What you must disclose when selling your Ontario home

Selling your home is equal parts strategy, storytelling, and paperwork. The part that keeps many sellers up at night is disclosure: what you must tell a buyer, what you should tell them, and what’s considered the buyer’s job to discover. Get this right, and you protect your sale price, your timeline, and your peace of mind. Get it wrong, and you invite deal friction, price re-negotiations, or worse, a lawsuit after closing.

Below is a plain-English guide on what sellers must disclose, what’s optional but smart, and how to avoid common traps that derail transactions.

First principles: caveat emptor, patent vs. latent defects

Ontario real estate still runs on caveat emptor—buyer beware. Buyers are expected to inspect a property and satisfy themselves as to its condition. Problems a buyer could reasonably see or discover during a routine inspection are patent defects. Sellers generally do not have a legal duty to disclose patent defects, though trying to hide them (fresh drywall over known water damage, for example) can strip you of buyer-beware protections.

By contrast, latent defects are the hidden issues—often behind finishes or not discoverable on a reasonable inspection—that a seller already knows about. In Ontario, sellers must disclose known latent defects that make the home dangerous or unfit for habitation. Think concealed structural movement, chronic hidden leaks with mould, a buried leaking oil tank, or unsafe, concealed electrical work. Failing to disclose can amount to misrepresentation and lead to litigation.

What exactly must be disclosed?

1) Known material latent defects

These are the non-obvious, serious problems you already know about that make the home unsafe, or unfit for ordinary use. Examples include concealed structural issues, persistent water ingress behind finishes, dangerous electrical or plumbing hidden in walls, or environmental hazards like a leaking underground oil tank. Attempting to conceal defects increases liability.

2) Truthful answers to direct questions

If a buyer or their agent asks a clear question—“Has the basement ever leaked?”—you must answer honestly and completely based on what you know. Courts have held sellers (and sometimes their agents) liable for negligent misrepresentation when answers were misleading or incomplete.

3) Material facts your agent must disclose

Under Ontario’s current rules for registrants (TRESA), your agent has their own duty to identify and disclose material facts to clients, and in certain cases to other parties. That is separate from your legal duty as a seller, but it affects strategy—your agent cannot withhold material facts that the law or the Code requires them to share.

4) Condominium information via a Status Certificate

For condos, the status certificate is the key disclosure package. It must disclose the corporation’s financials, by-laws, legal actions, and any anticipated fee increases or special assessments in clear language. Buyers’ lawyers rely on it, and condo corporations are obligated to provide it within statutory timelines.

5) Existing tenancies and the reality of vacant possession

If your property is tenanted, you must be transparent about leases, rents, and whether you can truly deliver vacant possession. In Ontario, ending a tenancy so a buyer can move in typically requires proper notice (commonly 60 days to the end of a rental period) and compensation of one month’s rent (Form N12 process), or a signed N11 agreement to terminate. Misrepresenting vacant possession can breach the agreement.

What about things sellers often worry about?

Stigmas: death, crime, “hauntings,” or notoriety

Ontario law does not impose a general duty on sellers to disclose a past death, murder, or alleged haunting. These are non-physical stigmas, not defects. If a buyer asks, answer honestly, and follow your agent’s advice on what must be treated as a material fact in context.

Unpermitted renovations and old repairs

Work done without required permits can create hidden safety issues. If you know about concealed defects arising from that work, disclosure is required. Even where the work appears sound, be ready to share what you know, provide documentation if you have it, and avoid statements that could be read as guarantees.

“As-is” clauses

Selling “as-is” does not shield a seller who hides or misrepresents a known material latent defect. Courts focus on what you knew, what you said, and whether the issue affects safety or habitability.

Should you complete a Seller Property Information Statement (SPIS)?

The SPIS (an OREA form) is optional. It can help set buyer expectations when used carefully, but it also creates a written record that sellers must complete accurately. Many lawyers advise discussing SPIS with your agent and lawyer before signing, and answering conservatively and truthfully if you proceed.

A practical seller’s checklist

Use this as a conversation starter with your agent and lawyer. If any item is hidden and you know about it, expect to disclose.

• Water and structure: history of foundation movement, concealed leaks, chronic moisture, mould remediation behind finishes.
  
  

• Electrical, plumbing, HVAC: dangerous wiring concealed in walls, recalled or problematic systems that were covered up, known Kitec or similar high-risk piping hidden in finished spaces.
  
  

• Environmental hazards: buried oil tanks, contamination, asbestos that poses ongoing risk.
  
  

• Permits and work orders: knowledge of open building permits, stop-work orders, or concealed unpermitted structural changes.
  
  

• Title issues that impair ordinary use: known encroachments or easements that materially affect day-to-day use (for example, a hidden shared-driveway agreement that limits parking).
  
  

• Condo-specific: anticipated fee increases, special assessments, legal proceedings—provided through the status certificate.
  
  

• Tenancies: accurate details of any lease, deposits, notices given, and whether vacant possession is actually achievable by closing.

Smart process for sellers

1. Tell your agent everything you know, privately. They can help sort patent from latent issues, and navigate what must be disclosed to whom, and when. Registrants are guided by TRESA-era “material facts” duties—lean on that expertise.
   
   

2. Gather documents: old permits, invoices, warranties, engineering reports, past insurance claims, and any remediation records. These often turn red flags into routine disclosures.
   
   

3. Pre-list inspections or quotes for known issues can frame buyer expectations, and reduce haggling after a buyer’s inspection.
   
   

4. For condos, order the status certificate early so your lawyer can review and you can plan around any surprises.
   
   

5. If tenanted, plan the path: whether you’ll sell with the tenant, pursue a signed N11, or coordinate a compliant N12 with proper notice and compensation. Do not promise vacant possession you cannot deliver.

FAQs

Do I have to disclose a past death in the home?
No general legal duty exists in Ontario to disclose deaths or other non-physical stigmas. Answer truthfully if asked, and follow your agent’s guidance on what qualifies as a material fact in the specific trade.

If I fixed a leak years ago, do I need to mention it?
If you know there was a leak and repairs were made behind finishes, raise it with your agent and lawyer. Repairs that failed, or conditions likely to recur, can cross into “material latent defect.” When in doubt, carefully disclose with supporting documentation.

Will selling “as-is” protect me?
“As-is” never excuses hiding a known, dangerous, or uninhabitable latent defect, or misrepresenting facts.

Is the SPIS required?
No. It is optional. Complete it only after advice, and answer truthfully and conservatively if you choose to use it.

Bottom line

Buyers must do their homework, but sellers cannot hide known dangers. If an issue is hidden, you know about it, and it affects safety or habitability, you must disclose it. Proactive, accurate disclosure—paired with the right strategy—keeps your deal clean, protects your price, and lowers your legal risk.

If you want expert guidance on what to disclose, how to position your home, and how to keep your sale on track, connect with The Johnson Team. As one of the GTA’s top-performing real estate teams led by Jeff and Liz Johnson, we combine deep market knowledge, sharp negotiation, and creative marketing to maximise your result. Sellers count on us to prepare smart disclosure packages, set the right price, and handle every detail from staging to paperwork.

Thinking about selling? Contact The Johnson Team to start working with an agent today.