The seller's disclosure notice statute contains 11 narrow exemptions. You're not likely to come across these situations frequently. The most common of these exemptions apply to: 1. A builder of a new home 2. A trustee or executor of an estate 3. The lender after foreclosing on a property. Even though these types of sellers (and a few others) are not required to provide a disclosure notice, they still must disclose any known material defects. For example, if an inspection report reveals material defects, the seller and broker are obliged to disclose those defects. Therefore, a lender who knows about a cracked foundation in a property that the lender acquired through foreclosure must disclose the defect to any buyer who purchases the property from the lender. The means of disclosure is not mandated.