A Seller’s Disclosure is a document that requires sellers to provide previously undisclosed details about the property’s condition that prospective buyers may find useful and often unfavorable. The Disclosure is important for both the buyer and seller. For buyer, the Disclosure provides a clearer picture of the home and its history and allows them to make a more educated decision on whether to purchase the home. For sellers, the Disclosure can and will protect them from future litigation given the information is comprehensive and accurate. In New Jersey, home sellers are not required to fill out this disclosure form – though it is often recommended to ensure that sellers meet the state’s disclosure obligations, which are required.
In April, the New Jersey Department of Health released an updated form for the Seller Property Condition Disclosure Statement, commonly used in real estate transactions. The update to the form “requires that when a seller discloses on the property condition disclosure statement awareness of water leakage, accumulation or dampness, the presence of mold or other similar natural substance, or repairs or other attempts to control any water dampness problem on the property, the real estate broker, broker-salesperson, or salesperson shall refer the buyer of the real property to the “Mold Guidelines for New Jersey Residents” pamphlet issued by the New Jersey Department of Health, www.njrealtor.com/mold-guidelinespamphlet (https://www.njrealtor.com/mold-guidelines-pamphlet), and, if requested, give the buyer a physical copy of the document.”
The New Jersey REALTORS® Seller Property Condition Disclosure, Form #140 has been updated with a new question 126 to reflect the law.