The seller’s disclosure report is one of the most important documents in the homebuying process.

Most—but not all—states require sellers to give prospective buyers a disclosure report. (There are sometimes a few exceptions, such as properties in probate, where the original owner has died.) Here’s why it’s so important that you review and understand seller disclosures–and follow up as necessary when you do your home inspection.

What’s in a Typical Disclosure Report
Most state-required real estate disclosures are made using a standard form, on which the seller checks off features of the property and rates or describes their condition. The typical disclosure form is a few pages long and describes features like:

•appliances
•the roof, foundation, and other structural components
•electrical, water, sewer, heating, and other mechanical systems
•trees and natural hazards (earthquakes, flooding, hurricanes)
•environmental hazards, such as lead, asbestos, mold, radon, or contamination by use as a meth lab, and
•zoning.

Some disclosure forms also cover legal issues, such as ownership problems, legal disputes concerning the property, and community association fees. The forms might even require information about suicides, murders, and other deaths on the property; nearby criminal activity; or factors, such as excessive neighborhood noise or other things that affect a house’s desirability or value.

Generally, sellers are responsible for disclosing only information within their personal knowledge—that is, they don’t necessarily need to hire inspectors to turn up problems.

If you’re buying a new house that  hasn’t yet been built, the developer obviously won’t have much to disclose—but may still need to tell you about things like the type of soil; previous uses of the property; possible future uses of surrounding land; and the developer’s intentions regarding existing trees, streams, and natural areas.