Delaware Seller’s Disclosure Law

Real Property – Seller’s Disclosures – Delaware

Delaware
Title 6, Ch 25, Subtitle VII – Buyer Property Protection Act – Sections 2571-2578.

§ 2571. Definitions.

As used in this subchapter, unless the context otherwise requires:

(1) “Residential Real Property” means any estate or interest in a manufactured housing lot or real property, improved by dwelling units for 1-4 families.
(2) “Seller” means any individual, partnership, corporation or trustee transferring residential real property.
(3) “Buyer” means any individual, partnership, corporation or trustee purchasing any estate or interest in real property.
(4) “Agent” means any individual, partnership, corporation or trustee defined as a broker in § 2901 of this title, acting on behalf of a seller or buyer of residential real property.
(5) “Subagent” means any individual, partnership, corporation or trustee defined as a broker or sales person in § 2901 of this title acting on behalf of an agent.
(6) “Final settlement” means the time at which the parties have signed and delivered all papers and consideration to convey title to the estate or interest in residential real property being conveyed.

(69 Del. Laws, c. 86, § 2.)

§ 2572. Disclosure of material defects.

(a) Except as excluded by § 2577 hereof, a seller transferring residential real property shall disclose, in writing, to the buyer, agent and subagent, as applicable, all material defects of that property that are known at the time the property is offered for sale or that are known prior to the time of final settlement.

(b) This disclosure shall be made in writing before the seller signs the listing agreement and shall be updated as necessary for any material changes occurring in the property before final settlement.

(69 Del. Laws, c. 86, § 2.)

§ 2573. Property condition report.

The agent, subagent or seller, as applicable, shall give a copy of the Seller’s Disclosure of Real Property Condition Report to all prospective buyers or prospective buyer’s agent prior to the time the buyer makes an offer to purchase. This written disclosure form, signed by buyer and seller, shall become a part of the purchase agreement.

(69 Del. Laws, c. 86, § 2.)

§ 2574. Other inspections or warranties.

The seller’s completed disclosure form is a good faith effort by the seller to make the disclosures required by this subchapter, and is not a warranty of any kind by the seller or any agents or subagents representing seller or buyer in the transfer and is not a substitute for any inspections or warranties that the seller or buyer may wish to obtain.

(69 Del. Laws, c. 86, § 2.)

§ 2575. Cause of action.

The buyer shall not have a cause of action against the seller, agent and/or subagent for:

(a) Material defects in condition of the residential real property disclosed to the buyer prior to the buyer making an offer to purchase;
(b) Material defects developed after the offer was made but disclosed prior to final settlement, provided seller has complied with the agreement of sale; or
(c) Material defects which occur after final settlement.

(69 Del. Laws, c. 86, § 2.)

§ 2576. Applicability.

This subchapter shall apply to transfers by sale, exchange, installment land sale contract, lease with an option to purchase or ground lease of a manufactured housing lot, or residential real property, improved with dwelling units for 1-4 families.

(69 Del. Laws, c. 86, § 2.)

§ 2577. Exemptions.

This subchapter shall not apply to the following transfers of residential real property:

(1) Transfers governed by the Delaware Out-of-State Land Sales and Promotions Act where the property disclosure report required by that law is provided to a prospective purchaser.
(2) Transfers pursuant to court order such as transfers ordered by the Court of Chancery in the administration of an estate, trust or guardianship or pursuant to a Writ of Execution, by a trustee in bankruptcy or a receiver, by eminent domain, and transfers resulting from a decree for specific performance.
(3) Transfers to a mortgagee by a mortgagor in default by a deed in lieu of foreclosure.
(4) Transfers by any sheriff’s sale for default on an obligation secured by a mortgage, judgment, tax or other lien.
(5) Transfers by a fiduciary in the course of the administration of the decedent’s estate, guardianship or trust.
(6) Transfers from one co-owner to one or more other co-owners.
(7) Transfers made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(8) Transfers between spouses resulting from a property settlement incident to a divorce.
(9) Transfers to or from any government entity.

(69 Del. Laws, c. 86, § 2.)

§ 2578. Property condition report form.

The Delaware Real Estate Commission shall develop a standard form or forms to be used as the Seller’s Disclosure of Real Property Condition Report, for the disclosure of the condition of residential real property. This form or forms for different circumstances shall be promulgated and amended from time to time by the Real Estate Commission, including such additional relevant content as the Commission deems appropriate.

Each form shall also include the following:

“The cost of repairing and repaving the streets adjacent to the property is paid for by (check one):________ The property owner(s), estimated fees: $________ .

________ Delaware Department of Transportation or the State.

________ Unknown.

Note to Buyer: Repairing and repaving of the streets can be very costly.”

(69 Del. Laws, c. 86, § 2; 72 Del. Laws, c. 426, § 1.)


Inside Delaware Seller’s Disclosure Law