Pfanntastic Home Buyers Handbook Chapter 8 E
Subject to Approving Seller Disclosure Documents
In our journey towards buying your 1st home, so far we have covered.
- A broad overview in buying your 1st. Home
- Location, is Everything
- Selecting a Realtor
- Preparing to View Homes
- Watching the Market
- Financing Options
- Finding A Lender
- Getting (Pre) Approved for a Mortgage
- Making and Offer
- Making an Offer in Different Conditions
- From Contract to Closing the Deal
- Working on the Subject to Financing Condition
- Woking on the Subject to Home Inspection Condition
- Working on the Subject to Title Documentation Condition
Please review the previous chapters for more details in our Pfanntastic Home Buyer Handbook Series, and or contact Peter of Linda Pfann.
Whereas the chapter about title documents was a bit long and dry, Seller disclosure statement documents, are much easier to review and discuss.
In BC, the real estate industry uses a standard “Property Condition Disclosure Statement for All resale properties and a Builder/developer disclosure statement for newly built property that you are buying from the builder developer).
In this chapter we will only deal with the Property Condition Disclosure Statement (PCDS), and we will discuss the Builder/Developer disclosures in the chapter about new construction subject clauses later in our series.
Simply stated the intent and purpose of the PCDS, is for the seller to inform and disclose any and all known issues (as outlined in answering a number of specific questions) about the property at the time of the disclosure being recorded on the form.
Although this PCDS form is very useful in being able to identify disclosed and known issues, it is entirely possible that a seller is either not aware of an issue, and or neglects to make disclosure about it.
In fact there are sellers that will decline to make any disclosure all together, as they either do not know much if anything about the property or for their personal reasons do not want to make any disclosure at all.
In Real Estate there is an age old legal concept that is called “Caveat Emptor” which means “Let The Buyer Beware” this legal concept places the onus and responsibility on to the buyer to verify and confirm anything that may be important to them before they proceed.
And although the disclosure statement (PCDS) shifts some responsibility on to the seller and their representation of the property condition, it is our strong suggestion, that if it is important to you and how you will use and or enjoy (or not) the home you are about to buy, that you should do your own investigation and verification of any and all of the issues that are important to you.
A large number of the questions that are contained in the standard PCDS, will be covered by a typical licensed property inspector and as such will be confirmed easily.
It is important to verify issues that may have more to do with the past use and or concerns about the property, strata property issues, and or concerns about the neighborhood, municipal and or of a regional nature, can all affect your decisions. Peter and Linda Pfann will be able to guide you and or assist you in the right direction for the answers you are seeking.
Sometimes (although not often) we come across issues that really have nothing to do with the actual condition of the property or anything physical at least. It has happened that something in the history of the property has in one way or another affected its use, reputation and or perception (some good, some bad) and it may be important to you to find out more about.
We often chuckle about some of the questions on the PCDS, some of which deal with if the property was every used as a “Marijuana Grow Op”, however I can assure you that if the property was in fact used as such, that it is very important to know what if anything was done to rectify all the potential issues that may have impacted the property.
In summary about the benefits and for best uses for a Property condition disclosure statement as a buyer of a property.
We suggest the following steps;
- Carefully read and review any and all documentation (not just the PCDS).
- Note any questions you may have.
- Address any and all property mechanical and or structural concerns with the property inspector, before they do the inspection so that they can pay extra attention to your areas of concerns as they complete the inspection for you.
- Research, investigate, and collect any and all other areas of concern, together with your inspector, Peter and Linda Pfann, your lawyer and possibly a general contractor, and or accountant, we should be able to address and answer any questions and or concerns that you may have about any aspect arising from the Property Condition Disclosure Statement.
- Review all the information and decide:
- If you want to proceed with your purchase,
- What if anything needs further clarification and or correction.
- Who would be responsible for any correction or amendment in any aspect of your purchase agreement.
- If the seller is not agreeable with any changes what will you do, proceed with the contract or collapse the purchase agreement.
As mentioned before the concept of Caveat Emptor, (Let The Buyer Beware) although somewhat diminished by the use of the PCDS, still means that it is up to us (you the buyer and Peter and Linda Pfann as your agents) to make sure that you have satisfied yourself about all the issues that will make you a Pfanntasticly Happy Home Owner, for years to come.
Peter and Linda Pfann are here to assist, guide and consult with you to ensure that your best interest are protected, please contact us with any and all questions or concerns so that we be able to avoid any nasty surprises for you.
As always, if you have any questions, concerns or would like to explore your options, be sure to Talk To Peter or Linda Pfann, we will ensure that our 25+ years of client focused results will benefit you.
Visit our Website for additional resources www.pfanntastic.com