What is the purpose of a real estate disclosure statement?

The purpose of a real estate disclosure statement is primarily to inform buyers about known issues or defects concerning the property. This statement is a crucial document in real estate transactions as it aims to provide transparency regarding the condition of the property being sold. Sellers are often required by law to disclose material facts that could affect a buyer's decision, such as structural problems, pest infestations, or environmental hazards.

This disclosure helps protect buyers by ensuring they are aware of any potential problems before completing the purchase, thereby assisting them in making informed decisions. It can also safeguard sellers against potential legal issues arising from failure to disclose significant defects. In this context, being upfront about property issues creates a more trustworthy transaction and can lead to smoother negotiations between the parties involved.

Other options, while related to real estate transactions, do not fit the specific role of a disclosure statement. For instance, estimated closing costs are typically provided in closing documents, assessing market value relates more to appraisals, and outlining financing options does not pertain to disclosure requirements but rather to the mortgage process.