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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 New Hampshire, 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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New Hampshire Requirements for Property Disclosure Statement

  • General Disclosure Requirement (RSA 477:4-c)

    Requires sellers to disclose all known material defects that could affect the property's value or desirability. This is the foundational obligation for all property disclosures in New Hampshire.

  • Water Supply Disclosure (RSA 477:4-c, II(a))

    Requires disclosure of the type of water system (public, private well, etc.), known problems with water quality or quantity, and date of most recent water test if available.

  • Sewage Disposal System Disclosure (RSA 477:4-c, II(b))

    Requires disclosure of the type of sewage disposal system, its age, date of most recent service, and any known malfunctions or defects.

  • Insulation Disclosure (RSA 477:4-c, II(c))

    Requires disclosure of the presence and type of insulation in the property, including walls, ceiling, and floors if known.

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

    For properties built before 1978, requires disclosure of known lead-based paint hazards and provision of federally approved lead hazard information pamphlet to buyers.

  • Radon Gas Disclosure (RSA 477:4-c, II(d))

    Requires disclosure of known presence of radon gas in the property and any radon tests that have been conducted.

  • Flood Zone Disclosure (RSA 477:4-c, II(e))

    Requires disclosure if the property is located in a designated flood zone or has experienced flooding issues.

  • PUC Regulated Utility Disclosure (RSA 477:4-h)

    Requires disclosure if the property is subject to a property tax surcharge under a Public Utility Commission order.

  • Methamphetamine Production Disclosure (RSA 477:4-g)

    Requires disclosure if the property was used for methamphetamine production and has not been remediated according to guidelines.

  • Homeowners Association Disclosure (RSA 356-B:58 (for condominiums))

    Requires disclosure of any homeowners association, condo association, or co-op, including fees, assessments, and rules affecting the property.

  • Smoke and Carbon Monoxide Detector Disclosure (RSA 153:10-a (reference for requirements))

    Requires disclosure of the presence and operational status of smoke and carbon monoxide detectors in the property.

  • Asbestos Disclosure (RSA 477:4-c, II(f))

    Requires disclosure of known asbestos-containing materials in the property.

  • Underground Storage Tank Disclosure (RSA 146-C (reference for requirements))

    Requires disclosure of known underground storage tanks on the property, including those that have been removed.

  • Boundary Dispute Disclosure (RSA 477:4-c, II(g))

    Requires disclosure of any known boundary disputes or unresolved claims regarding property lines.

  • Structural Defects Disclosure (RSA 477:4-c, II(h))

    Requires disclosure of known structural issues including foundation problems, roof defects, or other significant structural concerns.

  • Mold Disclosure (RSA 477:4-c, II(i))

    Requires disclosure of known mold problems or water intrusion issues that could lead to mold growth.

  • Pest Infestation Disclosure (RSA 477:4-c, II(j))

    Requires disclosure of known pest infestations including termites, carpenter ants, or other wood-destroying insects.

  • Electrical and Mechanical Systems Disclosure (RSA 477:4-c, II(k))

    Requires disclosure of known defects in electrical, plumbing, heating, and cooling systems.

  • Drinking Water Contaminant Disclosure (RSA 485:16-a (reference for standards))

    Requires disclosure of known contaminants in drinking water that exceed state or federal standards.

  • Seller's Exemption Disclosure (RSA 477:4-d)

    Allows certain sellers (estates, foreclosing lenders, etc.) to be exempt from standard disclosure requirements if they have no actual knowledge of property conditions.

Frequently Asked Questions