How to Read a Property Disclosure Like a Pro: Red Flags Buyers Often Miss

Smart Buyer Tips from Hanson Capital Homes

Introduction: The Most Overlooked Document in the Deal

You’re in love with the house. The porch is perfect, the kitchen has subway tile, and there’s even a bonus room for your Peloton you swore you’d start using. Then your agent hands you something less exciting:

"Here’s the seller’s property disclosure."

Most buyers skim it. Big mistake.

Because buried in that disclosure could be everything from flood damage to foundation issues, HVAC problems, or mold that’s been “remediated” but mysteriously smells like a wet sock.

At Hanson Capital Homes, we believe knowledge is buying power—and this post will help you decode property disclosures like a pro, especially when buying in Chattanooga Valley, TN or North Georgia.

🧠 What is a Property Disclosure?

A seller’s property disclosure is a legally required form that outlines known defects, repairs, or conditions affecting the home. Think of it like a “confession booth” where the seller discloses what they know—past and present.

⚖️ Tennessee and Georgia laws differ slightly, but both states require sellers to answer honestly to the best of their knowledge.

💡 Note: Just because it’s disclosed doesn’t mean it’s fixed—and just because it’s blank doesn’t mean it’s perfect.

Featured Snippet: Top Red Flags in Property Disclosures

• Prior water intrusion or flooding
  
  

• Foundation repairs or settlement
  
  

• Mold remediation (especially without receipts)
  
  

• HVAC over 15 years old or "not working"
  
  

• Roof repairs without permits
  
  

• Termite treatments or structural damage
  
  

• “Unknown” answers to key questions
  
  

• As-is sale language
  
  

• Additions or work done without permits
  
  

• Electrical/plumbing labeled “original” in older homes
  
  

1. Water Intrusion or Drainage Problems

🌧️ “Water in crawlspace” or “past flooding” may sound harmless, but it could mean foundation or grading issues.

🎯 Hanson Tip: Check if this correlates with the FEMA flood zone map—Chattanooga Valley and Lookout Valley have sections marked as flood-prone. Always pair disclosure review with flood map research.

2. Foundation or Structural Issues

Words like “settling,” “cracks,” “foundation repair,” or “piers installed” should sound alarms.

🧱 Even if repairs were made, ask for engineering reports, lifetime warranties, or receipts.

🛠️ Red Bank and older parts of Fort Oglethorpe often have homes built on soil that shifts—stay alert.

3. Mold or "Water Damage Remediated"

⚠️ Mold that was “treated” or “remediated” needs documentation. Ask for licensed mold company reports, not just bleach-and-pray fixes.

Nasal sprays are not part of due diligence.

4. “Don’t Know” or “Unknown” in Key Areas

If a seller checks “unknown” on vital systems like roof age, HVAC, or plumbing, you’ve got two options:

• Request clarification
  
  

• Plan for additional inspection scope
  
  

🚩 Too many “unknowns” = too many what-ifs.

5. HVAC, Roof & Water Heater Age

📅 These big-ticket systems have a lifespan:

• HVAC: 12–15 years
  
  

• Water Heater: 8–12 years
  
  

• Roof: 20–30 years depending on material
  
  

🤓 A 17-year-old HVAC labeled “working great” might still pass inspection—but could cost $7K next year. Budget accordingly.

6. Past Termite Activity or Damage

🐜 “Previously treated” is fine if there’s a clear letter from a licensed pest company. “Damage present but untreated”? Not fine.

🧾 Also ask for a termite bond—especially in wood-heavy areas like Chickamauga and Ringgold.

7. Unpermitted Work or Additions

🚧 Did they add a sunroom? Finish the basement? Build a deck?

If the work wasn’t permitted or inspected, your appraiser or lender may flag it, and local authorities could require corrections or fines.

8. “As-Is” Language Hidden in the Fine Print

If the disclosure or listing mentions “as-is,” it doesn’t mean the seller won’t disclose, but it usually means they won’t make repairs.

You can still ask for them—but don’t count on concessions.

9. Electrical or Plumbing Described as “Original”

🛑 A home built in 1960 with original electrical likely means aluminum wiring, which can be a fire hazard and an insurance headache.

📋 Flag this for deeper inspection—even if it “seems fine.”

Local Fact: Did You Know?

In Hamilton County, TN, disclosures are still required even when selling “as-is.” However, some exemptions exist (estate sales, foreclosures, etc.), so always double-check.

Myth vs. Reality: “If It’s Disclosed, It’s No Big Deal”

False.
Disclosure means the seller knows about it—it doesn’t mean it’s been resolved. Big difference.

Always verify with:

✅ Licensed inspectors
✅ Receipts or warranties
✅ Insurance claim history (ask your insurer to run a CLUE report)

Humor Break: What the Disclosure Really Means

“Minor roof leak in 2023.”
Translation: The roof cried itself to sleep for 6 months.

“DIY wiring in garage.”
Translation: Bring a fire extinguisher and pray.

Conclusion: The Disclosure is Your Treasure Map (If You Know How to Read It)

A property disclosure isn’t just a form—it’s a window into the home’s true history. And while sellers are required to be honest, it’s up to you (and your agent) to connect the dots and ask the right questions.

At Hanson Capital Homes, we read these disclosures like Sherlock Holmes with a clipboard. We help you catch what others miss—so you can buy smart, not sorry.

🎯 Want expert eyes on your next property disclosure? Click here!