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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 Nevada, 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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Nevada Requirements for Property Disclosure Statement

  • Nevada Seller's Real Property Disclosure Form (NRS 113.130)

    Nevada law requires sellers of residential property to complete the Nevada Seller's Real Property Disclosure Form (SRPD), disclosing all known material defects affecting the property's value or use that are not readily observable.

  • Disclosure Timing Requirements (NRS 113.150)

    The seller must provide the completed disclosure form to the purchaser by the time the purchaser signs the sales agreement, or the purchaser may void the purchase agreement within a specified timeframe.

  • Water Damage and Mold Disclosure (NRS 113.130)

    Sellers must disclose any known water damage, water leaks, or flooding issues that have affected the property, as well as any known mold problems or remediation efforts.

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

    For properties built before 1978, federal law requires disclosure of known lead-based paint and lead-based paint hazards, provision of available records/reports, and a 10-day inspection period for buyers.

  • Structural Components Disclosure (NRS 113.130)

    Sellers must disclose known defects in structural components including the foundation, roof, siding, walls, ceilings, floors, insulation, windows, doors, and plumbing.

  • Mechanical Systems Disclosure (NRS 113.130)

    Disclosure of known defects in mechanical systems including electrical, heating, cooling, water heater, and appliances that are included in the sale.

  • Environmental Hazards Disclosure (NRS 113.130)

    Sellers must disclose known environmental hazards including asbestos, radon gas, toxic materials, underground storage tanks, and contaminated soil or water.

  • Homeowners' Association Disclosure (NRS 116.4109)

    If the property is subject to a homeowners' association, sellers must disclose this fact and provide related documents including CC&Rs, bylaws, rules, and financial information.

  • Construction Defects Disclosure (NRS 40.600-40.695; NRS 113.130)

    Sellers must disclose any known construction defects, including any notices received under Nevada's construction defect laws or pending construction defect claims.

  • Manufactured Housing Disclosure (NRS 489.776)

    For manufactured homes, sellers must disclose specific information about the home's manufacture date, alterations, and compliance with applicable building codes.

  • Water Source and Septic System Disclosure (NRS 113.130)

    Disclosure of the property's water source (municipal, well, other), water rights, and information about any septic system or sewer connection.

  • Methamphetamine Production Disclosure (NRS 40.770)

    Sellers must disclose if the property was used for methamphetamine production, which is considered a material fact affecting the property.

  • Death on the Property Disclosure (NRS 40.770)

    Nevada law does not require disclosure of deaths on the property unless they were caused by a condition of the property that has not been remedied.

  • Stigmatized Property Exemption (NRS 40.770)

    Nevada law specifically exempts sellers from disclosing if a property was the site of a homicide, suicide, or other felony, or if a previous occupant had HIV or AIDS.

  • Mining Operations Disclosure (NRS 113.130)

    Sellers must disclose if the property is located within the vicinity of a mining operation that could affect the property through noise, dust, or other impacts.

  • Military Activities Disclosure (NRS 113.130)

    Disclosure is required if the property is located near military installations or activities that may affect the property through noise, vibrations, or other impacts.

  • Flood Zone Disclosure (NRS 113.130)

    Sellers must disclose if the property is located in a designated flood zone or flood plain, or has experienced flooding in the past.

  • Airport Noise Disclosure (NRS 113.130)

    Properties located near airports may require disclosure of potential noise impacts from aircraft operations.

  • Soil Disclosure (NRS 113.130)

    Disclosure of known soil issues including expansive soil, subsidence, or other soil problems that could affect the property's structural integrity.

  • Compliance with Building Codes (NRS 113.130)

    Sellers must disclose known violations of building codes, zoning ordinances, or other land use laws, including unpermitted additions or renovations.

Frequently Asked Questions