Statement is the term given to something that expresses facts and information either in writing, or verbally. Statements can be useful in different ways. Income statements, for instance, is a statement that expresses how a company performs financially.
Statements are widely used in business in stating information about their operations. Financial statements, for example, are statements which records a company’s financial activities or everything relating to the financial status of a company or business.
A disclosure statement is a document that discloses a detailed outline of the terms, conditions, rules, and standards of a transaction (e.g. financial transaction, such as loans or investments).
For example, when a person applies for a loan application of any kind, the lender gives him/her a disclosure statement containing the details of the loan before the loan process is finalized.
Disclosure statements usually contain information that are relevant to both the sender and receiver. Disclosure statements explain all information about a business statement transaction or operation in full detail, including any issues or problems (of a property, for example). A disclosure statement contains everything the concerned parties (e.g. a borrower) needs to know about the transaction.
Disclosure statements usually gives the receiving party a chance to review the details of the transaction, and to express his/her opinions, agreement or disagreement on the given terms, conditions, and other details. Disclosure statements also protect sellers or lenders from lawsuits from the buyers or borrowers.
Disclosure statements need to contain all information in order for both parties to be avoid arguments, misunderstandings, or lawsuits of any kind. With the right information, you’ll be able to craft a disclosure statement which would satisfy your receiving party, and writing a disclosure statement will not be that hard. You just need to remember these things:
Your disclosure statement is just another document which records your agreement with the other party so make sure it discloses everything your receiver needs to know before sending it out.