Do I Have to Disclose Problems With My House When Selling in Ontario?

Caveat emptor, or buyer beware, is the default rule in Ontario, but it does not let you hide a defect. Where the contract leaves a risk with the buyer, a court will not shift it to the seller, yet sellers can be liable for hiding defects.

In one Court of Appeal for Ontario case, the trial judge found sellers liable for non-disclosure and concealment of water damage, with liability split 70% to the agents and 30% to the sellers, a finding that was not appealed. That is why known leaks or past repairs are worth raising with your lawyer before you list. Whether a particular problem must be disclosed depends on the facts, so get advice on your situation.

Buyers are advised to get their own inspection even if the seller has one. A seller property information statement is optional, though if you prepare one your agent must tell every interested buyer it exists. A buyer generally has two years from the day the claim was discovered to sue, and the 15-year outer limit may not run while a defendant wilfully conceals the injury or its cause.