The Ohio Supreme Court recently clarified what sellers must disclose and what buyers must uncover under the state’s residential property disclosure rules in Ashmus v. Coughlin [Slip Opinion No. 2025-Ohio-2412].
In Ashmus, buyers had planned to demolish and rebuild a lakefront home, but later discovered a sewer line running through the property that interfered with their construction plans. They sued, alleging fraud and failure to disclose. The Court ruled in favor of the seller, stating:
The disclosure form is intended to alert buyers to defects that affect ordinary residential use, not potential obstacles to specific redevelopment plans.
A working sewer line that’s visible in public records does not require disclosure, even if it affects the buyer’s intended use.
Key Takeaways for Sellers
Working infrastructure (e.g., sewer lines, utility easements) does not need to be disclosed unless it’s physically defective.
A seller is not responsible for a buyer’s future construction issues if the property is otherwise fit for ordinary residential use.
Key Takeaways for Buyers
The disclosure form is designed to identify defects affecting basic livability, not limitations on future development or specific building plans.
If a sewer line or easement interferes with a buyer’s plans but is otherwise functioning and recorded, the seller isn’t required to notify.
A buyer’s failure to conduct their own investigation could mean losing the right to cancel the contract or bring fraud claims later.
Practical Steps and Responsibilities
Sellers:
Disclose known defects that materially impact how the property functions, but you’re not required to anticipate every buyer’s plans.
Document what you disclose and retain copies of any “as-is” clauses, inspection waivers, or communications regarding buyer responsibilities.
Buyers:
Go beyond the disclosure form—review title reports, utility maps, and recorded easements before closing.
Understand that “as-is” sales limit your ability to bring claims after closing, so complete all due diligence early in the process.
Consult with your real estate attorney before waiving inspections or deadlines that protect your rights.
Selling or buying a home is a big step. If you have questions about disclosure obligations or want peace of mind before signing, our attorneys are ready to help you move forward with clarity and confidence.
