What does "disclosure" in real estate transactions refer to?

In real estate transactions, "disclosure" refers specifically to the legal obligation that sellers have to inform potential buyers about known issues with the property. This can include a variety of factors such as structural problems, pest infestations, environmental hazards, or any other circumstances that may affect the value or safety of the property. The purpose of this requirement is to ensure transparency and protect buyers from unexpected liabilities after the purchase.

This practice is crucial in maintaining trust in real estate transactions and upholding fair dealings between parties. Sellers who fail to disclose significant issues can face legal repercussions, including potential lawsuits from buyers. Therefore, understanding the importance of disclosure helps buyers make informed decisions and empowers them to avoid future problems related to undisclosed property conditions.