Selling a Delaware house that needs repairs
A sagging roof, a dead furnace, a basement that takes on water, a septic field that has given up. Delaware lets you sell a house in any condition, but it does not let you stay quiet about what you know. This page covers the state’s seller disclosure law, the radon and lead paint rules, and how to decide whether to repair first or sell as it stands.
The step that matters: the condition report, before any offerDelaware makes the seller of a house with up to four units hand the buyer a written Seller’s Disclosure of Real Property Condition Report before the buyer makes an offer, and that report becomes part of the agreement of sale (6 Del. C. § 2573). It applies to as-is sales too. Fill it out honestly from the start and it protects you later.
How Delaware treats a house in rough shape
There is no rule that a Delaware house has to be in good repair to be sold. Buyers can and do purchase houses with failing systems, water damage or no working kitchen. The law cares about something narrower: that the buyer knows what the seller knows.
That duty comes from the Buyer Property Protection Act, chapter 25 of Title 6. Delaware sellers of houses with up to four units must put in writing every material defect known when the house is offered for sale or discovered before settlement. The disclosure goes on a standard form written by the Delaware Real Estate Commission, it reaches the buyer before an offer, and it becomes part of the contract. If something new breaks or comes to light before settlement, the report gets updated.
The law also limits a seller’s exposure in return. A buyer has no claim for defects the seller disclosed before the offer, for defects that appeared after the offer but were disclosed before settlement (if the seller kept to the agreement), or for anything that happens after settlement. The form is a good-faith statement, not a warranty, and it does not take the place of the buyer’s own inspection.
Put simply, an honest report is the strongest protection a seller has. The risk lies in what you leave off. A furnace you know is cracked, a basement that floods every spring, a roof leak you patched last winter: write them down.
The disclosure path in a Delaware sale
The order of these steps is set by statute. How long each takes depends on the buyer and the house.
- Before you list
Complete the report
If an agent will list it, the written disclosure comes before you sign the listing agreement (§ 2572(b)).
- Before any offer
Buyer receives the report
The condition report goes to every prospective buyer or their agent (§ 2573).
- With the report
Radon and lead notices
Radon information and any test results (§ 2572A); the federal lead-based paint package for most pre-1978 homes.
- After the offer
Buyer’s inspections
Your report is not a substitute for the buyer’s own inspections (§ 2574).
- Until settlement
Update for changes
New material defects or changes get added in writing before final settlement.
- Settlement
Defects after this are not yours
No claim against the seller for defects that occur after final settlement (§ 2575(3)).
Radon, lead paint and septic: the Delaware specifics
Radon
Delaware puts radon in the statute itself. Every buyer of a home must be told the property may present a risk of radon exposure, and the seller must hand over any radon test or inspection results in their possession and disclose any known hazard. The state form records the seller’s disclosure and the buyer’s acknowledgment, including the option to test. The Division of Public Health offers Delaware residents a free radon test kit.
Lead-based paint
For most homes built before 1978, federal rules add their own package: the EPA pamphlet on lead hazards, disclosure of any lead-based paint you know about, copies of any reports, and a Lead Warning Statement in the contract, all before the buyer signs. Peeling or chipping paint in an older house is exactly what this rule is about.
Septic systems deserve a word for any house that is not on public sewer. DNREC licenses the inspectors who evaluate on-site systems, and their reports, known as Class H inspections, can be searched by owner, address or parcel number on the DNREC website. If a failing drainfield is your problem, pulling the last report gives any buyer, us included, a real starting point instead of a guess.
One more line on the form surprises people: Delaware’s disclosure must say who pays to repair and repave the street in front of the house, the owners, the state, or unknown. On a private road in a subdivision, that answer can matter as much as the roof.
Repair first, or sell as it is?
| Route | What happens | Fits when | Watch out for |
|---|---|---|---|
| Repair, then list | You fix the major items and sell on the open market at a retail price. | You have the cash, the contractors and several months. | Costs run over, permits take time, while the mortgage, taxes and insurance keep coming due. |
| Fix only the small things | Paint, patch, clean, and repair minor safety items before listing. | The big systems work and the house just looks tired. | Buyers’ inspectors will still find the larger issues you left alone. |
| List it as-is with an agent | An agent markets the house in its current condition, often to investors and handy buyers. | The problems are moderate and buyers can still get a loan. | Lenders and appraisers can balk at a missing kitchen, a bad roof or a failed septic, and deals fall through. |
| Offer a repair credit | You price the house for its condition or credit the buyer at settlement. | A financed buyer is willing and the lender allows the credit. | The house still has to pass the lender’s appraisal and conditions. |
| Sell to a cash buyer like us | We buy it in its current condition with our own funds; no repairs, cleaning or showings. | The work is major, you lack the time or money for it, or the house is empty. | Our price reflects the repairs and our risk, so you will net less than a fixed-up house sells for. |
An overview, not advice for your house. Ask a listing agent for a repaired-value estimate, and a contractor can price the work; put those numbers next to our offer.
When the repairs are cosmetic and you have a few months, fixing up and listing usually leaves more money in your pocket; if that describes your house, we will say so plainly. Selling to us makes sense when the work is structural or expensive, when a lender would struggle to approve the house as it is, or when managing contractors for half a year is not how you want to spend it.
What to gather
- Any past inspection or repair reports. Home inspections, roof or furnace estimates, contractor invoices.
- Radon and lead results. Delaware requires you to share radon results you have; the federal rule covers lead reports for pre-1978 homes.
- The last septic inspection. Look it up by parcel on DNREC’s site if you do not have a copy.
- Open permits or code notices. Anything a county or town code office has written up.
- Insurance claims. Past water, fire or storm claims, paid or denied.
How we buy a house that needs work
- We walk the house once, basement and attic included, and note what needs to be done.
- You get a written cash number, usually within 24 hours, with the repair estimate behind it shown.
- You complete Delaware’s disclosure honestly; we do not ask you to fix anything on it.
- A Delaware attorney conducts settlement on the date you choose, and you can leave what you do not want.
If a town has already cited the house, read code violations. If the damage came from water or wind, see flood and storm damage, and if the house sits empty, vacant houses. County detail: Kent, Sussex, New Castle.
Know the numbers before you decideAsk a contractor to price the big items in writing, and ask a local agent what the house might bring once repaired. Delaware residents can also order a free radon test kit through the Division of Public Health. For an as-is number from us, call (856) 226-4289.
Related situations
- Code violationsWhen a county or town has already written up the repairs.
- Flood or storm damageWater in the basement, wind on the roof, and insurance that did not cover it all.
- Inherited a houseA parent’s house that has not been updated in decades.
- Tired landlordA rental where the repair list keeps growing.
Repairs, disclosure and as-is sales in Delaware
Can I sell a house as-is in Delaware?
Yes. Nothing in Delaware law requires you to repair a house before selling it, and an as-is contract simply means the buyer accepts its condition. What “as-is” does not do is cancel your duty to disclose the material defects you know about.
What does a Delaware seller have to disclose?
Every material defect you know about, in writing. The Buyer Property Protection Act, 6 Del. C. § 2572, covers homes with one to four units, and the Seller’s Disclosure of Real Property Condition Report must reach the buyer before they make an offer and becomes part of the agreement of sale.
Do I have to disclose a problem I just found out about?
Yes. The duty reaches defects you knew of when listing and any you learn of before final settlement, and the report has to be updated for material changes. A defect that shows up after the offer but is disclosed before settlement does not give the buyer a claim, provided you have kept to the agreement of sale.
Do I still fill out the disclosure if I sell to a cash buyer?
In most cases, yes. The Delaware statute does not exempt sales to investors or as-is sales; its exemptions are for situations like sheriff sales, estate administrators, divorce settlements and transfers within a family. We will not ask you to fix anything on it, but you should still complete it honestly.
Is the disclosure form a warranty?
No. Under 6 Del. C. § 2574, the completed form is a good-faith effort to disclose what you know, not a warranty by the seller or any agent, and it does not replace inspections the buyer may want.
What does Delaware require about radon when selling a house?
The buyer must be told the property may have radon, and the seller must hand over any radon test results in their possession and disclose any known radon hazard, under 6 Del. C. § 2572A. The state’s disclosure form includes the results of any radon tests, and the Division of Public Health offers Delaware residents a free test kit.
Is a lead paint disclosure needed for an older Delaware house?
Usually, if it was built before 1978. Federal law requires the seller to give the buyer the EPA’s lead pamphlet, disclose known lead-based paint or hazards, share any reports, and include a Lead Warning Statement before the buyer signs.
Should I fix the house before selling?
Only when a repair raises the price by more than it costs, and you can fund and finish it. Cosmetic work and small safety fixes can pay for themselves; a new roof, a septic replacement or a foundation repair often does not, especially when you add the months it takes.
Do you buy Delaware houses whose septic system has failed?
We do. We buy houses with septic problems, water or fire damage, mold, and full basements, and our offer reflects the repair. Past septic inspection reports can be looked up by parcel on DNREC’s website, which helps everyone price the work.
Can a buyer sue me after settlement for a defect?
Not for defects you disclosed before the offer, and not for defects that occur after final settlement, under 6 Del. C. § 2575. The risk comes from known defects left off the report, which is why full disclosure protects you even in an as-is sale.
Who pays for street repairs in front of the house?
The disclosure form asks. By statute it must say whether repaving the adjacent street is paid for by the property owners, by the Delaware Department of Transportation or the State, or is unknown, because private-road repaving can be expensive for an owner.