What does "seller's disclosure" refer to in real estate transactions?

"Seller's disclosure" is a crucial component in real estate transactions, specifically referring to a document that outlines the condition of the property and any known issues. This document is designed to inform potential buyers about any defects or problems that may exist, such as plumbing issues, electrical problems, previous flooding, or the presence of hazardous materials like lead paint or asbestos.

The purpose of a seller's disclosure is to promote transparency in the transaction, allowing buyers to make informed decisions before purchasing the property. By listing these details, sellers can protect themselves legally against future claims from buyers who might discover hidden issues after the sale is completed. It also helps buyers to assess the property more accurately and negotiate terms or prices based on the condition of the home.

The other options do not accurately define "seller's disclosure." A legal contract for transferring property ownership pertains to the purchase agreement itself, an agreement between the seller and the agent relates to the brokerage relationship, and a feature of the property that enhances its value does not capture the essence of providing a condition report as described in a seller's disclosure. Thus, the primary role of a seller's disclosure is effectively conveyed in the option that highlights the property's condition and known issues.