What is the main purpose of disclosure in real estate transactions?

The main purpose of disclosure in real estate transactions is to inform buyers about defects or issues with the property. This ensures that buyers are fully aware of any potential problems that could affect their decision to purchase, the property's value, or their experience as homeowners. Disclosure helps to promote transparency and trust between parties in the transaction.

When sellers disclose material facts about the property, they are fulfilling their legal and ethical obligations, which can also help to mitigate the risk of future disputes or legal claims related to undisclosed issues. This process allows buyers to make informed decisions, as they have all pertinent information regarding the property's condition before finalizing the purchase.

In addition to informing buyers, proper disclosures protect sellers from liability, as they demonstrate that the seller has been honest about the property's condition. This practice is fundamental to maintaining integrity in real estate transactions and fostering a fair marketplace.