Which document informs buyers about potential hazards and risks associated with a property?

The Seller's Disclosure Statement is critical in real estate transactions because it provides potential buyers with vital information about the property's condition and any known hazards or risks. This document encompasses a variety of important details, including past issues related to the property, such as water damage, pest infestations, or environmental hazards like mold or lead paint. By disclosing these factors upfront, the seller protects both themselves and the buyer, ensuring that the buyer is fully informed before making a purchasing decision.

A title search report primarily focuses on the ownership history of the property and any liens or encumbrances that may exist but does not typically discuss potential physical hazards. The loan agreement pertains to the financing terms and conditions and is unrelated to the property's physical risks. Similarly, the property inspection report provides insights into the physical state of the property and identifies existing issues but may not cover all potential hazards that the seller is aware of, making the disclosure statement a crucial supplement to these documents.