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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 Virginia, 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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Virginia Requirements for Property Disclosure Statement

  • Virginia Residential Property Disclosure Act (Virginia Code § 55.1-700 through § 55.1-714)

    The primary Virginia law governing property disclosures that requires sellers to provide purchasers with either disclosures of material defects or a disclaimer statement. The Act specifies the format and timing of disclosures and covers residential real property consisting of not less than one nor more than four dwelling units.

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

    Federal law requiring disclosure of known lead-based paint and lead-based paint hazards in housing built before 1978, including providing purchasers with an EPA-approved lead hazard information pamphlet and a 10-day period to conduct a paint inspection or risk assessment.

  • Defective Drywall Disclosure (Virginia Code § 55.1-708)

    Virginia law requiring disclosure of the presence of defective drywall in the property that the owner knows about, which may cause corrosion and emit sulfurous odors.

  • Military Air Installation Disclosure (Virginia Code § 55.1-704)

    Requires disclosure if property is located in a noise zone or accident potential zone of a military air installation, which may affect property value and livability.

  • Pending Building or Zoning Violations (Virginia Code § 55.1-703)

    Requires disclosure of any pending violation of local zoning ordinances, building codes, or other similar regulations affecting the property.

  • Historic District Disclosure (Virginia Code § 55.1-705)

    Requires disclosure if the property is located in a historic district designated by the locality or the Commonwealth, which may restrict modifications to the property.

  • Flooding Disclosure (Virginia Code § 55.1-703)

    Requires disclosure if the owner has knowledge that the property is located in a dam break inundation zone or a flood plain, or has experienced flooding within the past 5 years.

  • Methamphetamine Manufacturing Disclosure (Virginia Code § 55.1-709)

    Requires disclosure if the property was previously used to manufacture methamphetamine and has not been cleaned according to Department of Health guidelines.

  • Septic System Disclosure (Virginia Code § 32.1-164.1:1)

    Requires disclosure of information regarding the presence, condition, and maintenance of on-site sewage disposal systems (septic systems) on the property.

  • Homeowners Association Disclosure (Virginia Code § 55.1-509 (POA); § 55.1-1808 (Condominiums))

    Requires disclosure of the property's inclusion in a homeowners association or condominium association, including providing the purchaser with association documents and fee information.

  • Megan's Law Disclosure (Virginia Code § 55.1-707)

    While not requiring specific disclosure of sex offenders in the area, Virginia law allows purchasers to research this information and provides a disclaimer statement regarding the availability of the sex offender registry.

  • Mold Disclosure (Virginia Code § 55.1-703)

    While not specifically mandated, disclosure of known mold issues falls under the general disclosure requirements for material defects that could affect health and safety.

  • Radon Gas Disclosure (Virginia Code § 55.1-703)

    Requires disclosure of known radon gas issues on the property, which is a naturally occurring radioactive gas that can cause health problems.

  • Mineral Rights Disclosure (Virginia Code § 55.1-703)

    Requires disclosure if mineral rights to the property have been sold or are otherwise not conveyed with the land, which could affect the purchaser's use of the property.

  • Cemetery or Burial Ground Disclosure (Virginia Code § 55.1-703)

    Requires disclosure of any cemetery or burial ground located on the property, which may have cultural, historical, or legal implications.

  • Stigmatized Property Disclosure (Virginia Code § 55.1-711)

    Virginia law does not require disclosure of deaths (including those from natural causes, suicide, or homicide) or other acts that have no physical impact on the property, unless specifically asked by the buyer.

  • Wastewater System Operator Disclosure (Virginia Code § 55.1-706)

    Requires disclosure if the property is served by an on-site wastewater treatment system that has a design capacity of more than 1,000 gallons per day and requires a certified operator.

  • Stormwater Management Facility Disclosure (Virginia Code § 55.1-703)

    Requires disclosure if the owner has knowledge of a stormwater detention facility located on the property that is maintained by the owner.

  • Conservation or Other Use Restriction Disclosure (Virginia Code § 55.1-703)

    Requires disclosure of any conservation or other use restrictions on the property, such as easements, that may limit the use or development of the property.

  • Interstate Highway Noise Abatement Disclosure (Virginia Code § 55.1-704)

    Requires disclosure if the property is located adjacent to an interstate highway and is subject to potential noise impacts, particularly if in a priority noise abatement area.

Frequently Asked Questions