Almost every home sold in British Columbia comes with a Property Disclosure Statement, the seller’s answers to a list of questions about the home’s condition. It isn’t required by law, but what you know about your home is, and the form is where that usually gets said. Here’s what BC requires sellers and their agents to disclose, how to fill in the form well, and how buyers should read one, from guidance by BCFSA, the province’s real estate regulator.
What the law requires
Sellers have a duty at common law to disclose material latent defects: defects a buyer couldn’t discover through a reasonable inspection that make the home:
- dangerous or potentially dangerous to the people living in it;
- unfit to live in; or
- unfit for the purpose the buyer has told the seller they’re buying it for.
Defects a reasonable inspection would reveal, such as a visibly cracked window, are patent defects, and the buyer is expected to find those.
Your REALTOR®’s duty is broader
Under BC’s Real Estate Services Rules, a real estate professional must also disclose to buyers, in addition to the defects above:
- a defect that would make the home unfit for the buyer’s purpose, if the buyer has told the licensee that purpose;
- a defect that would be very expensive to fix;
- a notice from the municipality or another local authority saying something about the property must or should be remedied; and
- a lack of appropriate municipal building or other permits.
If you don’t disclose a material latent defect your agent knows about, your agent must disclose it. If you tell them not to, they must stop acting for you.
BCFSA’s examples of material latent defects include high radon levels, a basement that leaks when it rains, structural damage, failure of the building envelope, underground oil or storage tanks, problems with drinking water, and unremediated damage from illegal use such as a grow operation. Electrical or gas work done without permits and inspections counts too.
The Property Disclosure Statement
BC has no prescribed form, but the Property Disclosure Statement is the common way to disclose. It’s voluntary, there are versions for different kinds of property such as strata homes, and it asks about things like water, renovations and permits, and oil tanks. The answers are given as of the date you sign it.
How to fill it in well:
- Answer from what you actually know. “Yes”, “No”, “Do not know” and “Does not apply” mean different things. Don’t guess, and don’t write “no” when the honest answer is “I don’t know”.
- Explain. Use the comments to add context: “Basement flooded in 2019; perimeter drains replaced in 2020, invoice attached.”
- Attach the paper. Permits, inspection reports, oil tank removal certificates, receipts and warranties make your answers credible.
- Update it. If something changes before completion, tell your agent and correct the statement.
You can choose not to make any statements by signing a “Property No Disclosure Statement” instead. BCFSA cautions that this may expose you to a lawsuit later if a defect you knew about turns up, and buyers will ask why you didn’t disclose.
How it becomes part of the contract
An offer often includes a condition that the buyer receive and approve the Property Disclosure Statement. When the buyer removes that condition, the statement is incorporated into and forms part of the contract. So your answers matter, and so do your “do not know”s.
If you’re the buyer
Read the statement as a starting point, not a guarantee. Follow up every “yes” and every “do not know” with questions and documents, and have the home inspected regardless. Compare the answers with the municipality’s permit records, which What to ask the city before you buy covers. If the seller signs a no-disclosure statement, treat it as a reason for more due diligence, not less. For newer homes, check home warranty coverage on BC Housing’s New Homes Registry; an owner-built home has no third-party warranty, though an owner-builder who sells within 10 years of occupancy remains liable for defects during that period.
Questions people ask
Do I have to fill in a Property Disclosure Statement?
No, it’s voluntary. But you must still disclose material latent defects you know about, and your agent has a broader duty to disclose.
I fixed a problem years ago. Do I need to mention it?
If the form asks, answer it, and explain the repair. A disclosed and documented repair reassures buyers; an undisclosed one found later causes problems.
Can I sell “as is”?
You can sell without making repairs, but “as is” doesn’t remove your duty to disclose material latent defects you know about.
General information for sellers and buyers in British Columbia, current as of publication. If you’re unsure whether something must be disclosed, ask your REALTOR® or get independent legal advice.