Purchasing a home is a huge investment and an exciting opportunity. It involves not just a substantial financial commitment, but also a thorough evaluation of various factors that can affect one's lifestyle, security, and long-term wealth. As such, it is a transaction with a lot on the line, and you should feel confident in the decision you are making.

Having all the pertinent information about a home can be a significant contributing factor to your confidence in the purchase, so buyers should know what sellers must disclose about a home during a sale. These disclosures are meant to provide transparency and protect buyers from unforeseen issues. It can also be helpful to know what the law does not require them to disclose.

What Do Homeowners Disclose?

In Ontario, when selling a home, owners are legally required to disclose certain information about the property to potential buyers. As such homeowners should prepare to disclose details of a home that make it unsafe or uninhabitable. These details include:

• A history of fire or flooding

• Any known issues with the foundation, such as cracks or instability

• Presence of asbestos in insulation, flooring, or other materials

• Past or present water leaks and any resultant damage

• Existing mold problems or water damage that could lead to mold

• Lead in drinking water

• Any history of termite damage, rodents, or other pests. Also, any actions taken to address and remediate infestations.

• Known issues with the electrical wiring or system, including outdated or faulty wiring

• Any significant repairs or renovations, including those done without permits

By thoroughly disclosing all relevant information, sellers can ensure a smooth transaction. Although, failing to notify potential buyers of these factors- or worse, attempting to cover them up to deceive buyers- can result in legal action.

Details a Homeowner May Not Disclose

In Ontario, there are details that a homeowner may not disclose like murder, suicide or violent crimes that occurred in the home. Additionally, homeowners are not required to inform potential buyers about the presence of sexual offenders in the neighborhood or any past criminal activities in the area. The expectation that sellers complete a Seller Property Information Statement (SPIS) "to the best of their knowledge" leaves considerable room for half-truths and withheld information.

That said, realtors in Ontario have an ethical obligation to disclose any stigmatizing information they have about a home. Although, the seller may not disclose this information to them either.

To avoid the consequences of buying dangerous or shady property, potential buyers should ask seller and realtor about these details directly. While they may not offer this information, they cannot lie if a buyer asks about them.

Making Informed Decisions

Buyers can perform their due diligence, utilizing public records, neighborhood visits, and professional inspections to gather all pertinent information about a property and its surroundings. Having as much background on a home as possible can minimize the risk of unpleasant surprises after you have signed a purchase agreement.

Thus, you can work with a lawyer to review disclosures, as well as the conditions of the sale. It's also wise to have a professional perform a comprehensive home inspection, which can reveal potential problems that affect the home's value and your decision whether to buy it.