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Lot Disclosure Statement

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LOT DISCLOSURE STATEMENT

This Lot Disclosure Statement is provided by Seller to Buyer in connection with the sale or transfer of the real property described below. Seller discloses known material facts concerning the physical condition, environmental matters, encumbrances, easements, and other matters affecting the lot. Buyer acknowledges receipt of this statement and is advised to obtain independent inspection, survey, and investigations prior to closing.

Property Identification

Parties

Effective Date of this disclosure:

Lot Characteristics — Indicate Known Conditions

Floodplain / Flood Zone:

Known Drainage or Standing Water Problems:

Steep Slope, Erosion, Landslide or Soil Instability:

Recorded Easements, Rights of Way, or Recorded Access Restrictions:

Recorded or Unrecorded Encroachments on Lot Boundaries:

Shared Access, Shared Driveway, or Road Maintenance Agreement:

Utilities, Wells and Septic

Public Water Available:

Public Sewer Available:

Private Well Present:

Septic / On-site Wastewater System Present:

Environmental & Hazardous Conditions

Known Contamination, Underground Storage Tanks, or Hazardous Materials on Lot:

Wetlands, Springs, or Seasonal Surface Water on Lot:

Improvements, Permits and Restrictions

Are there improvements, foundations, or permitted structures on the lot?

Covenants, Conditions and Restrictions (CC&Rs), HOA, or Special Assessments affecting lot:

Prior Boundary Dispute, Survey Discrepancy, or Pending Legal Matter related to lot:

Surveys, Maps, and Documents Attached

Seller has attached the following documents (check all that apply):





Seller Certification

Seller certifies, under penalty of perjury where applicable, that the information provided in this Lot Disclosure Statement is true and correct to the Seller's actual knowledge as of the Effective Date shown above. Seller makes no warranty as to matters beyond Seller's actual knowledge. Seller recommends Buyer obtain independent inspections, surveys, title review, and environmental assessments. Seller is not obligated to remove or cure any condition disclosed herein unless specified by separate written agreement.

Buyer Acknowledgment

Buyer acknowledges receipt of this Lot Disclosure Statement prior to entering into the purchase agreement or closing and acknowledges the opportunity to conduct investigations and inspections. Buyer accepts that some items disclosed may require permits, corrective action, or further negotiation.

Miscellaneous Provisions

Governing Law: This Lot Disclosure Statement shall be governed by the laws of the jurisdiction where the property is located. Entire Agreement: This Statement constitutes the entire written disclosure by Seller regarding the lot and supersedes any prior written disclosures specific to the lot. Remedies: Buyer and Seller agree that any disputes regarding disclosure shall be subject to the remedies available at law or equity; the prevailing party is entitled to recover reasonable costs and attorneys' fees as allowed by law.

Seller:

By:

Date:

Buyer:

By:

Date:

Enter text✕

What a Lot Disclosure Statement Is and When It Applies

A Lot Disclosure Statement is a written record provided by a seller or developer describing material facts about a specific parcel or lot of real property, including boundaries, easements, utilities, environmental conditions, and known defects. It documents information buyers need to evaluate title, use, and development constraints prior to contract execution or closing. The statement is commonly used in residential and commercial real estate transactions and may be required or recommended by state law, local ordinances, or title insurers to reduce post-closing disputes and underwriting risk.

Why the Lot Disclosure Statement Matters for Transactions

A clear Lot Disclosure Statement reduces legal risk, supports accurate title and insurance underwriting, and gives buyers informed consent about the lot's condition and encumbrances. It creates a written record that can limit post-closing liability when accurate and complete.

Why the Lot Disclosure Statement Matters for Transactions

Who Prepares and Reviews This Statement

Clear roles and timely delivery reduce closing delays and help ensure the disclosure is accepted by buyers and title insurers.

  • Seller or developer: Provides factual information, signs the disclosure, and certifies known conditions.
  • Listing or buyer's agent: Collects disclosures, flags inconsistencies, and advises clients on missing information.
  • Title company or attorney: Reviews disclosure for underwriting, identifies exceptions, and recommends remedial steps.

Essential Parts to Include in a Professional Lot Disclosure Statement

A complete statement lists identifiers, physical and legal attributes, known defects, third-party interests, and signatures. Each section should be concise, factual, and supported by documents when available.

Parcel Identification

Include parcel number, assessor's ID, lot number, and any subdivision or plat reference so the lot is unambiguously identified for title and tax purposes.

Legal Description

Provide the recorded legal description exactly as it appears in the deed or plat; minor truncation or paraphrase can create ambiguity in title searches.

Boundaries & Easements

List known boundary discrepancies, recorded easements, utility corridors, and rights-of-way that affect use, access, or development of the lot.

Utilities & Services

State available utilities (water, sewer, electricity, gas), meter locations, service districts, and any known pending connection or capacity issues.

Environmental & Hazards

Disclose known contamination, flood zone designation, wetlands, sinkholes, or other conditions that materially affect the lot's value or permitted uses.

Affirmations & Signatures

Provide seller statements of accuracy, signature blocks with printed names and dates, and fields for buyer acknowledgement and acceptance.

Security and Data Considerations for Handling Disclosures

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.
Access Controls: Role-based permissions and SSO where available.
Audit Trail: Time-stamped signing events and IP records.
Data Residency: Regional hosting options may be available.
BAA Availability: Business Associate Agreement for covered health data.
Regulatory Standards: Supports ESIGN, UETA, SOC 2, ISO 27001.

Step-by-Step: Completing a Lot Disclosure Statement

Follow these four core steps to prepare, verify, sign, and deliver the statement efficiently.

  • 01
    Gather documents: Collect deed, plat, title report, and utility records.
  • 02
    Populate fields: Enter identifiers, legal text, and known issues precisely.
  • 03
    Review & sign: Confirm accuracy and obtain required seller signatures.
  • 04
    Deliver to parties: Provide copies to buyer, agent, and title company.

How the Disclosure Moves Through the Transaction

The disclosure typically flows from seller to buyer and then to title for underwriting; recordkeeping requirements follow closing.

  • Prepare disclosure: Seller completes statement and attaches documents.
  • Send to buyer: Deliver electronically or in paper before contingencies expire.
  • Title review: Title insurer flags exceptions or curative requirements.
  • Include at closing: Provide final signed copy for escrow and records.

Digital Delivery and Platform Requirements

Ensure the chosen workflow meets ESIGN/UETA requirements for intent, consent, attribution, and retention to maintain enforceability.

  • File formats: PDF or DOCX preserve text and signatures.
  • Integrations: Connectors to CRM, title, or storage systems.
  • Authentication: Email, SMS code, or stronger identity checks.

Timing Considerations and Delivery Windows

Timely disclosure reduces contingency disputes and underwriting exceptions. Deliver the statement early enough for buyer review and title review before closing.

At listing or sale offer:

Provide as soon as a property is marketed or an offer is solicited for transparency.

Before removal of contingencies:

Buyers should receive disclosures before waiving inspection or financing contingencies.

During escrow:

Title review may require updated disclosures before closing.

Prior to closing:

Final signed disclosure should be included with closing documents.

Post-closing updates:

Amendments after closing must be documented and distributed to affected parties.

Key Milestones in a Typical Transaction Timeline

Use this milestone sequence to coordinate disclosure delivery, review, and signature within the transaction schedule.

01

Listing Published

Seller prepares disclosure and supporting records for prospective buyers.

02

Offer Accepted

Buyer receives disclosure for due diligence and contingency review.

03

Due Diligence Period

Inspections and title review may generate requests for clarification.

04

Closing

Final signed disclosure is exchanged and retained by escrow and title.

Common Preparation Errors to Avoid

  • Inaccurate legal description: truncating or paraphrasing the recorded description leads to title search errors and possible re-execution.
  • Omitting easements or encumbrances: failing to list recorded easements can create post-closing title exceptions and insurance claims.
  • Late delivery: providing the disclosure after contingency removal may give buyers grounds to rescind or claim damages.
  • Unsigned or incomplete forms: missing seller signatures or dates often delay closing and require correction.

Potential Legal and Transaction Risks

Civil liability: Seller may face claims for misrepresentation.
Rescission risk: Buyer may seek contract rescission for material omissions.
Title exceptions: Undisclosed encumbrances can limit insurance coverage.
Closing delays: Inaccuracies often require curative action before closing.
Financial penalties: Local statutes or settlement terms may impose fines.
Insurance denial: Title insurers may exclude coverage for undisclosed items.

Practical Examples of How a Lot Disclosure Is Used

These two scenarios show common uses of a Lot Disclosure Statement in residential and commercial settings.

Residential Sale

A seller lists known boundary disputes and a recorded drainage easement

  • Buyer requests survey to confirm boundaries
  • The survey clarifies easement extent, title adds exception, and closing proceeds with updated insurance terms and buyer acknowledgement.

Commercial Subdivision

A developer discloses pending utility extension and a conservation easement on an adjacent parcel

  • Municipal permit timing is noted
  • Lenders and buyers use the disclosure to condition financing and schedule phased infrastructure completion before lot closings.

Comparison: Common eSignature Vendors for Completing Lot Disclosures

Platform selection affects cost, security, and features; compare starting price, trial options, bulk-send capability, audit trail, and envelope limits when evaluating vendors.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Available (Business Premium) Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently Asked Questions About Lot Disclosure Statements

Answers to common questions about completeness, signatures, e-sign validity, and next steps when discrepancies arise.


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