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Professional Standards Manual

Trading Services

5. Strata Sales

(e) Additional Issues for Buyer's Agents - View Entire Section

(III) Property Disclosure Statement

Often the first document that licensees working with buyers see regarding the condition of a property is the Property Disclosure Statement (PDS). This document is useful as a starting point for buyers to begin their due diligence process.

A buyer’s agent should always recommend to the buyer that the PDS be incorporated into the Contract of Purchase and Sale. A buyer’s legal remedies are severely curtailed if the buyer does NOT make the PDS part of the contract.

Merely attaching a PDS to a Contract of Purchase and Sale does NOT incorporate the PDS into the contract. Clear evidence must exist that all of the parties intend to make the PDS part of the contractual obligations between them. To clearly state that the PDS is incorporated into the Contract of Purchase and Sale, the following clause must be inserted into the contract:

Property Disclosure Statement — Strata Title Properties Clause

The attached Property Disclosure Statement — Strata Title Properties dated (date) is incorporated into and forms part of this contract.

If the Property Disclosure Statement — Strata Title Properties has not been attached to the offer at the time it was written, the licensee must use a subject clause to allow for approval of the Property Disclosure Statement — Strata Title Properties, as follows:

Buyer’s Approval of Property Disclosure Statement — Strata Title Properties Clause

Subject to the Buyer on or before (date) obtaining and approving a Property Disclosure Statement — Strata Title Properties, with respect to information that reasonably may adversely affect the use or value of the strata lot, including any bylaw, item of repair or maintenance, special levy, judgment or other liability, whether actual or potential.

This condition is for the sole benefit of the Buyer.

 

If approved such statement will be incorporated into and form part of this contract.

 

A buyer’s agent should still recommend a property inspection, even where there is a PDS that is incorporated into the Contract of Purchase and Sale. A buyer’s agent should also recommend that the buyer carefully discuss the Property Disclosure Statement with the buyer’s property inspector.