What essential information must be disclosed to a potential buyer before completing a real estate transaction?

The obligation to disclose any known defects and material facts about a property is rooted in the principle of transparency in real estate transactions. Sellers are required to inform potential buyers of significant issues that could influence the buyer's decision to purchase the property. This includes physical defects like structural issues, pest infestations, or problems with systems such as plumbing or electrical. Material facts may also encompass environmental hazards, title issues, or other pertinent information that could impact the property's value or the buyer's enjoyment of the home.

By disclosing these defects and facts, sellers help ensure that buyers can make informed decisions. This disclosure protects not only the buyer's interests but also helps the seller avoid potential liability for misrepresentation or failing to disclose known issues after the transaction has been completed.

In contrast, information such as property zoning classifications, agent commission rates, and future neighborhood developments, while potentially important for a buyer to consider, do not carry the same legal obligation for disclosure in many jurisdictions. These details are contextually relevant but do not outright affect the integrity and safety of the property in the same fundamental way that known defects do.