What is the effect of a disclosure statement stating that the vendor is not aware of specific deficiencies?

British Columbia, Canada


The following excerpt is from Baynham v. Terry, 2003 BCSC 422 (CanLII):

The relevant Disclosure Statements assure that the vendor is not aware of specific deficiencies, in this case, roof leakage, structural problems, or problems with the septic system. The effect of this form of assurance was commented on by Boyle, J. in Arsenault v. Pederson 26 April 1996, New Westminster S021575 BCSC, I have no idea who drafted these questions (the disclosure statement) but they clearly are drawn in a manner offering more protection for a vendor than to a purchaser and in a manner to provide a sales person or vendor with an air of rectitude which might not on all occasions be deserved – even given the cautionary line: “Buyers are urged to carefully inspect the property and, if desired, to have the property inspected by an inspection service of their choice”. The Disclosure Statement does not call upon a vendor to warrant a certain state of affairs. It requires the vendor to say no more than that he or she is or is not aware of problems.

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