What Sellers Must Disclose About Their Home in Manitoba

You are getting ready to list your home and wondering what you have to tell buyers about leaks, repairs, old problems or the neighbourhood. Many sellers worry that saying too much will cost them money, while saying too little could cause trouble later.

This article explains the idea behind buyer beware in plain words, points out the situations in Manitoba where the rules are more concrete, and gives you a practical way to prepare. For anything specific to your house, a lawyer can confirm where you stand.

This article covers the law of Manitoba.

What buyer beware means in plain words

The Latin phrase is caveat emptor. It is a general idea that buyers should look closely at a property and ask questions before they buy. Whether and how it applies to a particular sale depends on the facts, so it is worth confirming with a lawyer.

It is only a starting point, and some situations come with written requirements, described below. How it plays out in a given case depends on the facts, including what was said, what the buyer could have found, and what the contract says. A lawyer can assess your situation.

When silence can turn into misrepresentation

Misrepresentation is a legal term, and whether something qualifies depends on the facts, so it is worth confirming with a lawyer. In practice, disclosure problems often start with small things: an answer on a form, a comment at a showing, or a line in a listing.

• Do not answer a question unless you are sure the answer is true.
• If you do not know, say you do not know rather than guessing.
• Do not paint over, cover up or temporarily fix a problem so it is harder to notice.
• Keep repair records, receipts and inspection reports so you can show what you knew and did.
• Make sure the listing and any forms say the same thing as your conversations.

Situations where the rules are more concrete

Condominium units: if you are selling a condominium resale, you 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, latest financial statements, by-laws and rules, and any reserve fund study or summary, plus Forms 4, 5 and 6B.

Tenants in the home: if the buyer will not be keeping your tenant, notice depends on the type of tenancy. Where there is no fixed end date, a sale notice is one month if the vacancy rate is 3% or higher and three months if it is below 3%; with a fixed end date it is three months. For fixed-term agreements, termination is not effective before the end date. During a school year, a tenant with a school-aged child living in the unit cannot be required to leave before the school year ends.

New homes: a mandatory statutory warranty on new homes is not in force in Manitoba, because The New Home Warranty Act was never proclaimed and a bill provides for its repeal. Any warranty you offer is voluntary, so describe it accurately.

Facts about ownership and title

Manitoba uses a land titles system whose purpose is to simplify title to land, give certainty to it and facilitate proof of it. Mortgages and encumbrances are dealt with in the Real Property Act, as are caveats, which have an effect on the title. These matters are usually found through a title search, but you should know what is registered against your property before you list.

If you are separated or divorcing, the family home matters too. A family home is property in which a spouse or common-law partner has an interest and which is or was their family residence. The Family Property Act does not itself require the home to be sold, so sort out who has rights before signing a sale.

If you are selling for an estate, transferring a deceased sole owner's house generally requires a court grant so a personal representative can apply to Land Titles. For small estates, an administration order can vest land directly in the beneficiary without a transmission to the representative. Which route applies depends on the estate, so it is worth confirming with a lawyer.

What to do next

• Gather repair receipts, reports and any warranty papers.
• List every problem you know about, including past leaks, pests and water damage.
• Check what is registered on your title and who has an interest in the home.
• If you have tenants, confirm the type of tenancy and the notice that applies.
• Have a lawyer review the wording of any disclosure form before you sign it.

Frequently asked questions