Canadian law has required home Sellers to disclose to prospective Buyers “material facts” about the physical condition of their property. This includes letting the Buyers know about any defects that might affect the value or desirability of the property.
Even though seller disclosure is the law everywhere, written disclosure is not yet required in many areas. However a disclosure in writing is the best way to communicate clearly and to reduce uncertainty and misunderstandings.
The Seller’s Disclosure Statement is a form on which the Seller describes, to the best of their knowledge, physical aspects of the property. This includes such categories as land condition, structural condition, plumbing, roof work, electrical changes, additions and remodeling.
The Seller’s Disclosure Statement gives Buyers information to help them make an informed buying decision. Buyers appreciate a candid statement of the property and sellers have found that, rather than “scaring Buyers away”, properties with written disclosures tend to be more attractive to Buyers than those without. Buyers have confidence and peace of mind when they know that all known defects have been disclosed to them.
“Put it in writing” has always been sound business. Written disclosure takes that adage one step further, and a Seller’s Disclosure Statement should be a vital ingredient in every home sale transaction. The Seller’s Disclosure Statement is not a warranty of any kind and is not a substitute for any inspections or home warranties that the Buyer may wish to obtain.