Disclosure of Defects - Real Estate Transactions

I have included a Statement of Disclosure as one of the conditions a buyer can choose when completing my standard Offer to Purchase agreement. I strongly recommend that it be used. Keep in mind that it cannot cover every imaginable defect a property may have. For that reason, a buyer still needs to make their own careful enquiries and inspection and should seriously consider obtaining a professional home inspection as another condition under the Offer.

Partial or Deceptive Disclosure is Probably Not Disclosure

Someone may know they are obligated to disclose a latent defect but they may want to play it down or they may want to disclose it in a manner that is not frank and open. That may be the equivalent of non-disclosure. See: Hancock v. Richardson, 2012 SKPC 132 - Provincial Court, Whelan, August 20, 2012 (PC12129)

Condition of Home on Possession Date

I don't hear specific complaints that often, but sometimes a seller does not leave a home in as clean condition as was anticipated by the purchaser. It should be a matter of common courtesy to clean and vacuum a home before moving out. However, sometimes the seller does not do so. Sometimes there is a difference of opinion between the buyer and seller as to what this should require. At first, it seems that one could simply insert a clause in the offer stating that the seller must thoroughly clean the home before leaving. Unfortunately, many people would have different interpretations as to what is required. If a disappointed buyer took the sellers to small claims court over such a clause, the court might find the clause to be void for uncertainty because it does not sufficiently specify what must be done and against what standard it is to be measured. Attempting to draft a clause with sufficient detail as to expectations is also virtually impossible as some would find the standards either too onerous or not onerous enough. For that reason, lawyers and realtors typically have not made this a written term of an offer. It has been left as a matter of expected courtesy rather than a contractual obligation. If you have specific concerns about a home you are purchasing, you may want to discuss this with the seller (or the realtors) for a solution to your situation. However, you should probably assume that a home will not likely be left any cleaner than it was at the time of viewing and take any related concerns into account in determining what amount should be offered for the home. A lower price can serve as compensation for the extra work likely involved at the time of possession. My offer to purchase form includes words to the effect that the buyer is entitled to receive the Property "in substantially the same condition as it is at the date this Offer is presented to the Vendors."