The Property Disclosure Statement (PDS) is a legally binding document where the seller discloses any known defects or issues with the property. This can include problems such as past water damage (repaired or not), structural issues, un-permitted renovations or repairs, and any non-compliance with building codes. The PDS provides transparency to the buyer, ensuring they are aware of any concerns before proceeding with the transaction. However, it’s important to note that sellers are only required to disclose what they are aware of. A thorough review of the PDS, combined with a home inspection, helps protect the buyer from unpleasant surprises after the purchase.
For strata properties, such as condos or townhomes, reviewing the strata documents is an extremely critical step in the home buying process. This includes reviewing bylaws, financial statements, meeting minutes, and the strata’s contingency fund (think of this as the savings account) to assess the building’s management, financial health, and any upcoming special assessments. The review also reveals whether there are restrictions on things like age, rentals or pets, which could impact the buyer’s plans. It gives the buyer a comprehensive view of the property’s shared responsibilities and helps them understand if the strata is well-run and whether there are any potential risks, like significant upcoming maintenance costs or legal disputes. This may seem overwhelming but as your trusted realtor, I read these documents (as well as you) and provide input.
