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Property Disclosure Statement Guide: What Landlords, Tenants, and Investors Need to Know

Learn everything about property disclosure statements, including legal requirements for sellers, what tenants should know when their rental is being sold, and how investors can protect themselves during transactions.

Introduction

A Property Disclosure Statement is a legally significant document that requires property sellers to reveal known material defects and issues with a property. Whether you're a tenant whose rental home is being sold, a landlord selling your rental property, or a real estate investor managing multiple properties, understanding disclosure requirements is crucial to protect your interests and avoid potential legal disputes. This guide explains what property disclosure statements entail, who needs to complete them, what must be disclosed, and how these documents affect different parties in real estate transactions.

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Key Things to Know

  1. 1

    Property disclosure requirements vary by state, so always check your local laws or consult with a real estate attorney to understand specific obligations in your area.

  2. 2

    Disclosure statements typically cover known issues only—sellers generally aren't required to hire inspectors to discover unknown problems.

  3. 3

    For landlords selling rental properties, tenant-reported maintenance issues should be included in your disclosures, even if you haven't personally verified them.

  4. 4

    Tenants' lease rights are generally protected when a rental property is sold; the new owner typically must honor existing lease terms.

  5. 5

    Real estate investors should maintain detailed property records and consider pre-listing inspections to facilitate accurate disclosures.

  6. 6

    Selling a property 'as-is' does not exempt sellers from disclosure requirements—you must still disclose known material defects.

  7. 7

    The consequences of inadequate disclosure can include lawsuits, monetary damages, rescission of the sale, and significant legal expenses.

  8. 8

    When in doubt about whether to disclose something, the safer legal approach is to include it in your disclosure statement.

Key decisions before you file

Before you file a Property Disclosure Statement in Georgia, a few decisions shape the document: which option to choose and what each one means. The Property Disclosure Statement guide walks through them.

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Georgia Requirements for Property Disclosure Statement

  • Georgia Seller Disclosure Act (O.C.G.A. § 44-1-16)

    Georgia law requires sellers to disclose known material defects in the property. This includes structural issues, water damage, pest infestations, and other conditions that might affect the property's value.

  • Lead-Based Paint Disclosure (42 U.S.C. § 4852d; 24 CFR Part 35; 40 CFR Part 745)

    Federal law requires disclosure of known lead-based paint and lead-based paint hazards in housing built before 1978, including providing buyers with an EPA-approved information pamphlet.

  • Flood Zone Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose if the property is located in a designated flood zone and provide information about flood insurance requirements.

  • Methamphetamine Production Disclosure (O.C.G.A. § 44-1-16)

    Georgia law requires disclosure if the property was used for the production of methamphetamine or other illegal drugs.

  • Structural Modifications Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose any structural modifications, alterations, or additions made to the property, especially those completed without proper permits.

  • Homeowners Association Disclosure (O.C.G.A. § 44-3-111)

    Sellers must disclose if the property is subject to a homeowners association, including information about dues, restrictions, and covenants.

  • Environmental Hazards Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose known environmental hazards affecting the property, such as radon, asbestos, or toxic waste.

  • Water and Sewer System Disclosure (O.C.G.A. § 44-1-16)

    Information about the property's water source, sewage disposal system, and any known issues with these systems must be disclosed.

  • Boundary Dispute Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose any known boundary disputes or encroachments affecting the property.

  • Death on Property Disclosure (O.C.G.A. § 44-1-16)

    Georgia law requires disclosure of any death caused by violence, suicide, or crime that occurred on the property.

  • Mold and Moisture Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose known mold problems or moisture issues that could lead to mold growth.

  • Pest Infestation Disclosure (O.C.G.A. § 44-1-16)

    Information about current or previous pest infestations, including termites and wood-destroying organisms, must be disclosed.

  • Roof Condition Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose the age of the roof and any known leaks or defects in the roofing system.

  • HVAC System Disclosure (O.C.G.A. § 44-1-16)

    Information about the heating, ventilation, and air conditioning systems, including age, condition, and known defects, must be disclosed.

  • Electrical and Plumbing System Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose known defects in the electrical and plumbing systems of the property.

  • Property Tax Information Disclosure (O.C.G.A. § 44-1-16)

    Information about property taxes, including any pending reassessments or special assessments, must be disclosed.

  • Zoning and Land Use Disclosure (O.C.G.A. § 44-1-16)

    Sellers must disclose known zoning violations or restrictions that might affect the buyer's intended use of the property.

  • Radon Disclosure (O.C.G.A. § 44-1-16)

    Information about known radon testing and results must be disclosed to potential buyers.

  • Military Installation Disclosure (10 U.S.C. § 2684a)

    Federal law requires disclosure if the property is located near a military installation, which may subject it to significant noise or other effects.

  • Material Defect Disclosure Obligation (O.C.G.A. § 44-1-16)

    Georgia law imposes a general obligation on sellers to disclose all known material defects that could affect the property's value or desirability.

Frequently Asked Questions