Property Disclosure Statement Changes

Property Disclosure Statement Changes: What Sellers and REALTORS® Need to Know

If you're planning to sell property in British Columbia, understanding your disclosure obligations is essential. A clear and honest Property Disclosure Statement (PDS) helps protect both the seller and the buyer from misunderstandings, disputes, and legal risks.

This blog will explain recent updates to the property disclosure process in BC, the introduction of the new Property No-Disclosure Statement (PNDS), and how both sellers and REALTORS® can navigate these changes with confidence.

✅ Why Property Disclosure Still Matters

Even if you're unsure about certain details of the property you're selling, leaving the PDS blank or crossing things out does not eliminate risk. In fact, doing so can cause confusion and may still be seen as a form of representation.

That’s why real estate professionals, including the BC Real Estate Association (BCREA) and the BC Financial Services Authority (BCFSA), recommend completing the PDS whenever possible—especially if the seller has knowledge about the property's condition.

📄 What is the Property No‑Disclosure Statement (PNDS)?

The PNDS is a new form designed for special situations where the seller:

• Doesn’t have firsthand knowledge about the property (e.g., estate sales or foreclosures), or

• Chooses not to make any statements about the property’s condition.

The PNDS clearly shows that the seller is not making any representations—but it’s important to note:

If the seller is aware of any material latent defects, they must still disclose them—even if using the PNDS.

🛑 What is a Material Latent Defect?

A material latent defect is a serious issue with the property that:

• Is not visible during a typical inspection, and

• Could make the home unsafe or unfit to live in.

Examples might include mold behind the walls, a hidden structural issue, or a basement that regularly floods.

If such defects are known to the seller, they must be disclosed, regardless of whether they’re using a PDS or a PNDS.

🚨 REALTORS® Must Cease Services If Disclosure Is Blocked

If a seller refuses to allow disclosure of a known material latent defect, real estate agents are required to stop providing trading services.

This protects the agent and ensures that ethical and legal standards are followed during the transaction.

📝 Do Not Attach the PNDS to the Contract

It’s important to understand that the PNDS should not be included in the Contract of Purchase and Sale (CPS). Including it in the contract can create confusion or unintended legal obligations. The PNDS is simply a document to show that the seller has chosen not to make any representations—not a part of the legal agreement.

📌 Summary for Sellers and REALTORS®

💬 Final Thoughts

Clear and honest disclosure helps avoid future problems and builds trust in any real estate transaction. Whether you’re a seller trying to minimize legal risk, or a REALTOR® guiding your client through the process, understanding the right use of the PDS and PNDS is key.

If you're unsure which form to use or how to disclose correctly, it’s best to speak with your REALTOR® or a legal professional. At Rexara Realty Inc., we’re here to guide you every step of the way.

Thanks,

Gurjit Ghai
Personal Real Estate Corporation
Rexara Realty Inc.
📞 778-855-2019
📧 info@rexararealty.com
🌐 www.rexararealty.com