The “Property Disclosure Statement” is a disclosure form commonly provided to buyers by the seller to help them understand what they are purchasing.  

Because these disclosure statements are often relied upon by buyers, it is essential that disclosures be honest and accurate to the best of your knowledge.  A property disclosure statement is often incorporated into a purchase contract and there are legal ramifications if a disclosure is found to have been fraudulently provided.   

At minimum, to post a property to our MLS system, we are required to include either a Property Disclosure Statement or a Property No-Disclosure Statement.  

You are not required to provide a disclosure, but if you choose not to, you will be asked to sign the no-disclosure form.  It has been common in the past for sellers to not provide disclosure in situations where they may not have direct knowledge of the property.  For example, when they are executor to an estate or if the property has been a rental for many years and the seller lives out of town.  

This is a complex document, with many sections and questions.  You may not have all the answers at hand, and that's fine. We can go over it together to guide you through the form.  

The form is divided into various sections, each with questions and the option to answer either...  

Yes / No / Do Not Know / Does Not Apply.

You are not expected to know every answer.  If you do not know, it is totally fine to answer, "Do Not Know". 

When answering a question, it is best form to INITIAL the answer rather than use a checkmark.  

If there are multiple owners, EACH owner should initial the answer. 

If you come across a question requiring further explanation, simply place an asterisk (*) to the left of the question (see example above) and then add further details in the "comments" section found on the last page of the form.  

e.g. "*1.B. - Existing tenancy in lower suite is month-to-month, tenant pays $1200/month including utilities." 

Buyers do take comfort in seeing a completed disclosure statement and may be wary of non-disclosures.  Lenders too, may require a completed disclosure statement prior to approving funding.  

LATENT DEFECTS

The one exception to the option to make no disclosure is where a known “Latent Defect” exists.  A latent defect is a hidden defect which could dramatically affect the use, safety, or value of the property.  There is a positive legal obligation to disclose any known latent defect.

  

An additional LATENT DEFECT form should be completed whenever a latent defect is known to exist.  If you’re unsure about a defect, ask us.

Generally, to be a latent defect it must be a DEFECT or problem which is MATERIAL to the use, safety or value (etc.) of the property and is LATENT, meaning hidden and not apparent through basic inspection or investigation of the property. 

Obvious and readily apparent problems are not required to be disclosed in the same manner, though it is generally advisable to over-disclose than under-disclose.  

REALTORS are legally REQUIRED to disclose any LATENT DEFECT of which we are aware.