Selling a Home in Nova Scotia: Property Condition Disclosure Statement

When you list a home, your agent may hand you a Property Condition Disclosure Statement, often called a PCDS, and ask you to fill it in. It looks like a simple checklist, but buyers may rely on it when they decide whether to make an offer.

This article explains in general terms what the form is for, how to approach it honestly, and why wrong answers can cause trouble later. It does not replace advice on your own sale.

This article covers the law of Nova Scotia.

What the statement is

A Property Condition Disclosure Statement is a form in which a seller answers questions about the home. Typical subjects include the roof, basement and water, heating, plumbing and electrical systems, the well and septic system if there is one, insurance claims, renovations and any known defects.

It is a statement of what you know. It is not an inspection and it does not promise that the home is free of problems. Buyers are generally still expected to look at the property and often arrange their own inspection.

Is it required?

Many sellers assume the form is mandatory, but whether you have to complete it can depend on your listing agreement, your brokerage's practices and the terms of the sale. How this applies to you depends on your situation, so it is worth confirming with a lawyer. Because this varies, ask your agent where the request comes from and have a lawyer confirm what applies to you before you sign anything.

Even where completing it is optional, think about what leaving it blank signals. A buyer may ask more questions, request a stronger inspection condition or lower their offer. Completing it carefully can help move things along, as long as every answer is true.

Why wrong answers are a risk

If a buyer later finds a problem, one of the first things they or their lawyer may do is compare it with what the statement said. An answer that was wrong, or a problem you knew about and did not mention, can lead to a dispute after closing. How serious it becomes depends on the facts, including what you knew, what the buyer could have discovered, and what the agreement says.

• Do not say "no" to a question if you are not sure. Say you do not know, or explain what you do know.
• Do not leave out a past leak, repair or insurance claim because it was fixed. Describe what happened and what was done.
• Do not guess at things you have no way to know, such as the condition of wiring behind a wall.
• Do not rely on what a previous owner told you without saying so.
• Do not change answers to make the home look better.

Honest answers protect you as much as the buyer. A clear record of what you disclosed and when is far easier to stand behind than a vague or optimistic one.

Preparing your answers

Set aside some time and gather what you have. Receipts for repairs, contractor invoices, permits, past inspection reports and insurance paperwork all help you answer accurately and show your answers were made in good faith.

• Walk through the house, basement, attic, crawl space and outbuildings, noting anything you know is wrong or has been repaired.
• Pull together repair invoices, permits and warranties for work done during your ownership.
• Check your insurance history for past claims, such as water damage.
• Write down the age of major items such as the roof, furnace and windows if you know it, and say if you do not.
• Ask your agent to explain any question you do not understand.
• Keep a copy of the signed form and anything you gave the buyer with it.

If you are selling a condominium unit, the buyer has separate documents to review. The province advises condo buyers to get the declaration, bylaws, common elements rules, reserve fund status certificate and audited financial statements before buying, and for a resale unit to make the offer conditional on receiving an estoppel certificate. Your statement about the unit's condition sits alongside those documents. It does not replace them.

What to do next

Before you sign the form, have your lawyer review it together with your listing agreement and any offer, especially if you know of an unresolved problem, if you inherited the property or if you have never lived in it. The province also advises having a lawyer review an agreement before you sign.

If something comes up after you complete the statement and before closing, such as a new leak or a failed inspection, tell your agent and your lawyer promptly so the buyer can be updated properly. Questions about what you may owe a buyer after closing depend on the facts and should go to a lawyer.

Frequently asked questions