North Carolina Post Licensing 301 Practice Exam 2026 – Complete Prep Resource

A seller’s disclosure statement is a crucial document in real estate transactions that provides potential buyers with transparency regarding the property’s condition. The primary purpose of this statement is to inform the buyer of any known defects and issues that may affect the property's value or desirability. This includes but is not limited to past water damage, electrical issues, pest infestations, or foundational problems.

Knowing about these issues beforehand helps buyers make informed decisions and can prevent future disputes between buyers and sellers. It ensures that the buyer is fully aware of what they are purchasing, allowing them to assess the risk associated with the property. A comprehensive disclosure statement ultimately promotes ethical practices and trust in real estate transactions.

In contrast, while estimated market values or comparative market analyses are valuable tools in assessing property worth, they are not typically part of a seller's disclosure statement. Similarly, future renovation plans, though they may influence a buyer's decision, do not fall under the known defects and issues that a seller must disclose. Therefore, the inclusion of known defects and issues is essential and aligns with the legal responsibilities of sellers in many jurisdictions.