In Alberta, the seller of a residential property has a legal obligation to disclose all known material defects to potential buyers. Material defects refer to any physical or legal issues with the property that could significantly affect the value or desirability of the property, or pose a health or safety risk to the occupants. Examples of material defects include a leaky roof, a cracked foundation, or the presence of hazardous materials like asbestos or mold.
The disclosure must be made before the buyer makes an offer to purchase the property, so that the buyer can make an informed decision about whether to proceed with the purchase or negotiate for a lower price based on the disclosed defects. The disclosure should be made in writing, using the standardized Disclosre of Defects form, which is commonly used in Alberta.
It is important to note that the obligation to disclose applies only to known defects. If the seller is not aware of a defect, they cannot be held responsible for not disclosing it. However, if the buyer later discovers a defect that the seller should have known about, the seller may still be held liable for damages.