What are "statutory disclosures" in the context of real estate?

Statutory disclosures refer to the required disclosures mandated by law regarding the condition and history of a property. In real estate transactions, these disclosures are essential as they provide prospective buyers with critical information about the property that could affect their decision to purchase. For example, sellers are often obligated to reveal known defects or issues related to the property, such as lead paint presence, prior flooding, or pest infestations, depending on state laws.

These disclosures aim to promote transparency and protect buyers from unforeseen issues that could arise after the purchase. By ensuring that sellers provide this information, real estate law helps facilitate fair transactions and reduces the risk of disputes post-sale related to property conditions.

While voluntary disclosures can provide additional insights into a property, statutory disclosures specifically refer to those legally required, which are non-negotiable and must be provided to potential buyers. This legal mechanism ensures that buyers are adequately informed, thereby fostering a more equitable real estate market.