Selling a Home in Ontario: Understanding Legal Disclosure Obligations

Selling a home involves significant legal responsibility, particularly when it comes to disclosure. Many sellers are unaware that failing to disclose certain information can result in lawsuits even years after a sale has completed.

Patent and Latent Defects

Ontario law distinguishes between patent defects, which are visible upon reasonable inspection, and latent defects, which are hidden and not easily discoverable. While sellers are not required to point out every minor imperfection, they are legally obligated to disclose known latent defects that make a property unsafe or uninhabitable.

Risks of Non-Disclosure

Problems arise when sellers knowingly conceal issues such as recurring flooding, structural instability, or serious mould problems. Courts have held that a seller’s silence in these circumstances can amount to misrepresentation.

Seller Property Information Statements can further complicate matters. Although optional, these forms become legally significant if completed inaccurately. Statements that downplay or omit known problems can expose sellers to liability.

The Role of a Real Estate Lawyer

A real estate lawyer helps sellers navigate these obligations by advising what must be disclosed, reviewing documentation, and ensuring that the agreement contains appropriate protective language. Proper legal advice can significantly reduce the risk of post-closing disputes and litigation. Contact our real estate lawyers at Mills & Mills LLP to discuss your sale and protect your interests every step of the way.

At Mills & Mills LLP, our lawyers regularly help clients with a wide range of legal matters including business law, real estate law, estate law, employment law, health law, and tax law. For over 140 years, we have earned a reputation amongst our peers and clients for quality of service and breadth of knowledge. Contact us online or at (416) 863-0125. The material provided through the Mills & Mills LLP website is for general information purposes only. It is not intended to provide legal advice or opinions of any kind.