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Seller Disclosure Obligations and Legal Liability

13 minPRO
3/6

Key Takeaways

  • Lead-based paint disclosure is mandatory for pre-1978 homes with penalties up to $19,507 per violation.
  • State disclosure requirements vary from comprehensive (California, Texas) to minimal (caveat emptor states).
  • When in doubt, disclose—failure to disclose known defects creates greater liability than over-disclosure.
  • Pre-listing inspections, home warranties, and thorough documentation reduce post-sale liability exposure.
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Test Your Knowledge

1.What is the federal penalty per violation for failing to provide lead-based paint disclosure on a pre-1978 property?

2.Does selling a property "as-is" eliminate the duty to disclose known material defects?

3.Which strategy most effectively reduces post-sale liability exposure?