What is the purpose of real estate disclosure?

The purpose of real estate disclosure is primarily to inform buyers about known defects or issues in a property. This process is crucial because it ensures that prospective buyers have all necessary information to make an informed decision about the property they are considering. Transparency in disclosing any known problems helps to build trust between buyers and sellers and safeguards against future disputes or legal issues.

Other options such as verifying the real estate appraisal process, providing a tax assessment, or offering a warranty for property maintenance do not relate directly to the concept of disclosure. Each of these alternatives serves different functions in real estate transactions but does not fulfill the primary role of informing buyers about existing issues with the property itself. By failing to provide necessary disclosures, sellers would risk legal liabilities and could potentially mislead buyers about the true condition of the property, which makes accurate and thorough disclosure practices essential in real estate transactions.