The Fine Print: Part 1: Seller's Real Property Disclosure Statement (SRPDS)

Navigating a real estate transaction involves so much more than having your clients sign on the dotted line. This series breaks down some of the essential real estate forms and disclosures—from addenda and amendments to specific property forms—so all parties can feel confident in understanding some of the documents that shape their deal.

Part 1: Seller’s Real Property Disclosure Statement (SRPDS)

Before we start, I strongly recommend that you are providing the Seller with (or that your Buyer is receiving) the most current copy of the SRPDS. Updated versions often include questions that reflect new legislation—for example, the addition of the Sea Level Rise Disclosure. New HAR forms are typically released every May and November, and at the time of writing this, the most current copy is dated “For Release 11/25”. You can also obtain a fillable PDF of the SRPDS through the HAR website’s Member Section. Regardless of where you source the form (HAR or ZipForm), be sure to complete the first box at the top of page 1 when providing it to the Seller, as those items are part of the disclosure.

It is also important to note that this is a legal requirement pursuant to Hawaii Revised Statutes Chapter 508D. This means that for any residential sale, the Seller is obligated to fully and accurately disclose in writing to Buyer any fact, defect, or condition, past or present, that would be expected to measurably affect the value of the Property to a reasonable person (a “material fact”). As the Seller’s Agent, you should also ensure that any material facts you are aware of are properly disclosed to help mitigate potential liability.

Next, while the form can be daunting to complete, there are instructions provided in the bottom box on page 1. I think these are simple and straightforward and should be highlighted when asking the Seller to fill out the SRPDS.

1.       Answer ALL questions in sections A and B.

2.       If sections C, D, E, OR F apply to the subject property, even in part, that section shall be marked with an “X” as APPLICABLE and the entire section must be filled out in its entirety. If sections C, D, E or F do not apply to the subject property, then that section should be marked with “NA” as NOT APPLICABLE.

3.       If any items are checked or answered “YES”, explain all material facts known to you in Section G.

4.       If additional space is needed to explain material facts, complete and attach additional pages as necessary.

5.       All structures must be covered in the Disclosure Statement. Each separate structure shall be addressed by separate Disclosure Statement.

6.       “NTMK” means NOT TO MY KNOWLEDGE.

7.       “NA” means NOT APPLICABLE and cannot be answered by “YES”, “NO”, or “NTMK”.

When representing the Seller, be sure to carefully review the completed SRPDS before it is provided to the Buyer. Take the time to ensure it is filled out properly and that all questions have been answered to the best of the Seller’s knowledge. If you are aware of an issue—such as a prior leak—and it has not been disclosed, the form should be returned to the Seller for correction. This disclosure is not only intended to protect the Seller, but it also helps protect you as the Agent.

When representing the Buyer, you should confirm that the SRPDS received from the listing side is complete and appears to have been answered honestly. There may be situations where you are aware of property issues that are not reflected in the disclosure. Your goal is to ensure your Buyer has the most thorough and accurate information possible. A detailed SRPDS allows Buyers to make informed decisions—especially considering that, for many, this may be one of the most significant financial decisions of their lives.

Fun fact: When Buyers initial the SRPDS, nowhere in the form does it explicitly state that their initials constitute approval of the contents. However, in practice, it is commonly treated as an acknowledgment and acceptance of the disclosure as provided. This makes it even more important that the form is complete, clear, and accurate before it reaches the Buyer.

I will say that throughout the course of my career, I have seen some amazing disclosures completed, down to when they changed their light bulbs (slight exaggeration) and I have seen some truly sad ones, where the Seller has lived there for 20 years but has marked everything “NTMK”. It is in everyone’s best interest that the SRPDS be completed fully and accurately. If your Seller needs help, it may be beneficial to spend an hour with them to assist them with the completion. An hour today is better than days, weeks, months or even years spent in litigation. As I was taught early on, “DISCLOSE! DISCLOSE! DISCLOSE!”.