What are "property disclosures"?

Property disclosures are statements made by a seller concerning the condition of a property. These disclosures are critical in real estate transactions because they provide potential buyers with important information about various aspects of the property, including any known defects, necessary repairs, and the overall condition. This transparency helps buyers make informed decisions and reduces the risk of disputes after the sale closes.

When sellers disclose such information, they fulfill their legal obligation to inform potential buyers of material facts regarding the property, which can include issues like structural problems, pest infestations, or any past water damage. This practice not only builds trust between the seller and prospective buyers but also aligns with ethical standards in real estate transactions.

This emphasis on transparency distinguishes property disclosures from other aspects of real estate. For instance, requirements for obtaining a property loan focus more on financial matters rather than the property's physical state, while details about property taxes and fees pertain to financial obligations rather than the property's condition. Likewise, documents outlining repair histories provide specific insights into past repairs but do not serve the broader purpose of revealing the seller's knowledge about the property's overall state, which is the core function of property disclosures.