Buyers should review disclosures carefully and use them to guide inspections, ask follow-up questions, and decide whether to negotiate, proceed, or exit within contractual timelines.