Property transactions involve a significant exchange of information between the buyer and the seller. One of the critical aspects of this exchange is the seller’s disclosure, a key component of real estate law and transactions throughout Canada, including in Calgary, Alberta. Disclosure requirements can significantly shape property transactions, affecting everything from the sale price to the buyer’s willingness to proceed with the purchase. This article will explore real estate disclosure requirements and how they impact property transactions in Calgary.

Understanding Disclosure Requirements

Disclosure requirements in real estate refer to the seller’s obligation to inform the buyer of known defects or issues with the property. These could range from structural problems to past incidents such as flooding, or even disputes related to property boundaries. Failure to disclose such information can lead to legal issues post-sale, including lawsuits for damages.

In Alberta, the seller’s duty to disclose is guided by the principle of caveat emptor, or “buyer beware.” It means that, while sellers can’t lie about the condition of their property or purposefully hide defects, they aren’t legally required to disclose every single defect. However, there are exceptions, particularly for latent (hidden) defects that make a property dangerous or unfit for habitation.

Impact on Property Transactions

The disclosure requirements have a significant impact on how property transactions are carried out in Calgary. Here are some of the ways they shape these transactions:

Informing Buyer Decisions

Firstly, disclosure documents provide essential information that informs a buyer’s decision to purchase a property. They detail any existing problems or defects that the buyer should be aware of, allowing them to make an informed decision about the purchase. For example, if a property has a history of basement flooding, a buyer may choose to avoid the purchase or negotiate for a lower price to account for necessary repairs.

Shaping Negotiations

Disclosure documents often shape the negotiation process between the buyer and seller. If a property has significant disclosed defects, a buyer may use this information to negotiate a lower sale price or to request that the seller address the issues before finalizing the sale. Conversely, a property with few or minor disclosed defects may attract a higher sale price.

Avoiding Future Legal Disputes

By fulfilling disclosure requirements, sellers can protect themselves from potential future legal disputes. If a buyer discovers a significant defect after the purchase, which they can prove was known to the seller but not disclosed, they may be able to sue the seller for misrepresentation or failure to disclose.

Establishing Trust

Fulfilling disclosure requirements helps establish trust between the buyer and seller. A comprehensive, honest disclosure document indicates that the seller is not trying to hide any problems or take advantage of the buyer, which can foster a more positive transaction process.

Real Estate Professionals and Disclosure

Real estate professionals, such as real estate agents and lawyers, play an essential role in managing disclosure requirements. A real estate agent can guide the seller in understanding what needs to be disclosed, while a real estate lawyer can ensure that the disclosure document is legally sound and fulfills all necessary requirements.


In conclusion, real estate disclosure requirements play a vital role in shaping property transactions in Calgary, Alberta. They ensure that buyers have the information they need to make informed decisions and that sellers fulfill their legal and ethical obligations. Both buyers and sellers should engage the services of experienced real estate professionals to ensure that disclosure documents are correctly handled, promoting smooth and legally sound property transactions.