Some FSBO sellers don't realize that they are required to give prospective buyers one or more disclosure statements that describe elements of the property. Disclosure laws vary in each state, so you must be familiar with your local regulations in order to comply. Don't neglect this important step in the sales process, because it could come back to haunt you in the form of a lawsuit after the sale if you neglect to disclose faulty components.

Federal laws require that you provide buyers with lead paint information about any residence built prior to 1978. Hefty fines can be levied for noncompliance. Refer to Chapter 9 for more information about lead paint disclosures.

Call your state real-estate commission to find out which disclosures you are required to give buyers when they make an offer on the property. Staff at your local board of Realtors can give you the phone number for your state's real-estate commission.

There might be instances in which you can avoid filling out disclosures about the condition of the property. Some states do not require disclosure from sellers who have never lived in the residence. Ask your real-estate commission about exceptions that apply in your area.

Special disclosures are required for many areas, such as flood zones and regions at risk to frequent earthquakes. The real-estate commission can tell you which disclosures you are required to provide potential buyers. You can learn more about property disclosures in Chapter 8.