Bought a Home With Hidden Defects in British Columbia? Your Options

Discovering water damage, a failing foundation or a hidden safety problem after you have moved in is upsetting. The first questions are usually whether the seller should have told you and what you can do about it.

This article explains how British Columbia treats visible and hidden defects, what sellers and real estate licensees must disclose, and the time limits that can affect any claim. What you can recover depends on the facts, so it is a starting point for a conversation with a lawyer.

This article covers the law of British Columbia.

Visible defects and hidden defects are treated differently

Caveat emptor, meaning let the buyer beware, still applies to visible (patent) defects, and buyers have a general duty to inspect. A problem you could have seen on a reasonable look is generally your risk.

A latent defect is different. It is a defect a reasonable inspection would not reveal, and sellers must disclose known latent defects.

What disclosure looks like in practice

There is no prescribed disclosure form in British Columbia. A Property Disclosure Statement completed by the seller is a common but voluntary way to disclose.

Real estate licensees must disclose material latent defects in writing, before an agreement is reached, and cannot contract out of that obligation by a clause in the contract of purchase and sale. If a seller supplied a Property No Disclosure Statement, that was a signal for the buyer to do further due diligence. Keep your copy of whatever you received.

Time limits that can affect a claim

A court proceeding generally must not be started more than 2 years after the day the claim is discovered. A claim is discovered on the first day you knew or reasonably ought to have known that loss occurred, that an act or omission caused it, that it was the defendant's, and that a court proceeding would be an appropriate means to seek a remedy.

There is also a 15-year limit that runs from the act or omission, not from when the buyer found the defect. If a seller wilfully conceals the loss or its cause, the act or omission is treated as occurring on the discovery day, which can extend that 15-year period.

If someone acknowledges liability before a limitation period expires, the claim is treated as not discovered before the day of the acknowledgment. Generally the acknowledgment must be in writing, signed, and made to the claimant or their agent. Other enactments may set their own periods, so confirm which rules apply to you.

What claims might be available

The claims open to you depend on what the seller knew, what was said or left unsaid, what was in the contract, and what a reasonable inspection would have found. Because these questions are fact-heavy, a lawyer can review your documents and explain the realistic options.

For a smaller repair bill, the Civil Resolution Tribunal can take small claims up to $5,000. Larger claims go to Provincial Court (Small Claims) or Supreme Court.

What to do next

• Stop and document the problem with photos, video and dated notes before any repairs that destroy evidence, where it is safe to do so.
• Get a written inspection or repair assessment explaining the cause and whether it would have been visible.
• Gather the contract of purchase and sale, any Property Disclosure Statement, the listing, your own inspection report and emails with the seller or licensees.
• Write down when you first learned of the loss, what caused it, and whose act or omission it was, because the 2-year period runs from the day you knew or reasonably ought to have known all of these and that a court proceeding was appropriate.
• Tell your insurer if relevant, and speak with a lawyer promptly about how the time limits apply to your situation.

Frequently asked questions