What is a Property Disclosure Statement?

When buying or selling a home, transparency matters - and one of the most important documents in a real estate transaction here in BC is the Property Disclosure Statement (PDS).

It’s a form meant to protect both the buyer and the seller by making sure important information about a property’s condition is clearly communicated before a deal is finalized.

The Property Disclosure Statement was introduced by the BC Real Estate Association (BCREA) in 1991. Its goal? To give buyers peace of mind by having sellers disclose - truthfully and completely - any known issues or defects with a property.

At the same time, it protects sellers by confirming that all relevant information has been shared with prospective buyers.

What Does a PDS Cover?

The Residential PDS goes beyond the legal minimum disclosure requirements and asks about specific potential issues such as:

Buried oil tanks, Asbestos insulation, Unauthorized rental suites, Renovations done without permits, Moisture or water problems, Unregistered easements or encroachments, Past use as a grow-op or drug lab.

There are different versions of the form depending on the type of property:
Residential, Condominium, and Rural — each tailored to ask relevant questions.

How Does It Work?

The seller completes the PDS when they list the property with their REALTOR®.

The seller must update the statement if any new information arises before closing.

Prospective buyers typically review the PDS and may make their offer subject to receiving and approving it within a certain timeframe.

 Once satisfied, the buyer signs the PDS as well.

 A Few Things Buyers Should Know:

If a seller is unwilling to provide a PDS, or if a line has been drawn through the questions, it should raise a red flag.
In some cases - like estate sales, bank foreclosures, or absentee landlord properties - sellers may genuinely not know enough about the property to complete one.

Important: Even with a completed PDS, buyers are strongly encouraged to get an independent home inspection. The PDS reflects only what the seller knows at the time of disclosure - it’s not a warranty or guarantee about the home’s condition.

Use it as a Starting Point, Not the Final Word.

The Property Disclosure Statement is a helpful tool for understanding a property’s history and condition, but it’s just one piece of the puzzle.

Buyers are still expected to do their own due diligence, conduct inspections, and ask questions. As the saying goes - “buyer beware” is still very much a part of real estate.

If you’d like to see what a blank PDS looks like or have questions about how it works in your buying or selling process, feel free to reach out anytime. I’m always happy to help.

Jon Pereira
📱 778-345-8897
📧 jon@jonpereirarealty.com
🌐 www.jonpereirarealty.com