Licensee shall disclose to prospective buyers/tenants all material adverse facts pertaining to the physical condition of the property which is known by the licensee. “Physical condition of the property” does not include (i) matters outside the boundaries of the land or relating to adjacent or other properties in proximity thereto, (ii) matters relating to governmental land use regulations, or (iii) matters relating to highways or public streets. Such disclosure shall be made in writing.

Pursuant to § 54.1-2131, licensees engaged by sellers, buyers, landlords, tenants, or as property managers must protect the interest of their client by disclosing “material facts related to the property or concerning the transaction of which the licensee has actual knowledge”. (§§ 54.1-2131 – 2135).

In addition to state law disclosure obligations, REALTORS® are also subject to the REALTOR® Code of Ethics. Article 2 of the Code of Ethics states that “REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction.” This disclosure obligation is broader than that under state law described above. Simply put, a pertinent fact is one that could be a determining factor in a reasonable buyer’s decision to purchase a property. REALTORS® are only obligated to discover adverse factors reasonably apparent to someone with expertise in those areas required by their real estate license. Even if a fact is not “pertinent”, Article 1 of the Code of Ethics prohibits intentional misrepresentations by REALTORS®, if directly asked.