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                                                      PRINTER'S NO. 2538

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1966 Session of 1997


        INTRODUCED BY GEORGE, VEON, CURRY, LAUGHLIN, MUNDY, WALKO,
           M. COHEN, SURRA, COY, JAROLIN, OLASZ, BELARDI, STURLA, TIGUE,
           BATTISTO, SCRIMENTI, COLAIZZO, STABACK, TRAVAGLIO, STEELMAN,
           HERMAN, PISTELLA, DeLUCA, KIRKLAND, CARONE, WOJNAROSKI,
           TRELLO, YOUNGBLOOD, CLARK, JOSEPHS, LUCYK, BOSCOLA, THOMAS,
           SHANER, GIGLIOTTI AND DeWEESE, OCTOBER 29, 1997

        REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
           OCTOBER 29, 1997

                                     AN ACT

     1  Amending the act of July 2, 1996 (P.L.500, No.84), entitled "An
     2     act providing for a real estate transfer disclosure
     3     statement," further providing for the contents of the
     4     disclosure form.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Section 5 of the act of July 2, 1996 (P.L.500,
     8  No.84), known as the Real Estate Seller Disclosure Act, is
     9  amended to read:
    10  Section 5.  Disclosure form.
    11     The disclosures required by this act pertaining to the
    12  property proposed to be transferred are set forth in and shall
    13  be made on a form that is substantially similar to the following
    14  disclosure form. Nothing in this act shall preclude a seller
    15  from including in this form additional provisions which require
    16  greater specificity or which call for the disclosure of the


     1  condition or existence of other features of the property.
     2               SELLER'S PROPERTY DISCLOSURE STATEMENT
     3         Property address: .......................................
     4         .........................................................
     5         Seller: .................................................
     6             A seller must disclose to a buyer all known material
     7         defects about property being sold that are not readily
     8         observable. This disclosure statement is designed to
     9         assist the seller in complying with disclosure
    10         requirements and to assist the buyer in evaluating the
    11         property being considered.
    12             This statement discloses the seller's knowledge of
    13         the condition of the property as of the date signed by
    14         the seller and is not a substitute for any inspections or
    15         warranties that the buyer may wish to obtain. This
    16         statement is not a warranty of any kind by the seller or
    17         a warranty or representation by any listing real estate
    18         broker, any selling real estate broker or their agents.
    19         The buyer is encouraged to address concerns about the
    20         conditions of the property that may not be included in
    21         this statement. This statement does not relieve the
    22         seller of the obligation to disclose a material defect
    23         that may not be addressed on this form.
    24             A material defect is a problem with the property
    25         or any portion of it that would have a significant
    26         adverse impact on the value of the residential real
    27         property or that involves an unreasonable risk to
    28         people on the land.
    29         (1)  Seller's expertise.  The seller does not possess
    30             expertise in contracting, engineering, architecture
    19970H1966B2538                  - 2 -

     1             or other areas related to the construction and
     2             conditions of the property and its improvements,
     3             except as follows: ..................................
     4         (2)  Occupancy.  Do you, the seller, currently occupy
     5              this property? ..... yes  ..... no
     6              If "no," when did you last occupy the property? ....
     7         (3)  Roof.
     8             (i)  Date roof was installed: ......................
     9                 Documented? ..... yes  ..... no  ..... unknown
    10             (ii)  Has the roof been replaced or repaired during
    11                 your ownership? ..... yes  ..... no
    12                 If "yes," were the existing shingles removed?
    13                 ..... yes  ..... no  ..... unknown
    14             (iii)  Has the roof ever leaked during your
    15                 ownership? ..... yes  ..... no
    16             (iv)  Do you know of any problems with the roof,
    17                 gutters or downspouts? ..... yes  ..... no
    18         Explain any "yes" answers that you give in this section:
    19         .........................................................
    20         .........................................................
    21         (4) Basements and crawl spaces (Complete only if
    22             applicable).
    23             (i)  Does the property have a sump pump?
    24                 ..... yes  ..... no  ..... unknown
    25             (ii)  Are you aware of any water leakage,
    26                 accumulation or dampness within the basement or
    27                 crawl space? ..... yes  ..... no
    28                 If "yes," describe in detail: ...................
    29                 .................................................
    30             (iii)  Do you know of any repairs or other attempts
    19970H1966B2538                  - 3 -

     1                 to control any water or dampness problem in the
     2                 basement or crawl space? ..... yes  ..... no
     3                 If "yes," describe the location, extent, date
     4                 and name of the person who did the repair or
     5                 control effort: .................................
     6                 .................................................
     7         (5)  Termites/wood destroying insects, dry rot, pests.
     8             (i)  Are you aware of any termites/wood destroying
     9                 insects, dry rot or pests affecting the
    10                 property? ..... yes  ..... no
    11             (ii)  Are you aware of any damage to the property
    12                 caused by termites/wood destroying insects, dry
    13                 rot or pests? ..... yes  ..... no
    14             (iii)  Is your property currently under contract by
    15                 a licensed pest control company?
    16                 ..... yes  ..... no
    17             (iv)  Are you aware of any termite/pest control
    18                 reports or treatments for the property in the
    19                 last five years? ..... yes  ..... no
    20         Explain any "yes" answers that you give in this section:
    21         .........................................................
    22         .........................................................
    23         (6)  Structural items.
    24             (i)  Are you aware of any past or present water
    25                 leakage in the house or other structures?
    26                 ..... yes  ..... no
    27             (ii)  Are you aware of any past or present movement,
    28                 shifting, deterioration or other problems with
    29                 walls, foundations or other structural
    30                 components? ..... yes  ..... no
    19970H1966B2538                  - 4 -

     1             (iii)  Are you aware of any past or present problems
     2                 with driveways, walkways, patios or retaining
     3                 walls on the property? ..... yes  ..... no
     4         Explain any "yes" answers that you give in this section.
     5         When explaining efforts to control or repair, please
     6         describe the location and extent of the problem and the
     7         date and person by whom the work was done, if known:
     8         .........................................................
     9         .........................................................
    10         (7) Additions/remodeling.  Have you made any additions,
    11             structural changes or other alterations to the
    12             property? ..... yes  ..... no
    13             If "yes," please describe: ..........................
    14             .....................................................
    15         (8)  Water and sewage.
    16             (i)  What is the source of your drinking water?
    17             ..... public  ..... community system
    18             ..... well on property  ..... other
    19         If "other," please explain: .........................
    20         .....................................................
    21             (ii)  If your drinking water source is not public:
    22                 when was your water last tested? ................
    23                 what was the result of the test? ................
    24                 Is the pumping system in working order?
    25                 ..... yes  ..... no
    26                 If "no," please explain: ........................
    27                 .................................................
    28             (iii)  Do you have a softener, filter or other
    29                 purification system? ..... yes  ..... no
    30                 If "yes," is the system: ..... leased ..... owned
    19970H1966B2538                  - 5 -

     1             (iv)  What is the type of sewage system?
     2                 ..... public sewer  ..... private sewer
     3                 ..... septic tank  ..... cesspool  ..... other
     4                 If "other," please explain: .....................
     5                 .................................................
     6             (v)  Is there a sewage pump? ..... yes  ..... no
     7                 If "yes," is it in working order?
     8                 ..... yes  ..... no
     9             (vi)  When was the septic system or cesspool last
    10                  serviced? ......................................
    11             (vii)  Is either the water or sewage system shared?
    12                 ..... yes  ..... no
    13                 If "yes," please explain: .......................
    14                 .................................................
    15             (viii)  Are you aware of any leaks, backups or other
    16                 problems relating to any of the plumbing, water
    17                 and sewage-related items? ..... yes  ..... no
    18                 If "yes," please explain: .......................
    19                 .................................................
    20         (9)  Plumbing system.
    21             (i)  Type of plumbing: ..... copper  ..... galvanized
    22                 ..... lead  ..... PVC  ..... unknown  ..... other
    23                 If "other," please explain: .....................
    24                 .................................................
    25             (ii)  Are you aware of any problems with any of your
    26                 plumbing fixtures (including, but not limited
    27                 to: kitchen, laundry or bathroom fixtures, wet
    28                 bars, hot water heater, etc.)?
    29                 ..... yes  ..... no
    30                 If "yes," please explain: .......................
    19970H1966B2538                  - 6 -

     1                 .................................................
     2         (10)  Heating and air conditioning.
     3             (i)  Type of air conditioning: ..... central electric
     4                 ..... central gas  ..... wall  ..... none
     5                 Number of window units included in sale: ........
     6                 Location: .......................................
     7                 .................................................
     8             (ii)  List any areas of the house that are not air
     9                 conditioned: ....................................
    10                 .................................................
    11             (iii)  Type of heating:  ..... electric
    12                 ..... fuel oil  ..... natural gas  ..... other
    13                 If "other," please explain: .....................
    14                 .................................................
    15             (iv)  List any areas of the house that are not
    16                 heated: .........................................
    17             (v)  Type of water heating: ..... electric ..... gas
    18                 ..... solar  ..... other
    19                 If "other," please explain: .....................
    20                 .................................................
    21             (vi)  Are you aware of any underground fuel tanks on
    22                 the property? ..... yes  ..... no
    23                 If "yes," please describe: ......................
    24                 .................................................
    25         Are you aware of any problems with any item in this
    26         section? ..... yes  ..... no
    27         If "yes," please explain: ...............................
    28         .........................................................
    29         (11)  Electrical system.  Are you aware of any problems
    30             or repairs needed in the electrical system?
    19970H1966B2538                  - 7 -

     1             ..... yes  ..... no
     2             If "yes," please explain: ...........................
     3             .....................................................
     4         (12)  Other equipment and appliances included in sale
     5             (complete only if applicable).
     6             (i)  ..... Electric garage door opener
     7                 Number of transmitters .....
     8             (ii)  ..... Smoke detectors  How many? .....
     9                 Location: .......................................
    10                 .................................................
    11             (iii)  ..... Security alarm system
    12                 ..... owned  ..... leased
    13                 Lease information: ..............................
    14                 .................................................
    15             (iv)  ..... Lawn sprinkler
    16                 Number .....  Automatic timer .....
    17             (v)  ..... Swimming pool  ..... Pool heater
    18                 ..... Spa/hot tub
    19                 List all pool/spa equipment: ...................
    20                 ................................................
    21              (vi)  ..... Refrigerator  ..... Range
    22                 ..... Microwave oven  ..... Dishwasher
    23                 ..... Trash compactor  ..... Garbage disposal
    24              (vii)  ..... Washer  ..... Dryer
    25              (viii)  ..... Intercom
    26              (ix)  ..... Ceiling fans  ..... Number
    27                 Location: .......................................
    28              (x)  Other: ........................................
    29         Are any items in this section in need of repair or
    30         replacement? ..... yes  ..... no  ..... unknown
    19970H1966B2538                  - 8 -

     1         If "yes," please explain: ...............................
     2         .........................................................
     3         (13)  Land (soils, drainage and boundaries).
     4             (i)  Are you aware of any fill or expansive soil on
     5                 the property? ..... yes  ..... no
     6             (ii)  Are you aware of any sliding, settling, earth
     7                 movement, upheaval, subsidence or earth stability
     8                 problems that have occurred on or that affect the
     9                 property? ..... yes  ..... no
    10         NOTE TO BUYER: Your property may be subject to mine
    11         subsidence damage. Maps of the counties and mines where
    12         mine subsidence damage may occur and mine subsidence
    13         insurance are available through:
    14         Department of Environmental Protection
    15         Mine Subsidence Insurance Fund
    16         3913 Washington Road
    17         McMurray, PA 15317
    18         412-941-7100
    19             (iii)  Are you aware of any existing or proposed
    20                 mining, strip mining or any other excavations
    21                 that might affect this property?
    22                 ..... yes  ..... no
    23             (iv)  To your knowledge, is this property or part of
    24                 it located in a flood zone or wetlands area?
    25                 ..... yes  ..... no
    26             (v)  Do you know of any past or present drainage or
    27                 flooding problems affecting the property?
    28                 ..... yes  ..... no
    29             (vi)  Do you know of any encroachments, boundary
    30                 line disputes or easements? ..... yes  ..... no
    19970H1966B2538                  - 9 -

     1                 NOTE TO BUYER: Most properties have easements
     2                 running across them for utility services and
     3                 other reasons. In many cases, the easements do
     4                 not restrict the ordinary use of the property,
     5                 and the seller may not be readily aware of them.
     6                 Buyers may wish to determine the existence of
     7                 easements and restrictions by examining the
     8                 property and ordering an abstract of title or
     9                 searching the records in the Office of the
    10                 Recorder of Deeds for the county before entering
    11                 into an agreement of sale.
    12             (vii)  Are you aware of any shared or common areas
    13                 (for example, driveways, bridges, docks, walls,
    14                 etc.) or maintenance agreements?
    15                 ..... yes  ..... no
    16         Explain any "yes" answers that you give in this section:
    17         .........................................................
    18         .........................................................
    19         (14)  Hazardous substances.
    20             (i)  Are you aware of any underground tanks or
    21                 hazardous substances present on the property
    22                 (structure or soil), including, but not limited
    23                 to, asbestos, polychlorinated biphenyls (PCBs),
    24                 radon, lead paint, urea-formaldehyde foam
    25                 insulation (UFFI), etc.? ..... yes  ..... no
    26             (ii)  To your knowledge, has the property been tested
    27                 for any hazardous substances? ..... yes  ..... no
    28             (iii)  Do you know of any other environmental
    29                 concerns that might impact upon the property?
    30                 ..... yes  ..... no
    19970H1966B2538                 - 10 -

     1         Explain any "yes" answers that you give in this section:
     2         .........................................................
     3         .........................................................
     4         (15)  Sewage sludge
     5           (i)  Are you aware of any sewage sludge that was
     6                applied to your property within the last 15 years?
     7                ..... yes  ..... no
     8          (ii) If "yes," was the sewage sludge tested for any
     9               of the following pollutants: arsenic, cadmium,
    10                copper, lead, mercury, molybdenum, nickel,
    11               selenium or zinc?
    12                   ..... yes ..... no
    13           (iii) If "yes," please explain the results of the test,
    14                  indicating whether the pollutant was discovered
    15                  and at what concentration:
    16                    ____________________________________________
    17                    ____________________________________________
    18         [(15)] (16)  Condominiums and other homeowners
    19                    associations (complete only if applicable).
    20                    Type: ..... condominium   ..... cooperative
    21                    ..... homeowners association  ..... other
    22                    If "other," please explain: ................
    23                    ............................................
    24             NOTICE REGARDING CONDOMINIUMS AND COOPERATIVES:
    25         According to section 3407 of the Uniform Condominium Act
    26         (68 Pa.C.S. § 3407 (relating to resales of units) and 68
    27         Pa.C.S. § 4409 (relating to resales of cooperative
    28         interests), a buyer of a resale unit in a condominium or
    29         cooperative must receive a certificate of resale issued
    30         by the association in the condominium or cooperative. The
    19970H1966B2538                 - 11 -

     1         buyer will have the option of canceling the agreement
     2         with return of all deposit moneys until the certificate
     3         has been provided to the buyer and for five days
     4         thereafter or until conveyance, whichever occurs first.
     5         [(16)] (17)  Miscellaneous.
     6             (i)  Are you aware of any existing or threatened
     7                 legal action affecting the property?
     8                 ..... yes  ..... no
     9             (ii)  Do you know of any violations of Federal, State
    10                 or local laws or regulations relating to this
    11                 property? ..... yes  ..... no
    12             (iii)  Are you aware of any public improvement,
    13                 condominium or homeowner association assessments
    14                 against the property that remain unpaid or of any
    15                 violations of zoning, housing, building, safety
    16                 or fire ordinances that remain uncorrected?
    17                 ..... yes  ..... no
    18             (iv)  Are you aware of any judgment, encumbrance,
    19                 lien (for example, comaker or equity loan) or
    20                 other debt against this property that cannot be
    21                 satisfied by the proceeds of this sale?
    22                 ..... yes  ..... no
    23             (v)  Are you aware of any reason, including a defect
    24                 in title, that would prevent you from giving a
    25                 warranty deed or conveying title to the property?
    26                 ..... yes  ..... no
    27             (vi)  Are you aware of any material defects to the
    28                 property, dwelling or fixtures which are not
    29                 disclosed elsewhere on this form?
    30                 ..... yes  ..... no
    19970H1966B2538                 - 12 -

     1         A material defect is a problem with the property
     2         or any portion of it that would have a significant
     3         adverse impact on the value of the residential
     4         real property or that involves an unreasonable risk
     5         to people on the land.
     6             Explain any "yes" answers that you give in
     7         this section:
     8         .........................................................
     9         .........................................................
    10             The undersigned seller represents that the
    11         information set forth in this disclosure statement is
    12         accurate and complete to the best of the seller's
    13         knowledge. The seller hereby authorizes any agent for the
    14         seller to provide this information to prospective buyers
    15         of the property and to other real estate agents. The
    16         seller alone is responsible for the accuracy of the
    17         information contained in this statement. The seller shall
    18         cause the buyer to be notified in writing of any
    19         information supplied on this form which is rendered
    20         inaccurate by a change in the condition of the property
    21         following the completion of this form.
    22         SELLER .............................. DATE ..............
    23         SELLER .............................. DATE ..............
    24         SELLER .............................. DATE ..............
    25         .........................................................
    26                 EXECUTOR, ADMINISTRATOR, TRUSTEE
    27             The undersigned has never occupied the property and
    28         lacks the personal knowledge necessary to complete this
    29         disclosure statement.
    30         .........................................................
    19970H1966B2538                 - 13 -

     1         .........................................................
     2         ..................................... DATE ..............
     3         .........................................................
     4         .........................................................
     5                    RECEIPT AND ACKNOWLEDGMENT BY BUYER
     6             The undersigned buyer acknowledges receipt of this
     7         disclosure statement. The buyer acknowledges that this
     8         statement is not a warranty and that, unless stated
     9         otherwise in the sales contract, the buyer is purchasing
    10         this property in its present condition. It is the buyer's
    11         responsibility to satisfy himself or herself as to the
    12         condition of the property. The buyer may request that
    13         the property be inspected, at the buyer's expense and by
    14         qualified professionals, to determine the condition of
    15         the structure or its components.
    16         BUYER ............................... DATE ..............
    17         BUYER ............................... DATE ..............
    18         BUYER ............................... DATE ..............
    19     Section 2.  This act shall take effect in 60 days.








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