Which statement about disclosure's role in contract validity is correct?

• A. Disclosure is optional and does not affect validity.
• B. Disclosure, including accurate legal description, is required to support validity.
• C. Disclosure only relates to financing terms.
• D. Disclosure is only needed after closing.

Answer: (B)

Disclosures underpin a contract’s enforceability by ensuring both parties have accurate, complete information about what is being exchanged and any risks attached to it. In real estate, the legal description precisely identifies the property being conveyed, so there’s no confusion about what is being bought or sold. An accurate description prevents disputes over boundaries or what parcel is included. Along with that, disclosing known defects, encumbrances, and other material facts helps ensure that the agreement rests on truthful information, reducing the chance of misrepresentation claims that could make the contract voidable or void.

So, disclosure is not optional, it isn’t limited to financing terms, and it’s typically addressed before closing to protect validity.