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Property disclosure statements


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#1 trex

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Posted 14 February 2012 - 01:24 PM

BC realtors request sellers to complete a comprehensive property disclosure statement upon listing a property for sale.

The seller can then either fill it out or stroke it out and refuse to answer any questions on the statement.

If it is filled out it is supposed to act as an information base for the respective buyers.
However as it is not considered a legal document and nothing really prevents the sellers from lying through their teeth when filling it out what good is it really?

Of course there is always the property inspection company (and following report).
However some of the property inspection companies are really nothing but trained seals who's interests primarily lie with the real estate agencies.
It does not take a genius to figure out that an inspection company that scuttles sales deals by filling out scathing and picky inspection reports is no friend of the real estate agencies.

Any feedback about buyers being able to go back after sellers ( or sellers agents) for erroneous or omitted problems in the property disclosure statement?

Trex

#2 MarkoJ

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Posted 15 February 2012 - 02:21 PM

BC realtors request sellers to complete a comprehensive property disclosure statement upon listing a property for sale.

The seller can then either fill it out or stroke it out and refuse to answer any questions on the statement.

If it is filled out it is supposed to act as an information base for the respective buyers.
However as it is not considered a legal document and nothing really prevents the sellers from lying through their teeth when filling it out what good is it really?

Of course there is always the property inspection company (and following report).
However some of the property inspection companies are really nothing but trained seals who's interests primarily lie with the real estate agencies.
It does not take a genius to figure out that an inspection company that scuttles sales deals by filling out scathing and picky inspection reports is no friend of the real estate agencies.

Any feedback about buyers being able to go back after sellers ( or sellers agents) for erroneous or omitted problems in the property disclosure statement?

Trex


Property Disclosure Statements (PDS) are incorporated into and form part of the Contract of Purchase and Sale. For example, if the Contract of Purchase and Sale is 6 pages and the PDS is 3 the entire contract will read 9 pages. There can be consequences to lying on a PDS. I always encourage my sellers to disclose as much as possible. The buyer typically won't care that the deck was built without a permit if you disclose up front, but if you don't and they find out at City Hall the deck was added without a permit they will have a problem with that. The result is the same (deck built without permit) but in one scenario you all of a sudden have a concerned buyer, "what else are they not disclosing?"

I am not a lawyer so perhaps I do not understand what you mean they are not considered legal? You can write a legal contract on a napkin.

As far as inspectors I disagree with you. There are professional inspectors out there that do their job irrelevant of the brokerage that has recommended them to the potential buyers.

There is an inspector I find to be very knowledgeable and he has collapsed a number of my transactions due to his inspection findings; however, I continue to recommend him. Not everyone in Real Estate is out there to screw you over and make a quick dollar.

And yes, I've seen cases where buyers have successful gone after sellers over false disclosure.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

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#3 G-Man

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Posted 15 February 2012 - 04:13 PM

On my last house purchase I almost got burned by this. And I learned a valuable lesson. Always go to city hall to see if there are outstanding inspections.

The previous owners had done a modest reno to the basement which was nice enough (laundry room, bathroom, couple other things) but never got final plumbing or full final inspections. On the PDS they said no inspections outstanding (a complete lie). Of course being a trusting person assumed they had done it. Anyways two years later doing some historical research on the house I thought I would go and see if there were any plans for the house or perhaps plans from a 1950 ish reno that was done. Well no plans but the inspectors then asked me why I had three year old outstanding inspections!!

Needless to say I was freaked because who knows what possible mistakes had been made. Anyways got the inspections and just had to add two anti-hammer thingys to the washer. Passed other than that. That said it was a close call.

Always call your local planning office. Sellers cannot be trusted to tell truth.

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#4 MarkoJ

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Posted 16 February 2012 - 09:00 AM

On my last house purchase I almost got burned by this. And I learned a valuable lesson. Always go to city hall to see if there are outstanding inspections.

The previous owners had done a modest reno to the basement which was nice enough (laundry room, bathroom, couple other things) but never got final plumbing or full final inspections. On the PDS they said no inspections outstanding (a complete lie). Of course being a trusting person assumed they had done it. Anyways two years later doing some historical research on the house I thought I would go and see if there were any plans for the house or perhaps plans from a 1950 ish reno that was done. Well no plans but the inspectors then asked me why I had three year old outstanding inspections!!

Needless to say I was freaked because who knows what possible mistakes had been made. Anyways got the inspections and just had to add two anti-hammer thingys to the washer. Passed other than that. That said it was a close call.

Always call your local planning office. Sellers cannot be trusted to tell truth.


The PDS does not replaced due diligence that needs to be done on part of the buyer. I always grab the permit history for my buyers - unfortunately the City of Victoria started charging $35 (was free) for this service a few months ago which is a pain.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#5 G-Man

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Posted 16 February 2012 - 09:23 AM

$35 bucks seems like a good deal considering what could happen.

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#6 Bob Fugger

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Posted 16 February 2012 - 09:35 AM

The PDS does not replaced due diligence that needs to be done on part of the buyer. I always grab the permit history for my buyers - unfortunately the City of Victoria started charging $35 (was free) for this service a few months ago which is a pain.


I now have to pay $35 to get the permit history on my own house? So much for open government.

#7 MarkoJ

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Posted 16 February 2012 - 09:48 AM

I don't know whether this applies to home owners. Certainly does to non-home owners. The City of Victoria also now requires a copy of a contract of purchase and sale before they will let me pull the permits. It was so much easier two months ago - I would just phone them up and get everything I needed. Now I have to go down there, show the contract, wait to have everything printed, pay $35...get a parking ticket in the meantime :)

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#8 G-Man

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Posted 16 February 2012 - 10:13 AM

No you get a print out of your own no problem, free. It is just places you don't own yet and yes you need proof of plan to purchase to receive it.

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#9 Bob Fugger

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Posted 16 February 2012 - 11:24 AM

I don't know whether this applies to home owners. Certainly does to non-home owners. The City of Victoria also now requires a copy of a contract of purchase and sale before they will let me pull the permits. It was so much easier two months ago - I would just phone them up and get everything I needed. Now I have to go down there, show the contract, wait to have everything printed, pay $35...get a parking ticket in the meantime :)


No you get a print out of your own no problem, free. It is just places you don't own yet and yes you need proof of plan to purchase to receive it.


Thanks for clarifying, gents!

#10 MarkoJ

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Posted 16 February 2012 - 12:59 PM

It would be nice if they made permit histories available online to REALTORS®. I would gladly pay a $35 fee to be able to get everything I need for my clients from my office.

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#11 G-Man

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Posted 16 February 2012 - 01:35 PM

^ It would be nice if the city put a lot of things online. How about webcast council meetings. The province has been doing that since the last century for the legislature.

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#12 LJ

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Posted 16 February 2012 - 07:44 PM

I now have to pay $35 to get the permit history on my own house? So much for open government.


Hey Hey Hey, they promised you open government, not cheap government!!:D
Life's a journey......so roll down the window and enjoy the breeze.

 



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