What is a statement of information?

A statement of information specifically refers to a document that provides a detailed announcement of any liens or encumbrances against a property. This document is vital in real estate transactions because it helps potential buyers and lenders understand the financial status of the property. By disclosing any existing claims, such as mortgages, tax liens, or other encumbrances, the statement of information serves to inform all parties involved about potential issues that could impact ownership or value.

In real estate, knowing about existing liens is crucial for due diligence. Buyers want to ensure that they are aware of any obligations tied to the property that could affect their investment. Lenders also rely on this information to assess risk before providing financing. Thus, the statement of information functions as a protective measure, allowing stakeholders to make informed decisions based on the property's debt history.

Other options, such as summaries of benefits, legal agreements, or market trend reports, do not pertain to this specific legal document's function within real estate transactions, making them less relevant in this context.