Business Glossary

a statement required by law, in which sellers of particular kinds of property, or under certain circumstances, must reveal specified information to potential buyers. Many sellers of investment interests in real estate are required to disclose their own interest and even the profit potential; home sellers may disclose defects, even though they have been corrected. Failing to provide adequate disclosure may give the buyer grounds for a lawsuit.

in which he states that he did not examine the financial statements and does not accept responsibility for their accuracy.</li><li>renunciation of ownership ofa statement required by law, in which sellers of particular kinds of property, or under certain circumstances, must reveal specified information to potential buyers.

Examples:

• Most states require sellers of real estate to disclose any "dangerous condition" to potential buyers.
• Many sellers of investment interests in real estate are required to disclose their own interest and even profit potential.
• Sellers of timeshares interests must disclose which portions of the project will be retained by the developer, and the costs and conditions of use by time-share buyers.

See also property condition addendum or clause