What is the purpose of the seller's disclosure statement?

The purpose of the seller's disclosure statement is primarily to inform the buyer of known property issues. This document serves as a crucial communication tool that allows sellers to provide transparency regarding the property's condition. By detailing any existing problems, defects, or necessary repairs, the seller's disclosure helps buyers make informed decisions and manage their expectations about the property.

This approach not only supports the buyer in their due diligence but also fosters trust in the transaction process. Additionally, by disclosing all known issues, sellers protect themselves from potential legal claims that could arise from undisclosed problems after the sale.

The other choices do not accurately reflect the main intent of the seller's disclosure statement. While providing legal protection may be a secondary benefit, that is not its primary purpose. The closing process is outlined in different documents, and market conditions are generally summarized in separate market analysis reports, not the disclosure statement itself. Thus, the correct focus of the seller's disclosure is clearly on informing the buyer about the property’s known issues.