What is the purpose of a property disclosure statement?

The purpose of a property disclosure statement is to inform potential buyers of the condition of the property. This document serves as an essential tool in the real estate transaction process, as it details any known issues, defects, or important factors that may affect the property's value or livability. By providing this information, sellers promote transparency and help buyers make informed decisions, ideally preventing misunderstandings or legal disputes after the sale.

Conversely, the other options do not align with the function of a property disclosure statement. For instance, a tax assessment pertains to the property's valuation for tax purposes, which is separate from its physical condition. Similarly, outlining the financial history of the property would require different documentation, such as a financial statement or title report. Predicting the future value involves market analysis and speculation, which are not the goals of a property disclosure statement.