What Sellers Must Disclose About a House in Manitoba

Before you list, you may wonder which defects and facts you have to tell buyers about. The risk of getting it wrong is real: a buyer who feels misled may look for ways to cancel or to pursue you afterwards.

Manitoba sets out a clear disclosure package for condominium resales. For other homes, the answer turns on your facts and the contract, so this article explains what is clearly set out and where to get advice.

This article covers the law of Manitoba.

Condominium resales: the required package

If you are selling a condominium unit, the seller must give the buyer a current seller disclosure statement (Form 2A, 2B or 2C), a corporation disclosure statement signed within 90 days (Form 3), the declaration with amendments, budgets, the latest financial statements, by-laws and rules, and any reserve fund study or summary, plus Forms 4, 5 and 6B.

Section 51(2) of The Condominium Act lists the resale disclosure documents, and the reserve fund study is governed by s. 50.

New or pre-registration condo units

Before the declaration and plan are registered, a different package applies. It includes Form 6A, Forms 4 and 5, the declarant's disclosure statement (Form 1), a reserve fund study or summary, the proposed declaration, the first by-law and rules, any proposed management agreement and plan parts for the unit. Financial projections are also required if the sale falls in the first year all owners contribute to common expenses.

The risks of silence for condo sellers

The condominium cooling-off period is seven days. It starts on the later of signing and the seller delivering the disclosure documents, and the buyer can cancel for any reason. Missing or late documents therefore keep the buyer's option open longer. If day seven falls on a weekend or holiday, it runs to the next business day, except Remembrance Day.

• After cancellation in the cooling-off period or for a material change, the seller must refund amounts paid plus interest within 10 days after receiving the cancellation notice.
• A buyer can cancel for a material change by midnight of the seventh day after the seller's written notice, but not after taking possession.
• A seller who disputes a cancellation made after the cooling-off period may apply to court within 10 days of receiving the notice.

Other houses and new homes

For a house that is not a condominium, the specific duties depend on the facts, such as what you know about a defect and what the contract says. A lawyer can explain how they apply to you. As a general matter, avoid hiding or downplaying a known problem, and keep records of repairs and inspections.

If the home is new, a mandatory statutory warranty is not in force. The New Home Warranty Act was never proclaimed, and a bill provides for its repeal. Any warranty on a new home would come from a builder or other private provider, so read its terms.

What to do next

• List the problems you know about, such as leaks, past repairs, or structural and mechanical concerns.
• Gather receipts, permits, inspection reports and condominium documents.
• If you are selling a condominium unit, prepare the full package of forms and documents early.
• Ask your lawyer and real estate professional what to disclose before you sign a listing or accept an offer.
• Answer buyers' questions accurately and in writing where you can.

Frequently asked questions