What is the purpose of a property disclosure statement?

The purpose of a property disclosure statement primarily focuses on informing potential buyers of known issues with the property. This statement is essential in the real estate transaction process, as it helps ensure transparency between the seller and the buyer. By disclosing various aspects such as structural problems, plumbing or electrical issues, past flooding incidents, or any other known defects, the seller provides potential buyers with a clearer understanding of what they are purchasing. This transparency can foster trust and reduce the likelihood of disputes after the sale has been finalized, as buyers are made aware of the property's condition prior to their purchase decision.

While property taxes, neighborhood amenities, and property value estimations are important considerations in a real estate transaction, they do not encapsulate the primary role of a property disclosure statement. It is specifically designed to highlight known issues related to the property itself, making it a vital tool for informed decision-making by potential buyers.