Seller Disclosure Obligations When Selling Your Home in Ontario

You've accepted an offer and the finish line looks close — then the buyer's lawyer sends a list of questions about the property's history. What are you actually required to tell a buyer? What happens if you stay quiet about something you know? Seller disclosure obligations in Ontario are not always intuitive, and getting them wrong can expose you to a lawsuit long after you've moved on.

This guide walks through what Ontario law requires sellers to disclose, the risks around the Seller Property Information Statement, and the difference between defects you must disclose and those a buyer is expected to find on their own.

The Core Legal Duty: No Misrepresentation

Ontario does not have a single statute that lists every item a seller must proactively volunteer. Instead, the obligation comes from two overlapping sources:

1. The common law duty not to misrepresent. If you make a statement — in writing, verbally, or through your agent — it must be honest. Fraudulent or negligent misrepresentation can give a buyer grounds to rescind the deal or claim damages even after closing.
2. The duty to disclose known latent defects. A seller who knows about a hidden defect that makes a property dangerous or uninhabitable must disclose it, regardless of what the contract says. This duty exists because the buyer cannot reasonably discover the problem through ordinary inspection.

What sellers generally do not have is a sweeping obligation to volunteer every imperfection. Ontario still follows the caveat emptor (buyer beware) doctrine for patent defects — things a buyer or their inspector could reasonably find during a normal viewing or inspection. But the exceptions to caveat emptor are significant enough that silence is rarely truly safe.

What Are "Material Facts"?

Under Ontario's real estate regulatory framework, agents are required to disclose material facts — information that would influence a reasonable buyer's decision to purchase or the price they would pay. Sellers acting through a registered agent are bound by this requirement indirectly, because their agent cannot knowingly conceal or misrepresent material facts.

Examples of material facts courts and regulators have recognized include:

• Structural problems (foundation cracks, roof condition)
• Water infiltration history, even if remediated
• Known mould or moisture issues
• Deaths on the property, in certain circumstances (see stigmatized properties below)
• Zoning violations or unpermitted work
• Ongoing disputes with neighbours over boundaries or shared infrastructure
• Environmental contamination on or affecting the property

The list is not exhaustive. When in doubt, a useful test is: if I were buying this property, would I want to know this? If the answer is yes and you are aware of it, disclosure is the safer path.

The Seller Property Information Statement (SPIS): Useful Tool or Liability Trap?

The SPIS is a voluntary form — no Ontario law requires sellers to complete one. However, once completed and provided to a buyer, every answer on it becomes a statement you are responsible for.

Why sellers complete an SPIS

Real estate agents often recommend the SPIS as a way to demonstrate transparency and head off buyer questions. A thorough, accurate SPIS can smooth negotiations and reduce post-closing complaints.

The risks of getting it wrong

Because the SPIS is voluntary, an incomplete or inaccurate SPIS can actually increase your legal exposure. If you check "no" to a water damage question when you know there was a leak five years ago, you have made an affirmative misrepresentation — worse than if you had said nothing at all.

Practical guidance for sellers completing an SPIS:

• Answer only what you personally know. Do not guess.
• If you are uncertain, note your uncertainty in writing rather than defaulting to "no."
• Disclose repairs and their history, not just current condition.
• Have your lawyer review the completed form before it goes to buyers.
• Never let your agent complete the SPIS on your behalf without your careful review.

Patent vs. Latent Defects: The Distinction That Matters

Patent defects

A patent defect is one that is visible or discoverable through a reasonable inspection. A buyer who skips a home inspection takes the risk of patent defects on themselves. Examples: peeling paint, an aging furnace, worn flooring, a cracked window.

Sellers have no obligation to point out patent defects, though misrepresenting them remains prohibited.

Latent defects

A latent defect is hidden — not discoverable even by a careful inspector exercising reasonable diligence. Examples: a concealed foundation crack behind finished drywall, historic flooding that left no visible trace, buried oil tanks, or asbestos concealed within walls.

Ontario sellers must disclose known latent defects, especially those that:

• Render the property dangerous to occupants, or
• Make the property unfit for habitation

Trying to hide a known latent defect — through concealment, cosmetic repairs designed to obscure rather than fix, or deliberate silence — can lead to claims of fraudulent concealment, which carry the heaviest consequences.

Stigmatized Properties

Ontario has no statute requiring sellers to disclose that a death, crime, or other stigmatizing event occurred on a property. However, if a buyer asks directly, lying in response is misrepresentation.

Whether a particular history qualifies as a material fact requiring proactive disclosure is unsettled and fact-specific. If your property has a history that a reasonable buyer might consider significant, discuss it candidly with your lawyer before listing.

Consequences of Non-Disclosure

If a buyer discovers after closing that you knew about a problem and failed to disclose it, their options include:

• Rescission — unwinding the transaction and seeking a return of the purchase price
• Damages — compensation for the cost of repairs or loss in value
• Fraud claims — in cases of deliberate concealment, courts can award additional damages

These claims can arise years after closing if the defect only surfaces later and the buyer can show you knew about it. Errors and omissions insurance covers your real estate agent, not you personally.

Frequently asked questions