05/05/2026
ALL PA REALTORS, CLOSING COMPANIES, AND REAL ESTATE ATTORNEYS -------BEWARE!!!
MOST ARE DOING IT ERRANTLY, SO HERE IS THE CORRECTIVE SUMMARY:
PA Real Estate Law — Seller Disclosure: Timing, "Known to Seller" Standard, and the "As-Is" Trap
The Rule:
Pennsylvania's Real Estate Seller Disclosure Law (RESDL), 68 Pa. C.S. §§ 7301–7315, requires any seller intending to transfer residential real property to disclose all material defects known to the seller by completing the State Real Estate Commission's property disclosure statement — and that signed, dated statement must be delivered to the buyer before the agreement of transfer is signed. The disclosure must be made on the Commission's prescribed form covering 17 mandatory categories, including structural problems, roof condition, hazardous substances, water/sewage, electrical, sinkholes and drainage, and legal issues affecting title or use. If the seller fails to deliver the disclosure before ex*****on of the agreement, the buyer retains the right to terminate the agreement at any time before settlement. 68 Pa. C.S. §§ 7303, 7305, 7311.
Practical Note:
The timing trigger is the signing of the agreement — not settlement. A seller who hands over the disclosure at the closing table has technically violated the statute, and the buyer can walk away even if settlement is imminent. Make delivery and acknowledgment of receipt a condition precedent to finalizing any agreement of sale. Under § 7308, the seller is not obligated to investigate — the duty runs only to defects actually known to the seller. That said, § 7313 expressly preserves all other disclosure obligations — common law fraud, negligent misrepresentation, and UTPCPL claims all survive alongside the RESDL.
Watch Out For:
The "as-is" clause misconception. Sellers — and sometimes their counsel — believe "as-is" language in an agreement of sale eliminates RESDL disclosure obligations. It does not. The RESDL is a statutory duty; it cannot be waived by contract. A seller who hides a known leaking basement, septic failure, or structural defect behind an "as-is" clause remains fully exposed under § 7314 (actual damages), UTPCPL (treble damages + attorney's fees), and common law fraud. Second trap: "known to seller" does not mean deliberate ignorance. Prior repairs, contractor invoices, and insurance claims are evidence of constructive knowledge courts regularly consider.
Strategies (on for both sides of the table):
If a Buyer wants out of a deal but has no obvious way to do it, compare the dates of the Agreement of Sale versus the Disclosure. If the Agreement of Sale is the earlier dated document, the Seller is in violation of the statute and Buyer is under no obligation to close.
E. E. Cummings, Esq.
www.clfdlaw.com
