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A seller's disclosure is a document that requires sellers to reveal details about the property's condition and its defects. It discloses any issues with the property that the seller is aware of.File Form 1099-S, Proceeds From Real Estate Transactions, to report the sale or exchange of real estate. A seller's disclosure report adds transparency to a real estate transaction. Learn what a seller disclosure form is and why it's important. If it completed a material acquisition in 20X1, the reporting entity should disclose the 20X1 income statement disclosures in their 20X3 financial statements. Sellers are required to disclose property information to the realtor and potential buyers based on state and local laws. Never send your raw financial statements unless your financials do not require any adjustments. RESPA requires that borrowers receive disclosures at various times in the transaction process. From NDAs to financial statements, having all of the required documents to sell your business is key to a smooth and painless transaction.