What is the purpose of a property disclosure statement?

The purpose of a property disclosure statement is to inform potential buyers of known issues or defects in a property. This document is essential because it promotes transparency in real estate transactions and helps safeguard both the buyer and seller. By disclosing any known problems or deficiencies, the seller allows the buyer to make an informed decision regarding their purchase. This can include information about structural issues, pest infestations, past flooding, or other significant concerns that might affect the property's value or safety.

In many jurisdictions, including Virginia, sellers are legally required to provide this disclosure to potential buyers, thereby covering themselves from future legal disputes related to undisclosed defects. Transparency in these disclosures is critical because it builds trust in the transaction and helps buyers avoid unpleasant surprises after the sale. This requirement maintains ethical standards in real estate practices and fosters a more secure and informed buying process.