Delaware does something with seller disclosure that most states do not: the condition report is not an attachment you exchange somewhere along the way. Under the Buyer Property Protection Act it has to reach the buyer before the buyer makes an offer, and once signed it becomes part of the purchase agreement itself.
The sequencing rule: disclosure comes before the offer
Under 6 Del. C. § 2572, the Delaware Real Estate Commission publishes a standard Seller’s Disclosure of Real Property Condition Report, and the statute is specific about when it moves:
- The seller makes the disclosure in writing before signing the listing agreement. It is a precondition of going to market, not of going to closing.
- The agent, subagent or seller gives a copy to every prospective buyer, or the buyer’s agent, before the buyer makes an offer to purchase. You are meant to know the property’s condition while you are still deciding what to bid.
- Signed by buyer and seller, the report becomes part of the purchase agreement. That is the part worth pausing on: a misstatement in the report is a misstatement in your contract, not in a side document.
- It must be updated for any material change occurring in the property before final settlement.
Source: 6 Del. C. ch. 25, subch. VII (Delaware Code).
Radon notice
Delaware also requires that every purchaser of an interest in residential real property with a dwelling on it be notified that the property may present the potential for radon exposure. The seller must hand over any radon test or inspection results in their possession and disclose known radon hazards.
What the report is not
The statute is blunt about the limits. The completed disclosure is a good-faith effort by the seller. It is not a warranty by the seller or by any agent, and it is not a substitute for the inspections or warranties a buyer may want to obtain. Reading the report is not the same as inspecting the house.
How this changes the way you write the contract
- Reference the report explicitly. Since it becomes part of the agreement, identify it by date and make clear which version is incorporated.
- Handle updates. Say what happens if an updated report arrives after your offer is accepted but before settlement — a material change is exactly when a buyer wants an exit.
- Keep the inspection contingency anyway. The report is not a warranty, so an independent inspection contingency still does the real protective work.
- Parties, property, price, deposit. Full legal names, legal description, purchase price, deposit amount, who holds it and what releases it.
- Financing. Loan type, approval deadline, and the buyer’s remedy if financing fails.
- Settlement. Date, place, and how transfer taxes and recording costs are split between the parties.
Mistakes that show up in Delaware deals
- Receiving the report after making the offer and treating that as normal. The statute puts it before the offer for a reason.
- Assuming the report replaces an inspection. It explicitly does not.
- Ignoring the update duty. Material changes before settlement have to be disclosed; silence is where liability lives.
Delaware transfer tax: who pays what, and the first-time buyer break
Delaware’s realty transfer tax is a real number in your closing costs, and the rate depends on where the property sits:
- 2.5 % total where the county or municipality also imposes a transfer tax — 1.25 % on the buyer and 1.25 % on the seller.
- 3 % state rate where the property is in an area that does not impose a local transfer tax.
- In practice the tax is typically shared equally between buyer and seller, but who pays what is negotiable and belongs in the contract rather than in an assumption.
First-time buyers get a reduction. A first-time home buyer is entitled to a half-point reduction in the rate paid by the buyer — for most buyers, from 1.25 % down to 0.75 % — claimed at closing. The reduction is capped at $2,000 and applies only to the first $400,000 of property value. It reduces the buyer’s portion only; it does not relieve the seller of the seller’s share.
Source: 30 Del. C. ch. 54 (Realty Transfer Tax) and the Delaware Division of Revenue.
Putting the two Delaware rules together
The condition report and the transfer tax pull in opposite directions on timing, and both belong in the contract:
- Before you offer. You should already hold the Seller’s Disclosure of Real Property Condition Report. If you do not, ask for it before you name a price.
- In the offer. Identify the report by version and date, since signing makes it part of the agreement. State the transfer tax split explicitly, and whether you are claiming the first-time buyer reduction.
- Between offer and settlement. Keep the inspection contingency alive; the report is not a warranty. Watch for an updated report, which the seller owes you on any material change.
- At settlement. The first-time buyer reduction is claimed at closing, so tell the settlement agent well before the day.
Frequently asked questions
When must I receive the seller’s condition report?
Before you make an offer to purchase. The seller also has to have made the written disclosure before signing the listing agreement.
Does the report become part of my contract?
Yes. Once signed by buyer and seller, the written disclosure form becomes part of the purchase agreement.
Is the seller warranting the condition of the house?
No. The statute states the report is a good-faith disclosure, not a warranty, and not a substitute for inspections.
What happens if something changes before settlement?
The disclosure must be updated for any material change occurring in the property before final settlement.
Is radon disclosure separate?
Buyers must be notified of potential radon exposure, and sellers must provide any radon test or inspection information they hold and disclose known hazards.
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This is general information, not legal advice. For a specific transaction, consult a Delaware real estate attorney.
Related templates
Residential purchase agreement (all states) · Seller property disclosure statement · Real estate listing agreement