Bought a House With Hidden Defects in British Columbia: Your Options

You moved in, and then the walls, roof, basement or wiring revealed a serious problem nobody mentioned. It is natural to wonder whether the seller has to pay for it.

The answer depends on what kind of defect it is, what the seller knew, and what you can prove. This article explains the main ideas in British Columbia and the time limits to watch. It is general information, not a prediction of how your case will turn out.

This article covers the law of British Columbia.

Caveat emptor and the two kinds of defects

Caveat emptor means let the buyer beware. In BC it still applies to visible, or patent, defects, and buyers have a general duty to inspect. A cracked window or a stained ceiling you could see is usually your problem.

Hidden, or latent, defects are treated differently. Sellers must disclose known latent defects, which are defects a reasonable inspection would not reveal. There is no prescribed disclosure form in BC, and a Property Disclosure Statement completed by the seller is a common but voluntary way to disclose.

The role of real estate licensees

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 you received a Property No Disclosure Statement, that is a signal for the buyer to do further due diligence. Keep every document from the listing and the negotiation.

Evidence that matters

Your claim will usually turn on what the seller knew and whether the problem was truly hidden. Stop and document before repairs wipe out the proof, while taking any steps needed to prevent further damage.

• The contract of purchase and sale and any Property Disclosure Statement
• Your home inspection report and what it covered
• Listing materials, emails and texts with the seller or agents
• Photos and video of the defect before any repair
• A written opinion from a qualified inspector or contractor on cause and age
• Repair quotes and receipts
• Anything showing earlier repairs, claims or complaints

Evidence of earlier patching or painting over a problem can be important to show the seller knew. How strong it is depends on the facts, and a lawyer can assess it.

Remedies and time limits

How a dispute over a hidden defect ends varies from case to case. Some are settled by negotiation, and others go to a tribunal or court. Because sellers must disclose known latent defects, what the seller knew is often central. Which remedy is available depends on the facts, the contract wording and what the seller knew, and a lawyer should confirm it for your situation.

Time is critical. A court proceeding must generally not be started more than 2 years after the claim is discovered. A claim is discovered on the first day you knew or reasonably ought to have known of the loss, that an act or omission caused it, that it was the defendant's, and that a court proceeding was appropriate. A 15-year outer limit runs from the act or omission, not from when you found the defect. If the seller wilfully concealed the loss or its cause, the act is treated as occurring on the discovery day, which can extend that 15-year period.

If a person acknowledges liability before a limitation period expires, the claim is treated as not discovered before the day of the acknowledgment, and the acknowledgment generally must be in writing, signed, and made to the claimant or their agent. Another enactment may set its own period, so check. If your claim is small, a claim of up to $5,000 can go to the Civil Resolution Tribunal.

What to do next

• Note the date you discovered the problem; the 2-year clock may start then.
• Photograph and document before repairing.
• Get a written inspection or contractor report.
• Collect all sale documents and communications.
• Tell your insurer and, if relevant, any warranty provider.
• Speak to a lawyer before sending a demand or doing major repairs.

Frequently asked questions