What is the effect of a property condition disclosure statement in a purchase and sale agreement?

Although the property condition disclosure statement forms part of the agreement for a purchase and sale, it is not necessarily a warranty. Its main purpose is to put purchasers on notice with respect to known problems. The disclosure statement would have to be far more detailed if it was meant to do more. It merely indicates that the statements therein are true according to the seller’s “current actual knowledge.” It should be noted in this context that the disclosure statement has the following clauses just above the purchasers’ signatures: The prudent buyers will use this disclosure statement as the starting point for their own enquiries. The buyers are urged to carefully inspect the property and, if desired, to have the property inspected by an inspection service of their choice. As Boyle J. said in Arsenault v. Pedersen (26 April 1996), New Westminster S021575 (B.C.S.C.) at para. 12: 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 she or he is or is not aware of problems.