What is a Property Condition Disclosure Statement?
The PCDS is a disclosure document a seller is required by law to complete and provide the buyer in addition to the purchase agreement. The PCDS forms part of the purchase agreement and the buyer is permitted to rely on the seller’s disclosure as set out in it. The seller must disclose various key points a buyer would want (is the property connected to sewer or on septic for example) to know before buying, as well as disclosing any defects or issues with the property that would normally require disclosure. There are requirements to inform buyers of strata details where the property is a strata. There are requirements to disclose of issues that would clearly be relevant in making a decision to buy or not to buy, such as whether or not the property has been a grow op in the past.
The full disclosure in this document is sometimes not provided. This is common when buying a property being sold under an estate, or in foreclosure. It is also possible that a seller fails to properly disclose or answers questions incorrectly or incompletely. It is up to the buyer to review it with their lawyer and/or realtor to determine if the seller’s disclosure is satisfactory, and if there are any answers that raise a concern, further due diligence should be completed. The buyer will take the property “as is” if the buyer removes subjects, unless deficiencies are negotiated as part of the negotiation on purchase price, with any requirements on the seller to make repairs included as an additional term in the purchase agreement.
- What is a Property Condition Disclosure Statement?
- What is the difference between the completion date, possession date and the adjustment date and how does this affect me as a seller?
- I have a mortgage to pay out on closing – how do I get this done?
- What charges can I expect when paying out my mortgage?
- Why is my prepayment penalty higher than I thought?
- What are my closing costs?
- Paying the realtor – how does this occur?
- How are the property taxes, utilities, pad rent, strata fees or other adjustments dealt with when selling a property?
- What happens if I can’t afford to clear title to the property?
- What must I do if I am not a resident of Canada and I want to sell my property?