What Are Disclosure and Non-Disclosure States?

What are Non-Disclosure States?

In disclosure states, sellers are typically required by law to disclose certain material defects or issues with the property to potential buyers. These defects might include issues like structural damage, plumbing problems, presence of mold or pests, or any other significant problems that could affect the value or safety of the property. The specific requirements for disclosure can vary by state, but generally, sellers must complete a disclosure form detailing any known issues with the property.

In non-disclosure states, sellers are not legally required to disclose such information to potential buyers. However, sellers still cannot actively deceive or misrepresent the condition of the property, as doing so could open them up to legal liability.

It’s essential for buyers to conduct their due diligence regardless of whether they are purchasing property in a disclosure or non-disclosure state. This often includes hiring a home inspector to thoroughly assess the property’s condition and uncover any potential issues before finalizing the purchase. Additionally, buyers should review all available documentation, such as property records and past inspection reports, and ask the seller questions about any concerns they may have.

As of my last update in January 2022, there isn’t a comprehensive list of “non-disclosure states” in the US because all states have some level of disclosure requirements for real estate transactions. However, the extent and specifics of these requirements can vary significantly from state to state.

In some states, the disclosure requirements are relatively minimal, while in others, they are more extensive and stringent. Generally, states have laws that govern what sellers must disclose about the condition of a property, but the specifics can differ.

It’s crucial to consult with a real estate professional or legal expert familiar with the laws in the specific state where you’re considering buying or selling property to understand the disclosure requirements that apply in that jurisdiction.

List of non-disclosure states:

• Alaska (AK)
• Idaho (ID)
• Kansas (KS)
• Missouri (some counties) (MO)
• Mississippi (MS)
• Louisiana (LA)
• Wyoming (WY)
• Utah (UT)
• Texas (TX)
• North Dakota (ND)
• New Mexico (NM)
• Montana (MT)

PropertyScout.io through a internal algorithm provides an estimated market value, even on Non-Disclosure states. This estimate is created to provide our users with the closest possible number to the sale price