What is a seller required to disclose in the property disclosure statement?

A seller is required to disclose all known material defects in the property disclosure statement because this practice is fundamental in real estate transactions to ensure transparency and protect both parties involved. A material defect refers to any issue that significantly affects the value, desirability, or intended use of the property. By disclosing these defects, the seller provides potential buyers with essential information that could influence their decision to purchase. This requirement is rooted in the ethical obligation to avoid misleading buyers about the property’s condition.

Cosmetic issues, while they may affect a buyer's impression of the property, do not typically fall under the category of material defects that must be disclosed. Future neighborhood developments may be of interest, but sellers do not have a responsibility to disclose speculative or potential future changes that they are aware of unless they are already confirmed and will affect the property’s use or value. Regarding possible offers on the property, sellers do not need to disclose this information, as it relates more to the seller's negotiating strategy and current market conditions rather than the property's inherent condition.