What must be disclosed to potential buyers in a real estate transaction?

In a real estate transaction, it is essential for sellers to disclose any material defects known to them regarding the property. Material defects are significant issues that could affect the value, safety, or habitability of the property, such as structural problems, water damage, or issues with the electrical system. This requirement helps ensure that buyers are fully informed about the condition of the property they are considering purchasing, allowing them to make educated decisions.

Disclosing such information also serves to protect the seller from potential legal liability that may arise from non-disclosure. When sellers fail to disclose known defects and the buyer later discovers these issues, it can result in disputes or legal claims, which emphasize the importance of honesty and transparency in real estate transactions. Thus, this obligation to disclose material defects is a cornerstone of ethical real estate practice and promotes trust between buyers and sellers.