In real estate, where would a seller document any known material defects of the property?

A seller documents any known material defects of the property in the disclosure section of the contract. This section is specifically designed for disclosure purposes, where the seller is obligated to inform potential buyers about any material defects or issues with the property that could affect its value or desirability. This legal requirement protects the interests of both the buyer and seller by ensuring transparency in the transaction.

Having this information in the contract's disclosure section allows buyers to make informed decisions before purchasing the property. It is also crucial because failing to disclose such defects can lead to legal consequences for the seller, including potential claims of misrepresentation or fraud after the sale is completed.

Other options might also address aspects of property functions and conditions, but they do not serve as the formal mechanism for disclosing known defects in this way. For instance, an inspection addendum primarily pertains to the findings from a professional inspection and may not cover all issues known to the seller. A property listing may provide general information but does not fulfill the legal obligation to disclose material defects. An appraisal report focuses on the value of the property rather than its condition, making it unsuitable for documenting defects.