Property disclosure statements

[jwilbrin]

Calgary Realtors please answer this question.



Why oh why do so few Calgary realtors acting on the behalf of the buyer not advise their clients to get a Property Disclosure statement from the seller?



Is it because they are unaware of it?

Is it lack of education from CREB on the existence and requirement to use this form?

Is it just the realtors wanting to close the deal without any complications?



What is it???



Whenever I meet a realtor and they find out I am an investor they immediately go into pitch mode. One question I always ask them is "Do you advise your buying clients to request a Property Disclosure Statement and do you advise your sellers to fill one out?" It is shocking how often they look dumbfounded as if they had never heard of a Property Disclosure Statement.



Buyers please ask your realtor about this form and demand that it be provided by the seller when you purchase a home. If answered honestly by the seller it will bring to light any major defects with the property that is not visible to you or your property inspector (ie. flooding).



Realtors start using them. There have been precedent setting court cases and RECA cases in Calgary that I feel will start putting more responsibility on Realtors to ensure they advise their buying clients to get a Disclosure statement.

 

[RedlineBrett]

Sellers are required to disclose any material latent defects on the listing contract before the property is loaded on MLS. This includes any notices received from the city.



The disclosure form is more detailed but many brokers (including me) feel it doesn't have a lot of teeth as the seller isn't warranting anything on it. Says right on the form. "The Buyer also acknowledges that this is not a warranty of any kind by the Seller or by any brokerage representing the Seller in this transaction, and is not a substitute for any inspection or warranties the Buyer may wish to obtain. The prudent Buyer will use this disclosure statement as the starting point for its own inquiries"



The seller can also check off 'I don't know' on every field.



There is no 'requirement' to use this form and sellers are not obligated to complete them. Many owners of investment property cannot accurately complete this form if they haven't lived in the property and have had managers look after it.



They are certainly getting more popular but your post makes it sound as if this is standard practice within the industry. It isn't.

 

[Mike Milovick]

In Ontario, there have actually been many, many cases due to misuse of Disclosure statement.



Representing buyers, we always ask for it. Representing sellers, we never ask them to fill out.



Mike