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Sales Disclosure Form

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Sales Disclosure Form

Property Identification: Street address: Parcel / APN:

Seller Information

Buyer Information

Transaction Details

Financing contingency included:

Proposed Closing Date:    Possession Date:

Disclosure Questions

The Seller must answer each question below to the best of Seller's actual knowledge. For each item mark Yes or No. If Yes, provide explanation in Known Defects and Additional Remarks.

1. Are you aware of lead-based paint or hazards on the property?

2. Are there known material defects in the roof, structure, foundation, or systems (electrical, plumbing, HVAC)?

3. Has the property sustained water intrusion, flooding, mold, or significant moisture damage?

4. Are there any boundary disputes, easements, encroachments, or unrecorded agreements affecting the parcel?

5. Are there any active notices of violation, code enforcement actions, or pending assessments against the property?

Known Defects and Additional Remarks

Acknowledgments and Certifications

The Seller certifies under penalty of law that the information set forth in this Sales Disclosure Form is true and correct to Seller's actual knowledge as of the date of signature. Seller understands that Buyer is entitled to rely on these statements in negotiating the transaction and that Seller has a continuing duty to supplement material facts discovered after execution of this form prior to closing.

Seller acknowledges that this disclosure is not a substitute for inspections, and Buyer is encouraged to obtain independent inspections and investigations. Seller makes no warranty, express or implied, beyond those expressly stated in the purchase agreement. Any warranty or representation not set forth in this form or in the purchase agreement is expressly disclaimed.

Default; Remedies; Governing Law

Remedies for breach of disclosure obligations shall be governed by the purchase agreement and applicable law. In the absence of contrary agreement, the exclusive remedy for material misrepresentation in the disclosure shall include, at Buyer's election and subject to applicable law, rescission or recovery of actual damages. This disclosure and any dispute arising out of it shall be construed and enforced in accordance with the laws of the state in which the property is located.

Signatures

Seller Printed Name:

By:

Date:

Seller Title / Capacity (if signing for entity):

Buyer Printed Name:

By:

Date:

Buyer Title / Capacity (if signing for entity):

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What the Sales Disclosure Form Covers

A Sales Disclosure Form is a written statement provided by a seller that identifies known facts about a property or goods being sold that could affect value or use. In real estate, it commonly lists material defects, past repairs, environmental hazards, and other material facts the seller knows or should reasonably know. The form documents seller representations, creates a record for buyer review, and is often required by state law or local practice. Electronic copies and signatures are routinely used where permitted under ESIGN and UETA.

Why a Clear Sales Disclosure Form Matters

A complete, accurate disclosure reduces post-closing disputes, supports informed buyer decisions, and documents seller compliance with state disclosure statutes. Proper disclosure also helps title companies, insurers, and lenders evaluate transaction risk.

Why a Clear Sales Disclosure Form Matters

Who Prepares and Reviews a Sales Disclosure Form

Sellers typically complete the form with input from listing agents, and receiving parties include buyers, agents, escrow officers, and title professionals.

  • Sellers: Complete and sign; disclose known material facts and defects.
  • Listing agents: Collect, review for completeness, and attach to listing materials.
  • Title/escrow agents: Use the completed form to assess title and closing requirements.

In some transactions attorneys or inspectors review the disclosure; parties should keep a dated, signed copy for their records.

Essential Parts of a Professional Sales Disclosure Form

A well-structured Sales Disclosure Form groups facts logically, uses precise definitions, and includes clear signature and date fields so the record is enforceable and auditable.

Property Details

Full street address, parcel or tax ID, and legal description to remove ambiguity about the asset being sold.

Material Defects

Signed statements listing known structural, pest, electrical, plumbing, or environmental issues the seller is aware of.

Past Repairs

Dates and scope of material repairs or renovations, including whether permits were obtained and final inspections passed.

Hazard Disclosures

Lead-based paint, asbestos, flood zone, or other regulated hazards listed using required language where applicable.

Signature Blocks

Seller and co-owner signatures with printed names and dates, plus agent acknowledgement and space for notarization if required.

Attachments

Supporting documents such as inspection reports, repair invoices, permits, and seller-provided warranties.

Core Data Elements Needed

Seller name: Full legal name(s) exactly as on ID
Property address: Street, city, state, ZIP
Disclosure date: MM/DD/YYYY date of signing
Known defects: Concise list of material issues
Contact details: Phone and email for follow-up
Signatures: Typed or handwritten signature with timestamp

Step-by-Step: Completing a Sales Disclosure Form

Follow these sequential steps to prepare, verify, and distribute the disclosure with a clear audit trail.

  • 01
    Gather records: Collect permits, inspection reports, and repair invoices.
  • 02
    Complete form: Enter accurate property facts and known defects.
  • 03
    Review: Have agent or attorney verify completeness.
  • 04
    Distribute: Provide signed copy to buyer, title, and escrow.

Setting Up an Online Disclosure Workflow

Configure a simple eSubmission flow so each signer receives the form in the correct order and an audit trail is preserved.

Field Configuration
Authentication Email link or SMS code
Signature type Simple e-signature with audit trail
Routing order Seller → agent → buyer → escrow
Retention Secure storage with access logs

Where to Send the Completed Disclosure

After signing, distribute certified copies to involved parties and attach the disclosure to transaction records used by title and escrow.

  • Buyer or buyer agent: Deliver signed copy for review before contract execution
  • Listing broker: Attach to listing file and MLS where required
  • Title/escrow: Provide to identify title exceptions or insurance needs
  • Local recorder: Record only if state or instrument requires filing

Digital Signing and eSubmission Considerations

Choose a platform that supports common file types, secure storage, and an auditable signature trail for the Sales Disclosure Form.

  • File formats: PDF and Word DOCX supported
  • Integrations: CRM, title, and cloud storage integrations
  • Security: AES-256 at rest; TLS 1.2/1.3 in transit

Ensure the platform can produce a timestamped certificate of completion and retain a copy per legal retention rules; confirm HIPAA or other addenda where data sensitivity requires it.

Timing and Key Deadlines for Disclosures

Provide disclosures at points that allow buyer review and statutory rescission periods where applicable.

At listing:

Provide disclosure to prospective buyers when property is listed

Before contract:

Deliver disclosure before buyer signs purchase agreement

Upon request:

Provide updated disclosures if material facts change

Pre-closing:

Attach to closing package for title and escrow review

Record retention:

Keep signed copy in transaction file indefinitely per state rules

Common Preparation Mistakes to Avoid

  • Omitting material defects or repairs creates rescission or fraud risk and triggers lender or title disputes.
  • Using vague language like 'no issues to my knowledge' instead of specific facts increases ambiguity and litigation risk.
  • Mismatched names or incorrect legal descriptions delay closing and complicate title transfer processes.
  • Failing to provide attachments (permits, invoices) that support repair claims often leads to buyer rejection or claims.

Consequences of Incomplete or Incorrect Disclosures

Contract rescission: Buyer may cancel transaction
Monetary damages: Seller liable for repair or compensation
Title delays: Settlement postponement pending resolution
Insurance exposure: Coverage disputes for undisclosed hazards
Regulatory fines: State penalties where disclosure statutes apply
Reputational harm: Broker or seller trust erosion

eSignature Pricing Snapshot for Sales Disclosure Workflows

Compare representative starting prices and feature signals across common eSignature solutions to align cost and compliance for Sales Disclosure Forms.

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 Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About Sales Disclosure Forms

Answers to common legal, practical, and technical questions when preparing and eSigning a Sales Disclosure Form.


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