Before You Fall for an East Hill Character Home: History, Disclosure and Who's on Your Side
Quick answer: Known material latent defects must be disclosed to you in writing, but a home's history usually stays unsaid unless you ask, so ask specifically. The professional on the For Sale sign works for the seller, and anyone representing you must disclose in writing how their brokerage is being paid by others.
If you're drawn to East Hill's older homes, you're probably curious about their stories, too.
Some of a house's story will be handed to you in writing. Some of it only comes out if you ask the right person the right question. Here's how that works in BC, so you can go into a viewing knowing what to expect.
The part that has to be in writing
Known material latent defects must be disclosed to you in writing, usually through the seller's side of the deal. That's a problem you couldn't reasonably find on an ordinary inspection, typically one that could put occupants at risk or would cost a lot to repair. For real estate professionals, BCFSA's definition also includes missing building or other permits that a local government requires, which is worth keeping in mind with homes that have been renovated more than once. Problems in plain sight, such as a broken window, are yours to notice.
A seller can only disclose what they know, so your own inspection still matters. The older-home viewing checklist covers what to look at room by room.
The part that stays unsaid unless you ask
Events in a home's past, such as a death that happened there, are a stigma rather than a defect. BCFSA says there's no legal requirement to disclose a stigma, so it usually won't come up unless you ask.
When you do ask, the seller may decline to answer, but if they answer, it has to be true. A seller's professional who has been instructed not to disclose a stigma must say they can't answer. In Wang v. Shao, 2019 BCCA 130, BC's Court of Appeal decided that asking why the owner was selling wasn't specific enough to require disclosure of a fatal shooting just outside the home. The lesson: name the thing you care about. BCFSA also notes that if a seller won't answer, that alone can be a warning flag.
For the architectural side of a home's history, the guide on spotting a heritage home is a good next read.
Who works for whom
The professional on the For Sale sign acts for the seller. General questions about the home are fine, but before talking about your budget or motivation they must give you two BCFSA forms: the Disclosure of Representation in Trading Services and the Disclosure of Risks to Unrepresented Parties. If you go ahead without a professional of your own, they can share facts and prepare a contract as you direct, but they can't advise you on it, and what you tell them may be used for the seller's benefit.
With your own professional, the Disclosure of Representation in Trading Services confirms you're a client. Clients are owed fiduciary duties, and the form explains how to complain if something goes wrong.
Following the money
Your own professional must tell you in writing about any payment their brokerage receives from someone other than you, referral fees included. If the professional is buying or selling the property, or acting for their spouse or a company in which they or their spouse hold at least 5%, you'll be given a Disclosure of Interest in Trade before you enter into any agreement in the deal.
The trade-offs of asking a lot of questions
What you gain
- Fewer surprises after you move in.
- Specific questions are harder to sidestep, and you can confirm any answer you get by email or text.
- You decide with more of the picture, not less.
What it costs
- Time, which can feel scarce when a home is getting attention.
- Some answers may be uncomfortable, and a seller can decline to answer at all.
A short list to bring to a viewing
- Ask the seller's side: are there any known material latent defects, and have they been disclosed in writing?
- Ask the seller's side: what major work has been done, when, and was it permitted?
- Ask the seller's side about the specific parts of the home's history that matter to you.
- Ask your own professional: is anyone being paid a referral fee or other amount connected to my purchase?
- Ask yourself: do I need a lawyer's view before I sign?
Where this leaves you
Older homes reward curiosity. Ask early, ask specifically, keep copies of everything you receive, and know who you're talking to before you share anything you'd rather keep to yourself.
Related answers: will the seller tell me about a home's past?, who the agent on the sign works for and how real estate professionals are paid.
General information only, not legal advice. For your own situation, speak with a lawyer.
Looking at an older home in East Hill and want help asking the right questions? Call Tim Jones, REALTOR® with Coldwell Banker Executives Realty, at 250-550-6979. The East Hill buying guide walks through the rest of the process.
Featured photo: stock image from Unsplash, for illustration.
