What is the purpose of property disclosure statements?

The purpose of property disclosure statements is to inform buyers of known issues or defects with the property. This is a critical component of the real estate transaction process because it promotes transparency and helps buyers make informed decisions. By disclosing any known problems, sellers fulfill legal obligations and build trust with potential buyers. This also helps to minimize the risk of future legal disputes concerning undisclosed defects after the sale has been completed.

In contrast, securing the seller's title focuses on ownership issues rather than issues related to the property itself. Providing financing options is not the role of a property disclosure statement; that aspect is usually handled by lenders or financial institutions. Establishing a legal contract of sale relates to the agreement between buyer and seller but is separate from the objective of informing about the condition of the property. Thus, the primary function of a property disclosure statement is to highlight any known problems, ensuring buyers are fully aware of what they are purchasing.