What must a seller of a funeral home notify purchasers about when a funeral home is sold?

The correct answer emphasizes the importance of transparency regarding preneed contracts when a funeral home is sold. Preneed contracts are agreements made by clients to secure funeral services in advance, often involving financial payments. When a funeral home changes ownership, it is crucial for the new owner to inform potential purchasers about all preneed contracts that may be affected by the sale. This notification ensures that clients’ prepaid services are honored and that the obligations under those contracts are clearly understood by the new owner, maintaining trust and continuity of service for families who have made arrangements in advance.

In contrast, while information such as the number of employees, past service records, and the physical condition of the buildings may be relevant to the overall assessment of a business, they do not carry the same immediate legal and ethical implications as preneed contracts. Clients rely heavily on preneed contracts for their future funeral arrangements, making the disclosure of this information vital for compliance with legal standards and moral obligations in the funeral industry.