What is the purpose of a real estate disclosure statement?

The purpose of a real estate disclosure statement is to provide potential buyers with important information regarding the property's condition and any known issues. This document serves to inform buyers about aspects of the property that may affect its value or desirability. It typically includes details about structural issues, past repairs, environmental hazards, and any relevant disclosures mandated by law.

By delivering this information upfront, the disclosure statement helps to promote transparency in the transaction, enabling buyers to make informed decisions. Understanding the property's condition can also facilitate smoother negotiations and reduce the likelihood of disputes after the sale. Buyers are better equipped to evaluate the risks associated with the purchase, which is beneficial for both parties involved in the transaction.