What do you have to disclose when selling a home in Ontario?

By Maria Capotorto-Chopra  ·  COO and Broker of Record

Most sellers have nothing difficult to disclose, and the ones who do usually settle it in a single conversation at the listing appointment.

In Ontario you must disclose latent defects. Those are hidden problems that make a home dangerous or unfit to live in. You do not have to volunteer patent defects, the ones a buyer or a home inspector can see. The Real Estate Council of Ontario sets out both categories for agents in Bulletin 7.4. RECO also notes that a seller’s duty to disclose comes from case law rather than real estate legislation.

Below we cover where that line sits and how stigmas are treated. We also look at what a condo seller owes a buyer, and why handling this early tends to make a sale smoother.

What is a latent defect?

A latent defect is a hidden problem that makes a home dangerous or unfit to live in.

RECO calls it a defect that is “generally not apparent to someone exercising reasonable care.” The problem has to make the property “unfit for habitation, dangerous, or potentially dangerous.” RECO adds a caveat worth holding onto. Unfit for habitation “does not necessarily mean that a person cannot live in the property,” and a court may weigh other factors. If a buyer could not find the problem through a careful look and a normal home inspection, it is likely latent.

Common examples include a basement that floods each spring and has been patched over. Others are unsafe wiring buried behind finished walls, a septic system that has failed, and structural movement hidden under fresh drywall.

Most homes have none of these. The list is short on purpose, because the duty is narrow.

RECO also asks sellers not to be wilfully blind. In plain terms, that means avoiding a question because you would rather not know the answer. A seller who suspected a problem and chose not to look can still be held responsible.

When you are unsure whether something counts, treat it as though it does and mention it to us. Most of the time the answer takes a minute.

Do you have to point out problems a buyer can see?

No. Patent defects are the visible ones, and buyer beware still applies to them. Buyer beware means the buyer carries the risk of what they could have seen for themselves.

RECO describes a patent defect as one “that can be detected by a potential home buyer or their home inspector by reasonable observation and inquiry.” A buyer is expected to notice a cracked window, a stained ceiling tile or a sloping floor.

There is one firm limit. You cannot hide a patent defect to stop a buyer from finding it. RECO is direct about this, saying “a seller should not attempt to conceal the patent defect or buyer beware may not apply.” Fresh paint over an active leak is the classic version. So is a bookcase moved in front of a damaged wall.

The practical takeaway is simple. Let the home inspector do their work, and present the house as it really is.

Do you have to disclose a death or another stigma?

Stigmas sit outside the legislation in Ontario, so there is no clear legal duty to disclose one.

RECO defines a stigma as “a non-physical, intangible attribute of a property that may elicit a psychological or emotional response” from a buyer. Its published examples include a death at the property, past use in criminal activity, and a remediated cannabis grow operation. Previous ownership by a notorious person and reports of hauntings are on the list as well.

RECO states plainly that stigmas are not explicitly addressed in the legislation. It adds that the weight a buyer gives one “will be determined by a buyer’s personal values and perceptions.” Two buyers can hear the same fact and react in opposite ways.

That is why RECO tells agents to have a full and frank discussion with sellers about stigma. It also asks agents to recommend legal advice on a seller’s rights and obligations. The third step is to obtain written instructions from the seller on disclosing the stigma to buyers. Our brokers follow that guidance, and we raise the subject at the listing appointment.

One point is worth holding onto. A buyer who asks you a direct question puts you in a different position, because answering that question untruthfully creates a problem of its own.

What does a condo seller have to provide?

Condo sellers lean on one document, the status certificate, and it carries much of the disclosure for them.

A status certificate is a package of information about the unit and the corporation. The Condominium Authority of Ontario says it can include the declaration, by-laws and rules. The current budget, the audited financial statements and a statement on the reserve fund study come with it.

It also sets out the common expenses for the unit and whether they are in arrears. You will find any special assessment, the insurance certificates, and any outstanding judgment or ongoing litigation against the corporation.

The reserve fund is the corporation’s savings for major repairs, so that statement matters. The Condominium Authority of Ontario puts the maximum fee at $100 including taxes, and says the certificate must be provided within 10 days.

Time the order with your real estate lawyer. Buyers and their lawyers read that package closely, and they usually want a recent one. Ordering too early can mean paying for a second certificate.

How does early disclosure help the sale?

Say it early, say it in writing, and bring the paperwork that shows what was done about it.

Early disclosure does most of the work. A buyer who hears about a repaired foundation crack at the listing stage, with the invoice and the permit attached, treats it as maintenance. The same buyer hearing it days before closing treats it as a warning.

Three habits make this easier.

Tell your agent everything at the listing appointment, including the parts you would rather skip. We can only handle what we know about.

Gather your records. Invoices, permits, warranty paperwork and past inspection reports turn a worry into a documented repair.

Ask a real estate lawyer where the line is unclear. Stigmas and older repairs are the usual grey areas, and a short call settles most of them.

Timing is worth a thought for a second reason. Homes across the GTA took an average of 35 days to sell in August 2026, according to the Toronto Regional Real Estate Board. Sorting the paperwork before you list keeps that time working for you.

If you are planning a sale this autumn, we are happy to walk through what has to be said. Start with a free home evaluation or talk to our team.

Quick Questions

Do I have to disclose a previous basement flood?
Ongoing flooding, or flooding that left the home unsafe or unfit to live in, is likely a latent defect and has to be disclosed. A single event that was properly repaired sits in a grey area. Share the invoices and ask your lawyer.

What happens if a seller hides a latent defect in Ontario?
RECO warns that failing to disclose a latent defect might be considered misrepresenting the state of the property. A buyer who discovers one after closing may pursue the seller. That is a legal matter, so take advice from a real estate lawyer rather than your agent.

Who pays for the status certificate in Ontario?
Either side can order it, because the Condominium Authority of Ontario says anyone may request one. In practice the seller usually pays. Ask your lawyer when to order it, because a buyer’s lawyer will want a recent certificate rather than one pulled months earlier.

Do I have to tell buyers that someone died in the house?
Ontario legislation does not address stigmas, so there is no clear legal duty to disclose. RECO advises agents to discuss it openly with sellers and to recommend legal advice. Many sellers choose to disclose anyway, because a buyer who learns it later may feel misled.

Corcoran Horizon Realty

This article is general information, not tax, legal or financial advice. Rule and program details are from the Real Estate Council of Ontario, the Condominium Authority of Ontario and the Toronto Regional Real Estate Board, and are current as of September 28, 2026.