Why Seller Disclosures Matter
Utah law requires sellers to disclose known material defects that could affect a property’s value or desirability. Agents have a parallel duty to make sure disclosures are complete and accurate. Courts and the Division of Real Estate don’t give much grace when disclosures are incomplete.
See also: Breach of Fiduciary Duty by Utah Real Estate Agents: What You Need to Know.
What Sellers Must Disclose in Utah
- Physical Defects: Leaks, foundation cracks, mold, electrical or plumbing issues.
- Environmental Hazards: Radon, asbestos, lead-based paint (see our post on Lead-Based Paint Disclosures: What Utah Landlords Must Do to Stay Compliant).
- Title & Legal Issues: Boundary disputes, easements, or HOA violations.
- Prior Repairs or Damage: Even if fixed, sellers should disclose past flooding, fire, or structural repairs.
Failing to disclose—even unintentionally—can lead to a rescinded sale, damages, or disciplinary action.
What Agents Must Do
- Review Disclosure Forms Carefully: Don’t let clients skip questions or write “unknown” without good reason.
- Disclose Known Defects: Agents cannot hide behind a seller’s silence. If an agent knows about a defect, they must disclose it, regardless of the seller’s statement.
- Avoid Over-Promising: Never downplay a disclosed issue as “no big deal.” That can create liability if the problem worsens.
- Document Everything: Keep written records of what was disclosed and when.
For a related caution, see: When Property Management Becomes a Legal Liability in Utah.
Common Disclosure Mistakes That Lead to Lawsuits
- Not Updating Disclosures: Sellers must update disclosure statements if new defects arise before closing.
- Failing to Disclose Repairs: If a problem was fixed, disclose both the issue and the repair.
- “As-Is” Misconception: Selling a property “as-is” does not relieve sellers from disclosure duties.
- Agent Assumptions: Agents cannot assume “new construction” means defect-free.
How Buyers Enforce Disclosure Duties
- Inspection Contingency: Buyers can cancel or renegotiate if inspections uncover undisclosed defects.
- Contract Claims: Buyers may sue for breach of contract if disclosures were incomplete.
- Fraud Claims: Deliberate concealment can lead to fraud lawsuits, punitive damages, and attorney’s fees.
- REC Complaints: Buyers can file complaints with the Utah Division of Real Estate if they believe an agent facilitated nondisclosure.
The Bottom Line
Utah sellers and agents cannot afford to cut corners on disclosures. Complete, accurate, and timely disclosures protect everyone involved in the transaction. Getting this wrong can cost far more than a commission—it can cost you your license or your business.
Call to Action
If you are facing a disclosure dispute or want to make sure your practices are airtight, contact Duckworth Legal Group today. We’ll help you stay compliant and out of court.