What is the purpose of a real estate disclosure statement?

The primary purpose of a real estate disclosure statement is to inform buyers about the condition and potential issues related to the property they are considering purchasing. This statement typically includes details about the property's structural integrity, presence of pests, environmental hazards, and any past repairs or renovations. By providing this crucial information, sellers help buyers make informed decisions, ensuring transparency in the transaction. This practice not only protects buyers but also fosters trust between buyers and sellers, creating a smoother real estate process.

Other choices such as increasing property market price, providing tax information, or reducing seller liability do not capture the essence of the disclosure statement’s primary function. Those aspects may have their own relevance in real estate transactions, but they do not align with the fundamental goal of ensuring that buyers are fully aware of what they are purchasing.