The word “disclosure” has cropped up in two major areas of homebuying in recent years. Only the seller's agent represents the seller. A buyer's agent represents the needs of the buyer. The source of the compensation is not what determines the nature of the relationship. A buyer's agent who is paid from the seller's proceeds is still obligated to represent the interests of the buyer in the transaction, not those of the seller.

Because of this relationship with the seller — and given that you should certainly tell the real-estate agent all you can about your financial situation, your mortgage application, and what you need and want in a home — you should not disclose exactly how much you will pay for a home.

If you have been approved for a mortgage, both you and the agent know the price range in which you are shopping. Do not be any more specific than, “I want to look at something costing no less than about $120,000 and no more than $150,000.” Don't give away your bargaining hand by telling the seller (or the agent working for him) the specific dollar amount you are willing to spend.

The second use of the term disclosure refers to an agent and seller bringing any problems with the house to the attention of buyers, hiding nothing. Disclosure can also apply to a seller's or agent's knowledge of plans for the community or the street on which the house stands — plans that may turn off a prospective buyer.

Every state has specific laws related to disclosure. These vary by state, but are clearly laid out according to each state's laws.

In any event, you cannot afford to accept passively what agents say — or do not say. Rely on them for information, but research and poke around on your own to get satisfactory answers to the many questions raised in these chapters.