What does "real estate disclosure" entail?

"Real estate disclosure" refers primarily to the requirement for property owners to inform potential buyers or renters about known issues or defects with the property. This transparency is crucial as it helps buyers or tenants make informed decisions based on the condition of the property.

Laws surrounding real estate disclosures vary by state, but generally, they are designed to protect consumers from hidden issues that could lead to financial loss or safety risks. For instance, if a property has a history of flooding, structural problems, or pest infestations, the owner or the agent is typically obligated to disclose these facts. This process promotes trust and integrity in real estate transactions and ensures that all parties are aware of vital information before completing a sale or lease agreement.

Other choices like providing financial statements, listing tenants, or conducting inspections do not directly relate to the core purpose of real estate disclosures, which centers around informing about property defects and issues.