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Under Canadian law, individuals selling real estate are legally obligated to disclose to buyers. These legal disclosures are critical as they help to protect buyers and their investments.
On this account, buyers and sellers must understand the various requirements of real estate disclosures. Real estate disclosures ensure that a buyer has an accurate representation of what they are purchasing.
Sadly, however, sellers often try to hide known defects or other aspects of their property to increase their profits. However, this is strictly forbidden under Canadian law and can lead to severe consequences for the seller if it is discovered they did not comply with the law.
If you would like to learn more about Canadian real estate disclosure requirements, contact our law firm and ask to schedule a consultation with one of our knowledgeable lawyers who can answer your questions.
What Are Common Examples of Real Estate Disclosures?
A seller must legally disclose information to a potential buyer based on their knowledge of the property. Some of the most common real estate disclosures include:
- Structural or mechanical issues
- Natural or environmental hazards
- Any history or evidence of asbestos.
- Any history or evidence of lead-based paint in a structure.
- Property line disputes.
- Any other information regarding the property that may be relevant.
- Nearby construction or development.
However, real estate disclosure agreements also work to protect sellers as it allows them to reveal information to the buyer to safeguard them from future legal action.
Whether you are buying or selling property, it is always best to consult an experienced real estate lawyer who can provide more information about what must be disclosed and how it may affect a transaction.
What Happens if a Seller Fails to Disclose Information in a Real Estate Transaction?
If it is determined that a seller failed to provide the buyer with necessary legal disclosures, the purchaser may be entitled to sue for damages. In most instances, the buyer may be able to recover damages such as:
- The cost of repairs.
- Cost of loss of property value.
- Legal expenses.
However, it should be stated that if a buyer fails to act with due diligence before purchasing a property, they could be held liable for other issues later. For example, if a buyer purchases property only to find later there are environmental considerations, they could be forced to pay for expensive land remediation.
Therefore, if you are considering selling or purchasing real estate, you must hire a knowledgeable lawyer to assist you with the sale to ensure you avoid legal issues later.
How Can I Be Sure All Real Estate Disclosures Are Met Before Buying a Property?
As with any legal issue, it is always in the buyer or seller’s best interest to hire a lawyer to assist you with a real estate transaction. One of the most essential actions that any party involved in the transaction can do is provide all relevant information to the other side.
A home inspection is another common and beneficial tool buyers should always take advantage of. A thorough home inspector can detect defects that may not be obvious to the untrained eye. In addition, some buyers go even further and call-in professionals who can give even more detailed information about a structure or other defects or hazards.
However, finding every problem in a home or structure can be an impossible task. As a result, property disclosure laws are in place to ensure that sellers are truthful in their statements to potential buyers.
What Are the Benefits of Hiring an Experienced Real Estate Lawyer?
One of the most vital services real estate lawyers provide clients is ensuring their legal rights are protected. Although most sellers act with honesty and integrity, many others are unscrupulous and try to profit from unsuspecting buyers.
However, with the help of a skilled real estate lawyer, all parties involved in a real estate transaction can protect their financial interests and feel confident about the future.
If you are considering buying or selling real estate, you must have a highly trained lawyer on your side who acts as your legal ally and answers any questions or concerns. Contact the Calgary real estate lawyers of JK Law at 587-742-2136 to schedule a consultation.
