In real estate, what does disclosure mean?

In real estate, disclosure refers to the obligation of sellers and real estate professionals to provide all material facts related to a property. This means that any information that could influence a buyer's decision regarding the purchase of the property must be fully disclosed. This includes aspects such as structural issues, pest infestations, zoning problems, or any legal matters pertaining to the property. The goal of disclosure is to ensure transparency and protect all parties involved in the transaction.

By requiring disclosure of material facts, the real estate industry aims to create a fair and informed marketplace where buyers can make decisions based on complete information. This not only helps in building trust between buyers and sellers but also minimizes the risk of legal disputes arising from undisclosed issues after a sale is completed. Proper disclosure practices are essential for maintaining ethical standards in real estate transactions.