Seller Property Information Statements in Ontario: Do They Protect You?

Many Ontario buyers are handed a questionnaire about the home's age, repairs, leaks and renovations. Sellers often wonder whether they have to fill it out, and buyers wonder how far they can rely on it.

This article explains what the statement is, whether it is mandatory, how it fits with the seller's disclosure duties, and what to do if you later find the answers were wrong. Every case turns on its facts, so treat this as general information.

What the statement is and whether it is mandatory

A seller property information statement is not a required form. A seller's agent may ask the seller to complete one, and it is based on the seller's own knowledge and experience. It is not an inspection report and does not replace one.

If a seller has prepared an information statement for buyers, the seller's agent must tell every interested buyer that it exists, and must give a copy to any buyer who asks. So a seller who completes one cannot quietly keep it from buyers.

Because the form is optional, you may see some homes with a statement and others without one. The absence of a statement does not by itself tell you anything about the home's condition, so the usual steps of inspecting the property and asking questions still matter.

What it does and does not tell you

Because the statement reflects what the seller knows, it can only be as good as the seller's knowledge. A seller who has owned the home for a short time may know little, and a statement cannot report problems nobody has noticed.

• It can point you to topics to ask about, such as past water damage or renovations.
• It records what the seller said at a point in time, which can matter later.
• It does not show what a qualified inspector would find.
• It is not a guarantee about the property's condition.

Buyer beware and what sellers must disclose

Ontario follows buyer beware. 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 from TRESA.

There are exceptions that protect buyers. 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.

In plain words, a patent defect is one you could spot with a careful look and sensible questions, such as a visibly cracked window. A latent defect is hidden, such as a problem inside a wall. Which category a particular problem falls into can be disputed, so it is worth confirming with a lawyer.

If the answers turn out to be wrong

Not every wrong answer leads to a claim. It matters whether the seller knew, whether the issue was a patent or latent defect, and what the buyer did to check. Concealing a patent defect, or being wilfully blind to a latent one, can create liability for a seller. How a court would view a particular mistaken answer depends on the facts, so it is worth confirming with a lawyer.

What remedies are available, and whether the agreement of purchase and sale limits them, depends on the wording of the agreement and the facts. A lawyer can review them with you. Acting quickly helps, because evidence of the original condition can disappear once repairs are made.

What to do next

Buyers and sellers can each take practical steps.

• Sellers: answer only from what you actually know, and say so when you are unsure.
• Sellers: do not hide or paint over a problem. Concealment can remove buyer beware protection.
• Buyers: ask whether a statement exists, and ask for a copy.
• Buyers: arrange your own inspection rather than relying only on the statement.
• Everyone: keep a copy of the statement, photos, repair records and emails.
• If you think something was misrepresented, stop repairs where safe, document the problem and speak with a lawyer.

Frequently asked questions