What is a property disclosure statement and why should a home buyer assess them?
Hoogbruin & Co.’s real estate litigation lawyer, Arsen Krekovic, explains what property disclosures are and how they impact home buyers in BC’s busy real estate market.
Sellers have a legal obligation to disclose any known material defects related to the property being sold. We should caution against relying solely on the seller’s disclosure as it may not be sufficient, and it may be risky. Hidden defects or structural issues that could affect the property’s value or your decision to proceed with the purchase may exist in any transaction.
Previous blogs you may find helpful on disclosures and other common pitfalls.
Home buyers are rewarded practically when they look beyond initial property disclosures
Uncovering hidden defects can take time and a closer look by the would-be homeowner or experts they may call in to identify situations that are not immediately noticeable to a buyer, or even seller. These defects could include structural issues, water damage, electrical problems, or plumbing issues that may impact the property’s value or safety.
Benefits of accessing Property Disclosure Statement
The expert help may be a home inspector, or contractor they have worked with before or anyone trained to thoroughly evaluate a property’s condition. The advantages of a closer look may make the difference between the parties resolving an issue before the sale concludes, or dealing with complexities that require legal counsel to unravel or to begin court action.
These benefits include:
Negotiation opportunity : Discovering significant defects can give buyers leverage in negotiations. If a closer examination uncovers material defects that were not disclosed or were downplayed by the seller, buyers can request repairs, a price reduction, or credits to address the issues.
This step helps protect the buyer’s interests, ensuring they are not left solely responsible for expensive repairs. It might be helpful to consult legal counsel experienced in real estate litigation.
Long-term financial planning : Potential issues identified early on can save buyers from unexpected financial burdens in the future.
It is important for all qualified help to provide estimates on the cost of repairs or replacements. This allows buyers to assess whether they are financially prepared for the property’s upkeep and maintenance needs.
Peace of mind : Knowing that a property has been properly inspected, in addition to any disclosures the seller may offer, and having an unbiased assessment allows buyers to proceed with the purchase with confidence. For buyers, making an informed decision is a great benefit and boon to peace of mind if the due diligence process is in place. Homebuyers are more likely to be protected from purchasing a property with hidden defects and it also eliminates the specter of financial strain or the compromise of safety.
Sellers can also benefit from looking closely at their property so that they are aware of any issues before listing the property, enhancing transparency and attracting confident buyers.
Need help with legal implications? Consult your real estate litigation lawyer
Consult with Arsen Krekovic, a trusted real estate litigation lawyer, to understand the legal implications of property disclosure and to resolve legal issues arising from your real estate transactions.
Contact us here to reach us via our website
info@hoogbruin.com
1166 Alberni Street Vancouver
604.305.0194
