What must be included in a property disclosure statement?

A property disclosure statement is a crucial document that a seller provides to a buyer, detailing the condition of the property and any known issues that could affect its value or the buyer's decision. The correct response highlights that the statement must include any known defects and material facts.

Including known defects is essential because these issues can significantly impact the property’s livability and safety. Material facts refer to any information that could influence the buyer's decision to purchase the property, such as issues with plumbing, electrical systems, roof condition, or pest infestations. This transparency allows buyers to make informed decisions.

In contrast, focusing solely on major repairs from a limited timeframe or providing a list of previous owners does not encompass the comprehensive nature of what should be disclosed. Details about neighborhood market trends, while potentially useful information, do not pertain directly to the property's condition or any defects that might influence a buyer's experience. Thus, the requirement emphasizes the importance of honesty and clarity in real estate transactions, ensuring that buyers are aware of any factors that could affect their investment.