Property Condition Disclosure Law: Why Did States Mandate 'Seller Tell All'?

U. of Connecticut Economics Working Paper No. 2006-16

Posted: 17 Aug 2006

See all articles by Anupam Nanda

Anupam Nanda

University of Reading - School of Real Estate & Planning, Henley Business School

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Date Written: June 2006

Abstract

Thirty-six US states have already enacted some form of seller's Property Condition Disclosure Law. At a time when there is a movement in this direction nationally, this paper attempts to ascertain the factors that lead states to adopt disclosure law. Motivation for the study stems from the fact that not all states have yet adopted the law, and states that have enacted the law have done so in different years. The analytical structure employs hazard models, using a unique set of economic and institutional attributes for a panel of 50 US States spanning 21 years, from 1984 to 2004. The proportional hazard analysis of law adoption reveals that greater number of disciplinary actions tends to favor passage of the law. Greater broker supervision, implying generally higher awareness among real estate agents, seems to have a negative impact on the likelihood of a state adopting a Property Condition Disclosure Law.

Keywords: Property Condition Disclosure, Law Adoption, Hazard Analysis, Housing Price Index

JEL Classification: C41, D82, K11, L51, L85, R52

Suggested Citation

Nanda, Anupam, Property Condition Disclosure Law: Why Did States Mandate 'Seller Tell All'? (June 2006). U. of Connecticut Economics Working Paper No. 2006-16, Available at SSRN: https://ssrn.com/abstract=924203

Anupam Nanda (Contact Author)

University of Reading - School of Real Estate & Planning, Henley Business School ( email )

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom

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