What is a "real estate disclosure"?

A real estate disclosure is fundamentally a legal requirement for sellers to provide information about the condition of the property to potential buyers. This practice is essential in real estate transactions as it promotes transparency and helps buyers make informed decisions. By disclosing details about the property's condition, any known issues, or potential hazards, sellers fulfill their legal obligation and help minimize the risk of disputes after the sale. The disclosure process protects both parties by ensuring that buyers are aware of any factors that could affect their decision to purchase a property.

Other options, while related to real estate, do not accurately define what a real estate disclosure entails. For example, the certification of a property’s compliance with local laws relates more closely to inspections or permits than to disclosures. A summary of the terms of sale refers to the specifics of the transaction rather than the condition of the property itself. Lastly, a buyer's offer represents the buyer’s proposal to purchase the property and is unrelated to the disclosure of property condition.