What is the purpose of a "disclosure statement" in a real estate transaction?

The purpose of a "disclosure statement" in a real estate transaction is to inform the buyer about the property's condition. This document typically outlines any known issues, defects, or risks associated with the property, allowing buyers to make informed decisions. The disclosure can include information about structural problems, environmental hazards, repairs needed, and any other material facts that could influence the buyer's decision. Ensuring that buyers have this critical information promotes transparency and protects both parties in the transaction.

The other choices do not accurately represent the primary function of a disclosure statement. Finalizing the sale is more associated with the closing process rather than the disclosure itself. Negotiating the price relates to discussions between the buyer and seller based on various factors, including disclosures but is not the direct purpose of the disclosure statement. Establishing a timeline for the sale pertains to scheduling and procedural details, which are separate from the content of the disclosure regarding property condition.