What’s a property disclosure statement?
Is the seller hiding costly problems? Here’s the property disclosure statement that tells you everything.
What is a property disclosure statement?
A property disclosure statement is a written form sellers complete to report known issues and material facts about a home. It’s legal paperwork in most markets designed to protect buyers and limit seller liability. Think of it as a checklist of what the seller knows about the property’s condition.
Why it matters — quick and direct
- Buyer protection: It flags known defects (water damage, structural problems, pest infestations).
- Legal clarity: It reduces surprises and potential lawsuits after closing.
- Negotiation power: Buyers can use disclosures to request repairs, price reductions, or credits.
Common items on a disclosure form
- Water damage and leaks
- Roof condition and age
- Foundation or structural issues
- Past or present infestations (termites, rodents)
- Mold or environmental hazards
- Additions, renovations, or zoning violations
- Plumbing, electrical, heating and HVAC problems
- Insurance claims history
How to read and use the disclosure statement
- Read every line. Don’t skip checkboxes.
- Cross-check with the home inspection report. If the inspector finds issues not disclosed, that’s a red flag.
- Ask follow-up questions — get dates, invoices, permits. Signed statements without supporting detail aren’t enough.
- Use disclosures to negotiate. If a seller admits to roof leaks, ask for repair quotes or a price adjustment.
What a disclosure statement does NOT do
- It doesn’t guarantee the home is problem-free. Sellers disclose known facts — they don’t warranty the property.
- It won’t replace a professional inspection. Always hire a licensed home inspector.
Legal and timing tips for buyers
- Review disclosures before waiving conditions. Don’t sign unconditional offers without seeing the form.
- Keep records. Save the disclosure with your purchase documents. It matters if disputes arise later.
- Consult your agent or lawyer if disclosures are vague or omit major items.
Seller obligations — be transparent
Sellers must answer truthfully. Misrepresenting or hiding defects can lead to legal claims. If you’re selling, disclose what you know. Full transparency closes deals faster and lowers legal risk.
Actionable checklist for buyers
- Request the property disclosure immediately.
- Book a thorough home inspection.
- Compare inspector’s findings to seller answers.
- Request repairs, credits, or walk away if undisclosed major defects appear.
If you want a quick, expert review of a disclosure form or help negotiating repairs and credits, contact Tony Sousa — local real estate expert who handles legal paperwork and disclosure issues with precision.
Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
