What is the purpose of disclosure statements in real estate?

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The primary purpose of disclosure statements in real estate is to inform potential buyers of material facts about the property. These statements are fundamental to ensuring transparency in a real estate transaction. By providing detailed information about the condition of the property, any known defects, environmental issues, or other significant factors that could affect the buyer's decision, the disclosure statement serves to protect the interests of the buyer.

This practice enhances trust between the buyer and seller and plays a critical role in allowing buyers to make informed decisions. By understanding potential issues upfront, buyers can avoid future disputes related to undisclosed problems. Disclosure statements are a crucial part of the due diligence process in a real estate transaction, ensuring that buyers are fully aware of what they are purchasing.

The other options do not align with the primary function of disclosure statements, as they do not primarily focus on informing buyers about material facts regarding the property itself.

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