Issues with the pre-contract disclosure statement (PCDS)

A buyer can delay settlement or cancel an agreement if the PCDS is late, incomplete, inaccurate or not provided. Depending on the situation, a buyer can choose to cancel the agreement or delay settlement. Certain time frames and requirements apply.

Delaying settlement if the statement is provided late

If the seller provides an accurate and complete PCDS, but it is later than 5 working days before settlement, the buyer can give notice to delay the settlement date until 5 working days after the PCDS was provided to them.

Delaying settlement if the statement is not provided, incomplete or inaccurate

If the seller does not provide a PCDS, or they provide a statement that is incomplete or inaccurate, the buyer can give notice to delay the settlement date until 5 working days after the seller does provide a complete and accurate PCDS.

Ability for a second delay

If another incomplete or inaccurate statement is provided, or the owner does not provide a statement within 5 working days of receiving the notice from the buyer, then the buyer can give a second notice to delay the settlement date.

If another PCDS is provided but is incomplete or inaccurate

The buyer must provide the second notice to delay within 5 working days of receiving the incomplete or inaccurate statement.

If the PCDS is not provided at all

The buyer must provide the second notice to delay within 5 working days before the date of when PCDS should have been provided.

Decision after a second delay

If another incomplete or inaccurate statement is provided, or no statement is provided at all, then within 5 working days of the second notice to delay, the buyer must decide if they want to cancel the agreement, unless the buyer and seller agree on something else.

If the buyer wants to proceed with the sale

If the buyer does not cancel the agreement, settlement will be 5 working days from the date the buyer advises they want to proceed with the sale and purchase.

The buyer and seller can agree to a different settlement date.

If the buyer does not want to proceed with the sale

The buyer can cancel the agreement instead of delaying it if:

• the owner did not provide a PCDS before the sale and purchase agreement was signed, or
• the owner provided a PCDS that was late, incomplete or inaccurate.

Restrictions on the ability to cancel

If there was no PCDS provided before the sale and purchase agreement was signed, the buyer can cancel the contract without any restrictions.

If an incomplete or inaccurate PCDS was provided, the buyer cannot cancel if any of the following situations apply:

• The seller identified the missing or incorrect information in the disclosure statement and explained that it either does not exist or could not be found despite reasonable efforts.
• The owner provides the missing or corrected information before the buyer gives notice to cancel the contract.
• The incomplete or inaccurate information would not significantly affect the buyer.

If you are unsure of your options, get independent legal advice.

1. The buyer must notify the owner in writing if they intend to cancel the sale. Once the notice is given, the owner has 10 working days to provide a complete and accurate PCDS.
2. After those 10 working days, the buyer has 5 working days to decide whether to cancel the agreement or continue with the purchase — even if the owner provides the correct disclosure statement within 10 working days.

Issues with the pre-settlement disclosure statement (PSDS)

Delaying settlement if the PSDS is late

If a PSDS is provided late (within 5 working days of settlement), the buyer can delay settlement until 5 working days after the seller provides a complete and accurate PSDS.

Delaying settlement if there is no statement or other issues

If no PSDS is provided, or an incomplete or inaccurate PSDS is provided by the close of business the day before settlement, then the buyer can delay the settlement date until 5 working days after the seller provides a complete and accurate PSDS.

Cancelling the agreement

The buyer can cancel the agreement if:

• the owner has not provided a complete and accurate PSDS 5 working days before settlement, and
• the buyer chooses not to delay settlement.

Process for cancellation

The buyer must give the owner notice in writing that they intend to cancel the agreement. The owner has 10 working days from the date this notice is given, to provide the PSDS.

If the owner has not fully complied with their pre-settlement disclosure obligations after 10 working days, the buyer must decide if they want to cancel the agreement or not. The buyer has 5 working days to make this decision.

Restriction on the ability to cancel

If the owner complies with their pre-settlement disclosure obligations within 10 working days, the buyer cannot cancel the sale and purchase agreement.