Real estate disclosure requirements for PFAS water contamination are evolving rapidly as the regulatory and legal landscape around PFAS matures. Buyers, sellers, and agents navigating home transactions in PFAS-affected areas need current information about disclosure obligations and best practices.
Current Disclosure Requirements
No uniform federal standard currently requires PFAS disclosure in real estate transactions, though EPA’s 2024 MCL compliance requirements are driving increased utility transparency that may inform disclosure practices. State-level requirements vary significantly: some states with general material defect disclosure requirements arguably encompass known PFAS contamination, while others are developing PFAS-specific disclosure regulations. California, New Jersey, and several other states with strong environmental disclosure frameworks are developing or have implemented PFAS-related disclosure guidance.
Voluntary Disclosure as Best Practice
Real estate attorneys and risk management advisors increasingly recommend voluntary PFAS disclosure by sellers with actual knowledge of contamination, both as an ethical obligation and as protection against post-sale disclosure lawsuits. Courts have found sellers liable for non-disclosure of known material defects including water contamination in several notable cases. Documenting water test results, filtration system specifications, and contamination history in the seller’s disclosure package provides transparency and legal protection.
Buyer Due Diligence
In the absence of mandatory disclosure requirements, buyers in PFAS-affected regions should conduct independent PFAS testing of the property’s water supply as part of due diligence — alongside the standard home inspection process. Including a contingency allowing withdrawal or price renegotiation based on water quality test results protects buyers from discovering contamination after closing. Water quality testing costs are modest relative to the cost of a home purchase and the health implications of unaddressed contamination.