How do I review property disclosure statements?
Got a property disclosure statement? Don’t sign blindly. Read this first — it will save you money and stress.
What a property disclosure statement is (plain and fast)
A property disclosure statement is a seller’s written form listing known issues with the home: past repairs, water damage, pests, renovations, permits, and any material defects. It’s not a warranty. It’s a starting point for buyer due diligence.
Keywords: property disclosure statement, seller disclosure, material defects, real estate disclosure.
Step-by-step: How to review a disclosure statement like a pro
- Read line-by-line. Treat every checkbox and note as a claim. Don’t skim.
- Verify specific claims. If the seller lists a repaired roof, ask for invoices, contractor contact info, and permit records.
- Flag vague language. “Occasional leak” or “fixed in the past” needs dates, scope, and proof.
- Cross-check with your home inspection report. If the inspector finds issues not on the disclosure, raise it immediately.
- Confirm permits and renovations. Unpermitted work can kill resale value and trigger municipal fines.
- Ask for warranties and receipts. Appliances, HVAC, or structural fixes often carry transferable warranties.
- Note excluded items. If the seller excludes systems or appliances, put it in writing in the purchase agreement.
- Escalate to professionals. Bring your real estate lawyer or agent for legal language or negotiation strategy.
Red flags that stop a deal or demand repairs
- Major repairs marked “unknown” or “not applicable.”
- Recurrent water or mold claims.
- Unpermitted additions or renovations.
- Structural, foundation, or pest issues listed.
- Recent “temporary” fixes with no documentation.
Keywords: latent defects, home inspection, unpermitted work, structural issues.
What to do if the disclosure is incomplete or inaccurate
- Request documentation in writing within a short deadline.
- Ask for credit at closing or a lower purchase price for known defects.
- Require repairs performed by licensed contractors and inspect before closing.
- Walk away if seller won’t disclose or fix major issues. Buyer protection is real.
Notes on legal protection and timing
A disclosure is part of the legal record. Misrepresentation can lead to claims after closing, but proving intent is costly. Use your contingency periods (inspection and lawyer review) to confirm facts. Always get legal advice before waiving conditions.
Quick checklist (copy & use)
- Read every line.
- Request receipts, permits, contractor names.
- Compare with inspection report.
- Demand written warranties or credits.
- Involve your lawyer before waiving rights.
I help buyers read and act on disclosure statements so they don’t inherit surprises. For a no-nonsense review and negotiation strategy, contact Tony Sousa — local realtor and market authority: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
