Understanding Material Defects in Property Disclosures with REALTOR® Guidance

A seller can state that there are no material defects on a property on the disclosure form. Brokers who are REALTORS® can help identify what defects need to be disclosed.

Check out NAR's Seller Disclosures Resource Guide today.

The National Association of REALTORS®' Consumer Guide on Seller Disclosures outlines the critical role of transparency when selling a home. Sellers are legally obligated to disclose known material defects—such as structural issues, environmental hazards, or past repairs—that could affect the property's value. Disclosure requirements vary by state and locality, but typically include information about natural hazards, land-use limitations, HOA rules, and any deaths on the property. These disclosures are documented in a legal form, often required before a buyer signs a binding contract. Proper disclosure protects buyers by informing their purchase decisions and shields sellers from future legal liability. Even if uncertain about a defect's significance, it's best practice to disclose it. Real estate professionals can guide sellers through this process to ensure compliance with applicable laws and regulations.