Kovats Real Estate School Practice Test 2026 - Free Real Estate Practice Questions and Study Guide

The correct choice, which defines "Sellers Disclosure," refers to a legal document in which the seller reveals known defects or issues with the property to potential buyers. This document is designed to protect both the seller and the buyer by ensuring transparency in the transaction. By disclosing any known problems, such as structural defects, plumbing issues, or past pest infestations, the seller allows potential buyers to make informed decisions based on the actual condition of the property.

The Sellers Disclosure is not merely a marketing tool; it holds legal significance by often being required by state laws and can serve as a defense for the seller against future claims regarding undisclosed issues. Transparency helps establish trust in the real estate process, allowing buyers to understand the true nature of what they are purchasing.

The other options highlight different aspects of real estate but do not accurately capture the essence of a Sellers Disclosure. For instance, a summary of property sales focuses on market trends rather than the specific conditions of an individual property, while estimates of closing costs pertain to the financial side of the transaction rather than property defects. Additionally, a marketing strategy for selling properties is unrelated to disclosure of property issues.