Posted on
July 24, 2025
by
Karli Fortin
As Realtors, we know trust is everything. And one of the sharpest tools in building that trust? Clear, honest, full disclosure.
Thatâs why youâll notice weâre now using updated BC real estate forms when buying or selling a property. This change isnât just paperwork for the sake of paperworkâit's the result of a powerful court ruling that reminded everyone in our industry whatâs at stake when disclosure is handled vaguely or incompletely.
Letâs break down what happened, whatâs changed, and how it protects youâwhether you're buying or selling.
What Sparked the Change: A Court Case That Cut Through the Grey Area
In Sewell v. Abadian (2025 BCCA 158), the seller provided a Property Disclosure Statement (PDS)âbut crossed out every question on the form (very common currently) and added a one-line note:
âTenanted property, owner has never occupied.â
That might seem like a safe move. But hereâs the kicker: the seller knew there was an unpermitted family room additionâand didnât disclose it.
The buyer found out after the deal went unconditional, with the deposit paid, and took it to court.
The BC Court of Appeal ruled that even a fully crossed-out PDS can still be a misrepresentation if a known defect is left out. The message was loud and clear:
Sellers have a duty to disclose material latent defectsâno matter what the form says.
So Whatâs New?
In response to this case, BCREA and BCFSA have released new forms and guidance:
Updated Property Disclosure Statement (PDS)
Reinforces the importance of accurate disclosure.
Adds a disclaimer noting that conditions may change after the date of signing. (These changes must be updated on the PDS.)
New âProperty No Disclosure Statementâ Form
Allows sellers to opt out of making disclosures altogether.
Comes with a caution: opting out may make your property harder to sell and increase the risk of legal action if a problem is discovered later.
New âRealtorâs Disclosure of Material Latent Defectsâ
This replaces the old Sellerâs Disclosure form.
It includes a seller acknowledgment giving the Realtor permission to disclose known material issues.
A Real Estate Agentâs Guide to Navigating These Changes
For Sellers:
Full and frank disclosure = trust = smoother sales.
Trying to hide behind a crossed-out form or refusing to complete the PDS? That strategy now carries risk of legal consequences.
If you're unsure, talk to your agent. Weâll help you navigate disclosure honestly and strategically.
For Buyers:
A âNo Disclosureâ form isnât neutralâitâs a red flag.
Youâll want to dig deeper: inspections, permits, Realtor questions, financing checks.
Weâll guide you through smart due diligence, so nothing catches you off guard after closing.
Why This Matters More Than Ever
This update isnât just legal housekeepingâit reflects a broader truth that aligns perfectly with my approach:
People donât buy houses. They buy clarity, safety, and peace of mind.
And those are built through communication and trustânot crossed-out forms.
If you're thinking of buying or selling in todayâs market, letâs have a chat about how these changes impact you, and how we can work together to protect your interests and move forward with confidence.
Want more clarity? Reach out anytime. Iâm here to bring calm, confidence, and strategy to your next move.
Warmly,
Karli Fortin
Realtor | Karli Ann Realty
RE/MAX Island Properties Cowichan Valley
