A buyer makes an offer on a detached house in Burnaby. The Seller's Property Disclosure Statement (PDS) indicates there are no known issues with the roof. After removing subjects, but before completion, heavy rain reveals a significant roof leak that the seller was genuinely unaware of at the time the PDS was completed. What is the most likely legal consequence?

Question: A buyer makes an offer on a detached house in Burnaby. The Seller's Property Disclosure Statement (PDS) indicates there are no known issues with the roof. After removing subjects, but before completion, heavy rain reveals a significant roof leak that the seller was genuinely unaware of at the time the PDS was completed. What is the most likely legal consequence?

Answer options:

• The buyer must complete the purchase as the PDS states 'no known issues,' and the leak was unknown to the seller. ✅ The seller is obligated to repair the roof or compensate the buyer, as the PDS is a representation that continues to operate until completion.
• The buyer can terminate the Contract of Purchase and Sale due to a material misrepresentation.
• The buyer would likely have to absorb the cost of repair, as it is a latent defect discovered after subject removal.

Correct answer: The seller is obligated to repair the roof or compensate the buyer, as the PDS is a representation that continues to operate until completion.

Explanation: A statement made in a PDS is considered a representation that continues to operate until the completion date. If a seller becomes aware of new information that renders a previous statement inaccurate, they have a duty to disclose it and/or rectify the issue under common law principles and good faith.