What is the main purpose of the disclosure requirements under CRESPA?

The primary objective of the disclosure requirements under the Commercial Real Estate and Settlement Procedures Act (CRESPA) is to ensure transparency in the real estate market. This transparency is vital because it helps all parties involved in real estate transactions, including buyers, sellers, and agents, understand the terms, conditions, and potential risks associated with a property. By mandating that certain information is disclosed, CRESPA aims to foster trust and informed decision-making within the market.

While protecting buyers from financial risks and informing constituents about certain disputes are important considerations, they fall under broader discussions related to the overall transparency CRESPA aims to uphold. Similarly, minimizing tax liabilities for sellers does not align with the primary focus of CRESPA's disclosure requirements, which is oriented towards clarity and comprehensive awareness in real estate dealings. Therefore, ensuring transparency is the core purpose addressed by these regulations.