What is the purpose of a Property Disclosure Statement (PDS)?

The purpose of a Property Disclosure Statement (PDS) is to provide potential buyers with relevant information about the property being sold, which is the responsibility of the seller. This document serves as a formal disclosure where the seller must disclose known issues or defects that could affect the property's value or the buyer’s decision to purchase. By revealing such information, the PDS helps promote transparency in real estate transactions, enabling buyers to make informed decisions and reducing the likelihood of disputes after the sale.

In contrast, the other options do not accurately describe the PDS. While negotiation elements may be influenced by information disclosed in the statement, it is not specifically designed for that purpose. The PDS also isn’t a legal requirement for appraisals, nor does it function merely as a guide for real estate agents, although agents may use it to advise their clients. The core function of the PDS is rooted in seller disclosures, establishing a fundamental understanding in real estate transactions.