What happens if the resale disclosure document reveals a problem my buyer didn't know about?

Where a disclosure document is required and is provided, and it reveals something material the buyer wasn't previously aware of, the buyer generally has the benefit of having received that information before finalizing the deal — which is exactly the protective purpose the Arthur Wishart Act's disclosure requirement is designed to serve. Depending on the timing and the terms of the purchase agreement, the buyer may still be free to walk away, renegotiate, or proceed with fuller knowledge, rather than being locked into a deal signed before the issue was known.

If the disclosure is given late, or is materially deficient in a way that fails to properly convey the problem, the buyer may separately have rescission rights under the Act tied to that specific failure, distinct from whatever the purchase agreement itself allows.

As a seller, surfacing problems accurately through disclosure — even uncomfortable ones — is generally safer than having them surface only after closing, since incomplete or misleading disclosure creates its own separate exposure. A Treadstone business lawyer can help manage disclosure honestly and structure the deal around what it reveals.