A material fact in Ontario real estate is any fact that would affect a reasonable person's decision to buy or sell a property. Under the Trust in Real Estate Services Act (TRESA), which governs real estate professionals in Ontario, agents have a legal duty to investigate, determine, and disclose material facts to their clients.
The formal definition comes from the legislation itself. TRESA defines a material fact as 'a fact that would affect a reasonable person's decision to acquire or dispose of' an interest in real estate. That definition is deliberately broad. It is not limited to physical defects or financial issues. It can include anything from the condition of major building systems to environmental hazards to nearby land uses that could affect a property's value or a buyer's enjoyment of it.
What counts as material will vary from one transaction to the next. RECO, the Real Estate Council of Ontario, has noted that it cannot provide a universal list because what matters to one buyer may be irrelevant to another depending on their intended use for the property. Common examples include the type of wiring or plumbing in the home, the age and condition of the roof or furnace, the presence of substances like asbestos or urea formaldehyde foam insulation, whether a rental unit in the basement was built with proper permits, and the existence of nearby facilities such as industrial operations or rail corridors.
Under TRESA, the agent's obligation goes beyond simply passing along what the seller volunteers. Agents representing a buyer must take reasonable steps to investigate and verify material facts, not just relay what they are told. When a material fact is identified, the agent must disclose it in writing and advise the client on how it could affect their decision. The agent is also required to make best efforts to obtain an acknowledgement that the disclosure was received. This written disclosure requirement was strengthened when TRESA replaced the former Real Estate and Business Brokers Act on December 1, 2023.
For sellers, the concept intersects with the common law duty to disclose latent defects. A seller is not legally required to point out problems that are visible and obvious, but they must disclose hidden issues that render the property dangerous or unfit for habitation. An agent representing a seller must still identify and communicate material facts to their own client, even if the seller already knows about them, because the agent's professional obligation exists independently.
Understanding what constitutes a material fact helps buyers ask the right questions and helps sellers understand what their agent is obligated to investigate on their behalf. To learn more about buyer responsibilities during a purchase, read What Does Caveat Emptor Mean When Buying a Home in Ontario?