A look at our most recent 200 real estate disclosure claims reveals which property issues lead to the most disputes, the longest timelines, and the highest costs.
When a real estate transaction closes, most sellers breathe a sigh of relief and move on. But for some, the closing is just the beginning of a costly legal ordeal. Disclosure-related claims — filed when a buyer believes material facts about a property were concealed or misrepresented — can surface months or even years after the sale.
We analyzed our most recent 200 real estate disclosure claims across 16 property issue categories. The findings are a wake-up call for sellers, agents, and brokers alike. Some of the most common claims are relatively affordable to resolve. Others can stretch on for nearly a year and cost hundreds of thousands of dollars.
Total claims analyzed
200+
Across 16 categories
Highest avg demand
$356K
General home condition
Longest avg timeline
290 days
Windows claims
Plumbing tops the list with the highest number of claims — nearly a quarter of all cases reviewed. Leaks, Mold/Water Damage, Roofing, and HVAC round out the top five. Together, these five categories account for more than two-thirds of all claims, and every one of them relates to systems or conditions that are either invisible to buyers at the time of showing or that worsen over time.
Water-related issues — plumbing, leaks, mold/water damage, and flooding — make up more than half of all claims reviewed. Water damage is cumulative, often hidden behind walls or under floors, and buyers rarely forget it.
Source: Sellers Shield claims data · 192 total claims
Not all claims are created equal. While plumbing leads in volume, it carries a relatively modest average demand of $38,069 — likely because many plumbing issues are discrete, repairable problems. But step into General Home Condition territory, and that figure balloons to $356,222 on average.
General Home Condition claims are particularly dangerous because they’re broad. A buyer who feels misled about the overall state of a home can cast a wide net — pulling in deferred maintenance, cosmetic concealment, undisclosed prior damage, and more. The vagueness of the category often translates to higher stakes in litigation.
Foundation, HVAC, and Mold/Water Damage all carry average demands above $230,000 — and each one involves systems that can be difficult for a buyer to independently verify during a standard inspection. These are exactly the categories where thorough disclosure documentation makes the biggest difference.
Beyond the financial impact, disclosure claims carry a significant time burden. The average time from sale to claim across all categories is over 200 days — but some categories stretch much longer. Windows claims take the longest to surface — nearly 10 months on average — even though the dollar amounts are relatively low. This likely reflects situations where buyers notice issues gradually over time, perhaps through seasonal changes, energy bills, or eventual water intrusion. Foundation and Roofing claims, by contrast, combine long timelines with high demand amounts: a brutal combination.
| Category | Avg Days to Claim | Avg Amount Demanded | Risk Level |
|---|---|---|---|
| Windows | 290 days | $10,768 | Medium |
| Pool | 268 days | $69,869 | Medium |
| Flooding | 258 days | $179,831 | High |
| Hazardous substances | 258 days | $34,511 | Medium |
| Foundation | 250 days | $301,030 | High |
| Roofing | 246 days | $237,244 | High |
| HVAC | 243 days | $265,403 | High |
| Legal issues / permits | 242 days | $201,591 | High |
| General home condition | 177 days | $356,222 | High |
| Mold / water damage | 175 days | $239,898 | High |
| Leaks | 174 days | $163,416 | High |
| Infestation | 140 days | $18,628 | Lower |
| Owned / leased equipment | 124 days | $8,900 | Lower |
| Plumbing | 127 days | $38,069 | Lower |
| Flooring | 115 days | — | Lower |
| Repairs | 227 days | $74,475 | Medium |
For real estate professionals, these numbers reinforce something that experienced agents already know: disclosure conversations are not a formality. They are risk management. Every category in this dataset represents a situation where a buyer felt surprised after closing — surprised enough to file a formal claim.
Water-related issues deserve deep attention. Agents should encourage sellers to proactively disclose any known history of water intrusion, past repairs, or recurring issues, even if they believe the problem is resolved.
Structural and system claims carry the highest financial risk. Foundation, HVAC, Roofing, and General Home Condition are where claims get expensive fast. If your seller hasn’t had these systems recently inspected, it’s worth recommending a pre-listing inspection.
Legal and permit issues are underestimated. With claims averaging $201,591 and a 242-day timeline, unpermitted additions, easement disputes, and zoning restrictions are serious exposure. Remind sellers to think back to any improvements made and whether proper permits were pulled.
If you’re preparing to sell your home, the most important thing you can do is tell the full story of the property — not the version you hope buyers will accept, but the accurate one. Disclosure isn’t just a legal obligation; it’s the foundation of a clean transaction and a protected sale.
Buyers who feel deceived — even unintentionally — file claims. The categories in this data aren’t exotic or unusual. They’re the ordinary features of almost every home: plumbing, roofing, HVAC, windows, foundations. The sellers behind these claims likely didn’t think they were hiding anything. But without clear documentation of known issues and how they were addressed, “I didn’t think it was a big deal” becomes very difficult to defend.
