What does a property disclosure statement provide?

A property disclosure statement is primarily designed to inform potential buyers of known issues or defects related to the property. This document serves as a crucial tool in the real estate transaction process because it enhances transparency, allowing buyers to make informed decisions. The statement typically includes information about structural problems, water damage, pest issues, environmental hazards, and any other material facts that could affect the property's value or the buyer's decision to purchase.

Providing this information not only protects the interests of the buyer by revealing potential problems upfront, but it also helps sellers fulfill their legal obligations regarding disclosure, potentially avoiding legal disputes down the line. This transparency can build trust between the buyer and seller.

In contrast, while neighborhood information might influence a buyer’s decision, it is not typically part of a property disclosure statement. The appraisal value of a property is determined by a licensed appraiser and is not included in the disclosure statement. Lastly, offers from potential buyers pertain to negotiations and are not relevant to the disclosure of a property's condition.