New Residential Property Disclosure Form effective June 1, 2022
By Stephen McCoy, Ohio REALTORS Assistant Vice President of Legal Services
The Ohio Division of Real Estate has approved an updated version of the Ohio Real Property Disclosure Form (RPDF) which became effective June 1, 2022. CLICK HERE to access the new form.
It is important to note that while the new RPDF went into effect on June 1, the new RPDF will not become mandatory until Jan. 1, 2023. REALTORS should familiarize themselves with the new form prior to it becoming mandatory at the start of 2023.
There are two primary changes with the updated form. The first change is found on the signature page among the list of acknowledgments for purchasers. There is a new provision suggesting purchasers exercise due diligence with respect to the potential presence of hazardous materials. This is important for REALTORS to note when discussing with your purchaser-clients whether the presence of any hazardous materials would affect their decision to purchase the property. If so, purchasers are encouraged to review Appendix A which marks the second primary change to the existing RPDF. Appendix A contains a list of federal and state resources for purchasers to learn more about hazardous materials which can be found in housing. The list is not exhaustive, and purchasers are encouraged to seek advice from a qualified/licensed professional.
There is always the chance that REALTORS will have listings that were signed in 2022 and used the prior 2013 version before the new form was mandatory. To avoid any potential civil liability for yourself and your seller-clients, it is strongly recommended that REALTORS have their seller-clients complete the new 2022 form on any purchase contract that is entered into after Jan. 1, 2023. This will assure that the buyer is receiving information on the topics covered in the new version of the form (i.e., important information regarding the potential presence of hazardous materials).
It is also recommended that REALTORS listing property in 2022 discuss with their seller-clients that a new form will be required after Jan. 1, 2023. This conversation will allow the sellers to decide whether they want to complete the new 2022 version so that they can avoid filling out two forms. As always, any questions a seller has about the completion of the form or whether to use the new form before it is mandatory should be referred to the seller’s own legal counsel.
The following are some frequently asked questions pertaining to the new disclosure form:
Q: If I list a home in 2022, what version of the RPDF should the sellers complete?
A: You should discuss with the sellers that a new RPDF becomes mandatory on Jan. 1, 2023. The sellers will have to decide whether they want to complete the 2022 RPDF even though that is not mandatory on properties listed in 2022. Certainly, any questions the sellers have regarding the completion of the form or whether to use the 2022 RPDF early should be referred to the seller’s own legal counsel.
Q: I listed a home in September at which time the sellers completed the 2013 RPDF. If the property is still on the market after Jan. 1, 2023, must the sellers complete the new 2022 RPDF?
A: The Ohio Division of Real Estate and Professional Licensing has indicated that it will not charge a licensee with a license law violation for failing to have the sellers complete the new RPDF in this situation. However, to avoid any potential civil liability for you and the sellers, it is strongly recommended that the sellers complete and provide the 2022 RPDF to buyers on any purchase contract that is entered into after Jan. 1, 2023. This will ensure that the buyer is receiving information on the topics that are covered in the new version of the form.
Q: I have a listing which went into contract in late 2022. The sellers provided the buyers with the 2013 RPDF. The transaction will not close until Jan. 15, 2023. Do the sellers have to provide the buyers with a completed 2022 RPDF because the transaction is going to close in 2023?
A: No. The residential property disclosure law requires the seller to provide the RPDF to a purchaser before entering into a contract. As the contract was entered into in 2022, before the new form was mandatory, the seller met this obligation by providing the prior version to the buyers. The residential property disclosure law does not require the seller to update the form after the contract even though the form is later changed.
