Full Disclosure

A requirement to reveal fully and accurately all material facts, a requirement based on the theory that no fraud is committed if the purchaser has accurate and full information regarding the property to be purchased. A broker is under a legal obligation to disclose in full to a client all known, relevant facts affecting a proposed transaction. Many state subdivision and condominium laws, as well as the federal Interstate Land Sales Full Disclosure Act (concerning subdivisions), require a developer to disclose fully all material facts of a project to each prospective purchaser or lessee through required distribution of a public report.