In the sellers disclosure you should disclose whatever you know about the home as honestly as possible. You can call me directly if you have any additional questions.
Take a look at this section of a typical Seller's Property Condition Disclosure Statement, which specifically refers to drainage regarding the property that is for sale. I was unable to copy and paste, so I typed it up for you.
LAND: SOIL, DRAINAGE AND BOUNDARIES
"67. Are you aware of any fill or expansive soil on the property?
68. Are you aware of any past or present mining operations in the area in which the property is located?
69. IS THE PROPERTY LOCATED IN A FLOOD HAZARD ZONE?
70. Are you aware of any drainage or flood problems AFFECTING THE PROPERTY?
71. Are there any areas on the property which are designated as protected wetlands?
72. Are you aware of any encroachments, utility easements, boundary line disputes, OR DRAINAGE or other easements AFFECTING THE PROPERTY?
73. Are there any water retention basins on the property or the adjacent properties?
74. Are you aware if any part of the property is being claimed by the State of New Jersey as land PRESENTLY OR FORMERLY COVERED BY TIDAL WATER (Riparian claim or lease grant)?Explain:
75. Are you aware of any shared or common areas (for examples, driveways, bridges, docks, walls, bulkheads, etc.) or maintenance agreements regarding the property?
76. Explain any "yes" answers to the preceding question in the section.
77. Do you have a survey of the property?
Question 69, 70, 72, and 74 all pertain. #70 specifically asks whether you are aware of any drainage or flood problems affecting the property. However, the question specifically states "affecting the PROPERTY," and not "affecting the neighborhood." So, this becomes subject to sound judgment and ethics on your part, and interpretation of the questions when you are answering them. You indicated the water doesn't reach your property; so, technically, how you answer this question will be directly subject to your interpretation of the question.
Each and every question must be answered honestly, and to the best of your ability. A Seller's Property Disclosure form specifically pertains to a home and the land it sits on. I definitely concur that this is a drainage issue that should be taken up with the township until it is fixed.
By asking the assistance of a Realtor, if you decide you want to sell, you will be given a Seller`s Disclosure Statement which you will independently and honestly fill out. Conversely, when you are buying a new home, you will also ask to SEE the Sellers` Disclosure.