Can a Buyer Walk Away if the Property Condition Differs From What Was Disclosed in Ontario?
Not automatically. Ontario follows buyer beware, so whether you can walk away over a property's condition depends on what kind of defect it is, what the seller said or hid, and what your Agreement of Purchase and Sale says.
A seller generally need not disclose patent defects, which a buyer can find through reasonable inspection and inquiry. A seller must disclose latent defects that make the property unfit for habitation, dangerous or potentially dangerous. These duties come from case law, not TRESA. Exception: a seller who conceals a patent defect can lose the protection of buyer beware, failing to disclose a latent defect may be treated as misrepresenting the property, and wilful blindness can also create liability.
A seller property information statement is not a required form, and it is based on the seller's own knowledge and experience. If the seller has prepared one, the seller's agent must tell every interested buyer it exists and give a copy to any buyer who asks. Keep the statement, your inspection report and your photos. Because remedies and deadlines turn on the facts and the wording of your agreement, speak to a lawyer promptly, ideally before closing.
Key takeaways
- Ontario follows buyer beware, so a seller generally need not disclose patent defects that a buyer can find through reasonable inspection and inquiry.
- A seller must disclose latent defects that make the property unfit for habitation, dangerous or potentially dangerous.
- A seller who conceals a patent defect can lose the protection of buyer beware, and failing to disclose a latent defect may be treated as misrepresentation.
- A seller property information statement is not a required form, but if one exists the seller's agent must tell interested buyers and give a copy to any buyer who asks.