In Ontario, sellers are legally required to disclose known latent defects that render a property dangerous, structurally unsafe, or unfit for habitation. There is no general obligation to volunteer information about every flaw, but concealing serious hidden problems can expose a seller to legal action after closing.
Ontario real estate still operates under the principle of caveat emptor, meaning the buyer is largely responsible for investigating a property's condition before purchasing it. Buyers are expected to conduct their own due diligence, typically through a professional home inspection. As a result, sellers are not required to point out patent defects, which are visible issues a buyer could reasonably discover during a viewing or inspection. A cracked window, stained carpet, or peeling paint all fall into this category.
The legal obligation kicks in with latent defects. These are hidden problems that cannot be identified through a standard inspection. If a latent defect is material, meaning it would influence a reasonable buyer's decision or the price they would pay, and it makes the property unsafe or uninhabitable, the seller must disclose it. Examples include a structurally compromised foundation concealed behind finished walls, hidden mould affecting air quality, or the property's past use as a marijuana grow operation with resulting damage.
Since the Trust in Real Estate Services Act (TRESA) took effect on December 1, 2023, a listing agent who is aware of a fact that the seller is legally obligated to disclose must also share that information with every buyer who expresses interest in the property. This added a layer of accountability for real estate professionals beyond what existed under the previous legislation.
Sellers may also encounter the Seller Property Information Statement (SPIS), a voluntary form created by the Ontario Real Estate Association (OREA). Completing an SPIS is not required by law, and many sellers choose not to fill one out on the advice of their lawyer. However, if a seller does complete the form, every answer must be truthful and accurate. False or misleading responses can form the basis of a misrepresentation claim.
It is worth noting that psychological stigmas, such as a death or alleged haunting, are not considered physical defects under Ontario law. Sellers have no legal duty to disclose these on their own.
For buyers concerned about what a seller may or may not reveal, requesting a home inspection remains one of the strongest protections available. You can read more about that process in our article on whether you need a home inspection when buying a condo.
