What information must be disclosed to potential buyers if a property has known legal restrictions?

The requirement to disclose all known legal restrictions to potential buyers is rooted in promoting transparency and informed decision-making in real estate transactions. When a property has legal restrictions, such as zoning laws, easements, covenants, or other encumbrances, these can significantly impact how the property can be used or developed. By ensuring that potential buyers are aware of these restrictions, sellers facilitate an understanding of the limitations that may affect the buyer’s plans for the property.

Disclosing all known legal restrictions allows buyers to comprehensively evaluate whether the property meets their needs and objectives. It helps avoid future disputes and grievances that could arise if a buyer discovers these restrictions only after the purchase is complete. Fulfilling this obligation is vital for maintaining trust in the real estate market and for adhering to legal and ethical standards that govern property transactions. This approach ultimately leads to more satisfactory outcomes for both buyers and sellers.