What is the primary purpose of a property disclosure statement?

The primary purpose of a property disclosure statement is to inform potential buyers of any known issues with the property. This document is critical in the real estate transaction process, as it serves to disclose material facts and defects that could affect a buyer's decision or the property's value. By providing this information, sellers fulfill their legal obligation to disclose known problems, thereby helping potential buyers make informed choices. Transparency in this aspect helps build trust between the buyer and seller and can prevent future legal disputes regarding undisclosed issues after the sale.

The other options do not accurately represent the main function of a property disclosure statement. While financial obligations are important for buyers to consider, they are primarily addressed through other documentation, such as financial disclosures or sale agreements. Appraisal of the property's market value is typically performed through a separate process involving licensed appraisers. Legal protection for the seller can be a secondary benefit of a disclosure statement, as it assists in demonstrating transparency; however, the primary intent remains to arm buyers with the necessary information about the property's condition.