Seller Disclosure

Seller Disclosure by Tammy Dufault

According to provincial laws, there are certain details that are required to be shared when you are selling your home, however your disclosure obligations are limited. It very much depends on the nature of any potential defects your home may have.

There are two types of defects. Patent defects- these are defined as problems that are visible to a buyer or home inspector- and latent defects- these would be problems that are not easily detected.

Patent defects are generally easy to see and do not need to be disclosed. For instance, cracks in a foundation wall, water stains suggesting a leaky roof, broken windows. Buyers are responsible to look carefully,do research and have the property inspected.

Latent defects are not obvious and can not always be discovered by a home inspector or other professional. Examples include a major structural problem, hidden fire damage or mold or a basement that only floods during severe rainfalls. If a seller knows about a latent defect and doesn’t disclose it to a potential buyer, they can be exposed to a lawsuit.

If you’re a buyer interested in a property, ask your realtor to find out as much as possible about the home to avoid any future surprises. Your agent can ask the seller’s representative about the existence of any potential latent defects. A  listing agent must follow a code of ethics that forbids knowingly misrepresenting the condition of a property.

Buyers will be influenced by any information on defects in their decision to buy, how much to offer and any particular conditions they would like to choose to include in their offer.

A great idea for home sellers is to get a thorough and professional home inspection done before listing your house. As a buyer it’s important to also get your own home inspection. If there are any concerns with major systems, a licensed contractor or engineer can help in identifying defects. As a seller or a buyer, consult with a real estate lawyer about any defects that may be found.