What document allows sellers to disclose material information about the condition of the property they're selling?

The correct answer is indeed the SPDS, or Seller Property Disclosure Statement. This document is specifically designed for sellers to disclose material facts about the property they are selling. It covers various aspects such as the condition of the property, any known defects, and legal issues associated with the property, ensuring that potential buyers are well-informed before making a purchase decision.

By using the SPDS, sellers fulfill their legal obligation to disclose important information that might affect a buyer’s decision. This helps create a transparent transaction and can protect both the buyer and the seller from future disputes related to undisclosed property issues.

In contrast, the BINSR (Buyer Inquiry Notice and Seller Response) is used during the transaction process to address issues raised by buyers after they have reviewed the property and its disclosures, rather than being the initial document that covers property condition. The listing contract primarily focuses on the agreement between the seller and the real estate agent regarding the sale of the property, but does not specifically address property condition disclosures. The pre-qualification form is used to assess a buyer’s readiness to purchase but does not pertain to disclosure of property conditions.