Real estate transactions are complex and involve many legal considerations. In Utah, sellers of real property must make certain disclosures to potential buyers regarding the condition and history of the property. These disclosures are designed to protect buyers from hidden defects or problems with the property, and to ensure that buyers have all the information they need to make an informed decision about purchasing the property.

Utah law requires sellers to provide a Property Condition Disclosure (PCD) to potential buyers before a sale is completed. This disclosure form requires the seller to answer a series of questions about the condition of the property, including information about the roof, electrical systems, plumbing, and more. The PCD is not a warranty or a guarantee, but rather a statement of the seller’s knowledge of the condition of the property.

In addition to the PCD, Utah law also requires sellers to disclose certain known defects or problems with the property that may not be apparent upon inspection. These disclosures are required even if the seller did not create the problem, but became aware of it during their ownership of the property. Examples of such defects or problems include structural damage, water damage, pest infestations, and other issues that could affect the value or safety of the property.

Utah law also requires sellers to disclose any environmental hazards on or near the property, such as lead-based paint, radon gas, or other hazardous materials. Sellers must also provide a lead-based paint disclosure if the property was built before 1978. The Utah Supreme Court has ruled that property sellers must disclose known material defects that could not have been discovered by a reasonable inspection by an ordinary prudent buyer. See Mitchell v. Christensen, 2001 UT 80, 31 P.3d 572. Material has been defined as something that could adversely affect the use or value of the home.

If a seller fails to make required disclosures, they may be liable for damages or rescission of the sale. Therefore, it is important for sellers to provide accurate and complete disclosures to potential buyers.

It is important to note that the PCD and other disclosures are not a substitute for a professional home inspection. Buyers should always hire a qualified home inspector to thoroughly inspect the property before purchasing. The PCD and other disclosures provide a starting point for buyers to understand the condition of the property, but a home inspection can uncover additional issues that may not have been disclosed.

In conclusion, Utah law requires sellers to make certain disclosures to potential buyers about the condition and history of the property. These disclosures are designed to protect buyers from hidden defects or problems with the property, and to ensure that buyers have all the information they need to make an informed decision about purchasing the property. Sellers who fail to make required disclosures may be liable for damages or rescission of the sale, so it is important to provide accurate and complete disclosures. Buyers should always hire a qualified home inspector to thoroughly inspect the property before purchasing, in addition to reviewing the PCD and other disclosures. If you are a buyer and believe that the seller committed fraudulent non-disclosure, Hepworth Legal stands ready to review your case and determine if further action is necessary.