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What Is a Failure To Disclose Dispute?
In Pennsylvania, sellers are legally required to disclose any known material defects in the Seller’s Disclosure Statement as part of the real estate contract. This requirement is set out in the Pennsylvania Real Estate Seller Disclosure Law (RESDL, 68 Pa. C.S. §§ 7301, et seq.) and it covers a wide range of conditions including water infiltration, structural problems, roof defects, mold, and issues with plumbing or sewage systems.
A failure to disclose dispute arises when a buyer discovers defects after closing that they were not made aware of before the sale. The seller is required to disclose any defect that they have actual knowledge of, they are not required to inspect to find defects to disclose.
In Western Pennsylvania, water-related defects are the most common.. Basement flooding, drainage failures, leaking roofs, and sump pump issues are common and are usually related to Western Pennsylvania’s climate and terrain. Most buyers and sellers sign the PAR Standard Agreement for the Sale of Real Estate, which includes a mandatory mediation clause under Paragraph 27. A failure to disclose case falls under Paragraph 27. So, before either party can pursue litigation, mediation must come first. Real Estate Mediation Service has handled hundreds of these disputes and understands this area of the law.
In Western Pennsylvania, water-related defects are the most common.. Basement flooding, drainage failures, leaking roofs, and sump pump issues are common and are usually related to Western Pennsylvania’s climate and terrain. Most buyers and sellers sign the PAR Standard Agreement for the Sale of Real Estate, which includes a mandatory mediation clause under Paragraph 27. A failure to disclose case falls under Paragraph 27. So, before either party can pursue litigation, mediation must come first. Real Estate Mediation Service has handled hundreds of these disputes and understands this area of the law.
Common material defects that require disclosure
Failure to Disclosure Example: Structure and roof
Foundation cracks, basement water, roof leaks, and past structural damage or repairs
Failure to Disclosure Example: Systems
Problems with plumbing, electrical panels, heating, and air conditioning
Failure to Disclosure Example: Water and sewage
Well contamination, septic system failures, drainage issues, and sump pump failure
Failure to Disclosure Example: Environmental hazards
Lead-based paint, asbestos, radon, or toxic mold
Failure to Disclosure Example: Pests
Termite, carpenter ants, rodents or other wood-destroying insects or pests
Failure to Disclosure Example: Legal and Title
Boundary disputes, zoning violations, or unpermitted additions
REMS on Failure to Disclose
Why Information Sharing Matters in Mediation
"Failure to disclose cases can be costly and more complicated. The more information that the parties can provide about the issues and the costs involved, the more likely we can reach a resolution. Gathering and exchanging information about the defects and costs involved can make for a better mediation process. "
Alicia R. Nocera, Esq., | Mediator, Arbitrator and Early Neutral Evaluator
Real Failure to Disclose Disputes We See
What Our Clients Bring to Us
These are illustrative of the disputes we see. Because mediation is confidential, we cannot share attributed testimonials.
Water in the basement
We found water in the basement a week after closing. The engineer said it had been flooding for years. Nobody told us.
Roof
The roof defects or damage were not disclosed. We only found out the age and/or defects until we bought the house and immediately noticed issues.
Mold
We found mold behind the walls. The basement had clearly been wet for a long time before we bought the house.
Sump pump failure
The sump pump was installed illegally and the inspector never caught it. Now we're looking at $20,000+ to fix it.
Sellers come to us too
A buyer is making a failure to disclose claim against me. I filled out the disclosure honestly. I need to understand my options.
How Real Estate Mediation Service Helps with Failure to Disclose Disputes
Whether you are a buyer facing a costly repair bill or a seller responding to a claim, litigation is not your only option. In most cases under the PAR agreement, it is not even your first option.
Real Estate Mediation Service is Western Pennsylvania's only dedicated real estate mediation practice. Here is what working with us looks like.
Your costs are capped.
Fees range from $200 to $500 per party, regardless of how long the mediation takes. There is no billable hour, no ticking clock, and no bill that keeps growing. If the mediation does not go ahead, your fees are refunded.
It can be resolved in a single day.
Most pre-litigation real estate mediations are completed within a few hours.
You stay in control.
A mediator does not issue orders, assign fault, or decide who wins. Both parties keep full control of the outcome. Nothing is binding unless you agree to it.
You can bring support.
You are welcome to bring your attorney, your agent, or a family member. What matters is that the parties to the contract are present.
It is confidential.
Everything discussed in mediation stays in mediation. Unlike a court proceeding, nothing becomes part of the public record.
We know real estate.
Real Estate Mediation Service mediators have handled thousands of real estate cases, including over 100 in 2025 alone. This is all we do.
REMS on Failure to Disclose
Why Early Mediation Can Make a Difference
“Failure to Disclose cases are often complex and involve an emotional component. Mediation is often the best first choice to achieve satisfaction without a prolonged emotional investment at the heart of the dispute.”
Minna Allison, Esq. - Real Estate Mediation Service, LLC
Common Questions About Failure To Disclose Disputes in Pennsylvania
Whether You Are Making a Claim, or Responding to One, We Can Help.
Real Estate Mediation Service is Western Pennsylvania's only dedicated real estate mediation practice. We have handled hundreds of failure to disclose disputes and we know what is at stake for both sides of the table.
Start your mediation request today and hear from us promptly.