Disclosing Defects

Admitting that your house isn't perfect can be one of the most anxiety-producing aspects of selling it. When it comes to serious flaws, however, telling all is not only the best policy; in many provinces it's the law: you must tell the buyer the truth about all physical defects of the house. Indeed most provinces also require sellers to sign either disclosure forms listing any known defects, or disclaimers affirming their lack of knowledge of any defects in the condition of the house.

In recent years, more and more buyers have sued sellers for not disclosing certain problems, or being outright deceitful about defects, before the sale. In these situations, the courts have increasingly sided with the buyers. Because agents have been sued with the sellers in some instances, some agents will no longer show a home unless the seller has completed a disclosure form.

Most provinces require sellers to tell buyers if there is any lead-based paint in or around the property and to report the presence of such environmental concerns as radon or asbestos. But, like most real estate laws, whether and how you're required to disclose the truth about other defects or structural problems, such as a wet basement, patched roof, or cracked foundation, may vary somewhat from province to province. So whether you're selling your home yourself or through a real estate agent, it's critical that you understand and abide by whatever disclosure laws apply in your case. We can provide you information on the specifics of Ontario's requirements, and the necessary forms are usually available in any real estate office.

As a seller, be aware that the frequency of home inspections in real estate transactions offers protection to buyers above and beyond provincial disclosure laws. A professional home inspection is likely to reveal the deepest, darkest secrets of your home. One possible strategy is to hire the inspector yourself and to repair any structural or systems' problems found before putting your house on the market.