When does the seller typically bear the burden of disclosure in a real estate transaction?

In a real estate transaction, the seller typically bears the burden of disclosure prior to listing the property. This responsibility involves providing potential buyers with valuable information regarding the condition of the property, any known defects, and relevant legal issues, such as liens or easements. By disclosing these details upfront, sellers can foster trust and transparency with prospective buyers, which can lead to smoother negotiations and potentially a quicker sale.

This proactive approach is often codified in state laws, which require sellers to complete disclosure forms that inform buyers about property conditions. Waiting until after a contract is signed or at closing to disclose critical information could lead to disputes, legal issues, or even rescinded agreements. Therefore, the emphasis is on transparency before the property is actively marketed, ensuring that buyers are fully informed and can make decisions based on accurate representations of the property's state.