🔍 Buyers & Sellers Take Note: Major Updates to BC Real Estate Disclosure Rules You Need to Know

As of July 24, 2025, the BC Financial Services Authority (BCFSA) has released important updates affecting how property information and defects must be disclosed in real estate transactions. Whether you're buying, selling, or advising clients, these changes could impact the way deals are structured, negotiated, and protected from future legal complications.

🧠 Why These Changes Matter

The updates were triggered by a BC Court of Appeal decision in Sewell vs. Abadian, prompting the British Columbia Real Estate Association (BCREA) to revise key disclosure forms. In turn, BCFSA updated its guidelines to promote greater transparency and reduce post-transaction disputes.

📋 What's New in Disclosure?

1. Revised Property Disclosure Statement (PDS)

   • Licensees are strongly encouraged to have sellers complete this form accurately and in full.

   • It now includes a disclaimer stating that information is accurate as of the date completed and may not reflect current conditions.

   • Blank or incomplete forms can carry risks for sellers and create suspicion among buyers.

2. NEW: “Property No Disclosure Statement”

   • Gives sellers the option to disclose nothing—but this comes with risks.

   • Buyers should view this as a red flag and conduct additional inspections or due diligence.

3. NEW: “Realtor’s Disclosure of Material Latent Defects”

   • Replaces the old “Seller’s Disclosure” version.

   • Includes a seller acknowledgement confirming they understand the licensee's disclosure obligations.

   • Authorizes the licensee to disclose material latent defects, even if the seller is unwilling to share information themselves.

👀 What Buyers & Sellers Should Know

🏠 For Sellers:

• Complete the PDS honestly and fully—it improves your property's credibility and marketability.

• Avoiding disclosure or choosing the “No Disclosure” form may scare off buyers or expose you to legal claims after closing.

• Remember: even without a form, you have a common law duty to disclose latent defects.

🔍 For Buyers:

• A “No Disclosure” form should raise questions. It doesn’t always mean there’s a problem—but it does mean you need to dig deeper.

• Consider making a completed PDS a condition in your offer.

• Check with your lender—some may not approve financing if full disclosure isn’t provided.

🤝 What Real Estate Professionals Need to Do

• Encourage sellers to fully complete the PDS wherever possible.

• Review the new forms and educate your clients on the implications of using or not using them.

• Ensure your buyers understand their rights, risks, and what additional steps to take when disclosures are limited.

📌 Final Thoughts

Disclosure is not just a legal box to tick—it’s a key piece of building trust, avoiding disputes, and ensuring a smooth transaction. These changes from BCREA and BCFSA underscore the importance of clear communication and professional guidance in every step of the real estate journey.

🔔 Have questions about how these changes could impact your home sale or purchase? I’m here to help you navigate with confidence. Let’s talk.

✨ Tara Kennedy
🏡 REALTOR®, ABR, RENE, SRS
📞 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com

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