All About the Seller’s Property Disclosure

June 12, 2025

As a seller, did you know that the Seller’s Property Disclosure can actually keep you out of trouble, which translates to mean—keep you from getting sued? When I say it like that, I would think every seller would perk up their ears and pay attention. Who in their right mind would not want to protect themselves from a potential lawsuit?

Let’s start by talking a bit more about what a Seller’s Property Disclosure is. Once a seller is under contract, they typically have a few days to fill out this disclosure where they need to disclose everything they know about the house they are selling. This disclosure will then be sent to the buyer’s agent and then over to the buyers. The whole idea is to let the buyers know everything known about the house—things like the age and condition of included appliances and mechanicals, and if there has been any water damage or settling, just to name a few things. If issues and problems that the seller knows about are hidden from the buyers (even if it’s not intentional), then the sellers did not fill out the disclosure in “good faith”, and that is leaving the door open for a potential lawsuit after closing.

Many sellers think they may save money by not disclosing a problem with their home or potentially scare a buyer away if they overdisclose details on their home. They do not realize that although disclosing the issue may seem like it will potentially cost them a lot of money now or even the sale of their home, a lawsuit could cost them much more in the future.

At TK Homes, when talking with our sellers, we say DISCLOSE, DISCLOSE, DISCLOSE! In fact, we believe in this so much that we take the time to look at what our sellers write on their Seller’s Property Disclosure, and in most cases will send the disclosure back to the sellers to fill out in more detail. We are also willing to take the time to talk through each item on the disclosure with our sellers, if needed, to ensure that they are properly disclosing everything they know about the home. At TK Homes, we believe it’s better to overdisclose on the Seller’s Property Disclosure versus under disclose. We would rather have a potential buyer walk away from the home today due to learning facts about the home versus closing, being upset and filing a lawsuit after closing. We are proud to be able to say that none of our sellers have had any issues or concerns with lawsuits after closing!

TK Homes agents believe in integrity and want the best for all parties involved in a transaction. We have the knowledge, professionalism and experience to guide you down the right path. If you are interested in buying or selling a Denver area home, contact a TK Homes agent today, and we will help make your real estate dreams a reality in an ethical way!

~ Written by TK Homes REALTOR®, Mary Smith