Property Disclosure Statement – What is it & why is it used?
In Nanaimo, as well as the rest of B.C., it is law that when listing a home you must complete a Property Disclosure Statement. The property disclosure statement is a document completed by the seller, about the property they are trying to sell. The PDS is part of the paperwork necessary to list a house. There are specific property disclosure statements for residential, strata and rural property.
Why is a property disclosure statement important?
The seller and the seller’s licensee (Realtor) must, by law, disclose any known material latent defects in the property to the buyer. The property disclosure statement helps protect the parties against allegations of negligent misrepresentation.
Some of the trouble areas include: boundaries (property lines), insulation, roof condition, septic tanks, structural problems, well water, etc.
When a buyer views a property disclosure statement it is important to note that they should still plan to make their own inquiries about the property. This is especially important if the seller has initialed that he/she has no knowledge as to the status of a question on the PDS. Many of the questions on the PDS are worded “ Are you aware… or To the best of your knowledge…”. In many cases a seller may not know the status of insulation etc.
All parties to the sales contract must sign and date the property disclosure statement.
This PDS does not mean that the buyer should not have a home inspection. This inspection will help buyers understand the condition of the property and what repairs may be needed.
If you have any questions regarding the Property Disclosure Statement please contact me and I will be happy to answer them for you.