Real Estate: Property Condition Disclosure Statement
What is the Property Condition Disclosure Statement referred to as in Article 14?
1) Property Condition Disclosure Statement
2) Article 14 Disclosure Statement
3) Property Statement
4) Condition Disclosure Statement
Answer:
The Property Condition Disclosure Statement in Article 14 is correctly identified by option 1) Property Condition Disclosure Statement.
The Property Condition Disclosure Statement referred to in Article 14 is known as option 1) Property Condition Disclosure Statement. This statement serves as a formal declaration from a property seller to a buyer, detailing the current condition of the property being sold. The purpose of this document is to inform the buyer of any known issues or defects with the property that could influence the buyer's decision or negotiations. In the context of real estate transactions, it's a critical piece of documentation that must be accurately completed to maintain transparency and avoid future disputes between the buyer and seller.
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.