Which statement about PDS is true?

• A. It protects the seller
• B. It provides protection to the listing broker
• C. It protects the buyer by disclosure of known defects
• D. It provides no protection to either party

Answer: (C)

Property Disclosure Statement is a disclosure form used in real estate to reveal known defects and issues about the property. Its main purpose is to inform the buyer so they can make an informed decision and assess risks before proceeding. It helps reduce the chance of later claims that the seller hid problems, since the buyer is getting information the seller already knows. It’s not a warranty and it doesn’t guarantee that the seller or the listing broker are protected, nor does it mean there’s no risk if something wasn’t disclosed or discovered later. Because of this, the statement that the PDS protects the buyer by disclosure of known defects is the correct interpretation.