What is the purpose of a Property Disclosure Statement?

The purpose of a Property Disclosure Statement is to inform buyers of known issues or defects with the property. This document plays a critical role in the real estate transaction process by ensuring transparency between sellers and buyers. It allows sellers to disclose any material facts or conditions that could affect the value or desirability of the property—such as structural issues, pest infestations, environmental hazards, and the condition of major systems like plumbing and electrical.

By providing this information upfront, the Property Disclosure Statement helps buyers make informed decisions about the property they are considering. Not only does it promote honesty and accountability among sellers, but it also protects them from potential legal issues that could arise from nondisclosure of property defects. Additionally, it contributes to a smoother transaction process, as buyers who are aware of any existing problems can better assess their options, negotiate repairs, or adjust their offers accordingly.