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Most states require Seller Disclosures as part of the home buying and closing process. These documents include the seller's closing disclosure, HUD1 settlement statement, truth in lending statement, and good faith estimate.It discloses any issues with the property that the seller is aware of. Real estate agents often advise sellers to fill out the form honestly and accurately to avoid future legal complications. A Closing Disclosure is a detailed final review of a homebuyer's loan terms, fees, and costs. It discloses any issues with the property that the seller is aware of. The new Closing Disclosure is designed to help borrowers better understand the terms of their loan and ensure transparency in the real estate transaction. The Seller's Closing Disclosure is an important document that outlines the details of a real estate transaction between buyer and seller. Most attorneys will counsel sellers not to fill out the disclosure specifically to deny a path forward to a litigious buyer. Further, the form must include all loan costs associated with the transaction, listed in a table under the heading "Loan Costs.