What Must You Disclose When Selling Your Home in Ontario?

You are about to list. Then a quiet worry shows up. That water stain in the basement. The old repair behind the wall. Do you have to tell buyers?

If you are asking what to disclose when selling a house in Ontario, you are asking the right question. The short version: you cannot hide what you know, and some things must be disclosed. Let's walk through where the line is.

What is the difference between a patent defect and a latent defect?

Ontario law sorts property problems into two groups. The Real Estate Council of Ontario (RECO) explains them this way.

A patent defect is one that a buyer, or their home inspector, could find by reasonable observation and by asking questions. A visible crack in a foundation wall is an example. A seller does not have to point out a patent defect, but must not take steps to hide it. If a seller conceals a patent defect, the "buyer beware" idea no longer protects them.

A latent defect is hidden. It cannot be found by an ordinary look around or inspection. A seller must disclose a latent defect they know about.

Ontario courts have described the duty to disclose this way: if a seller knows about a hidden problem that makes the home dangerous, unfit for the buyer's intended purpose, or uninhabitable, it must be disclosed. Examples that lawyers often mention include a serious foundation problem, an unrepaired and serious water problem in the basement or roof, and an illegal basement apartment.

A key detail: the duty is about what the seller knows. A seller is not responsible for a latent defect they truly did not know about, or for a problem that develops after closing.

What does RECO say agents must do?

RECO's Bulletin 7.4, effective December 1, 2023, sets out what a seller's agent must do when the seller has a duty to disclose. The agent must:

1. Disclose the fact to every buyer who expresses interest in the property.
2. Use best efforts to get a written acknowledgement from each buyer who receives the disclosure.
3. Give the buyer a copy of the acknowledgement, if the buyer signs one.

RECO is also clear that the seller's obligation and the list of defects come from case law, not from the Trust in Real Estate Services Act. And the law on latent defects is complicated. If you are unsure whether something counts, the advice is to get a legal opinion.

What can happen if a seller does not disclose?

A buyer who discovers an undisclosed latent defect after closing may have up to two years from the day they discover it to start a lawsuit. That is one reason honest disclosure protects sellers as well as buyers.

Why does this matter in today's market?

Buyers have more choice than they did a few years ago. TRREB's September 2026 report, released October 6, 2026, showed 26,131 active listings across Toronto and surrounding areas and 4.6 months of inventory. When buyers can choose between many homes, trust makes a difference. A seller who is open about known issues gives buyers less reason to walk away later.

What kinds of things should you think about?

I cannot tell you what you legally must disclose in your case. That depends on the facts and, sometimes, on legal advice. But here is a practical way to review your home.

• Past or current leaks, flooding, damp basements, mould, and whether repairs were done properly.
• Foundation cracks that have moved, sagging floors, or past structural repairs.
• Old or unsafe wiring, heating problems, or plumbing that has failed.
• Use and permits. Rooms or units that were added or changed without permits, or a second unit that is not legal.
• Anything you know that could make the home dangerous.

Make a list of what you know, with dates and any repair receipts. That is more useful than trying to remember at the last minute.

What tools can help?

• A pre-listing home inspection. It can show you what a buyer's inspector will find, and gives you time to repair or explain.
• Keep invoices, permits, warranties and inspection reports in one folder.
• A written disclosure. There are standard forms that can be used to put disclosure in writing. A real estate lawyer can advise which, if any, fits your situation.
• A lawyer. If you are unsure about a particular issue, ask a real estate lawyer before you list.

A note for sellers who are also buying

If you are selling and buying, the same idea works for your purchase. Ask questions about the home you are buying, read the inspection report carefully, and ask your lawyer what to look for. What you would want from a seller is what a buyer expects from you.

A note for buyers

Buyers also have a role. A home inspection is your best way to find patent defects. Ask direct questions about the property's history, repairs and any past issues, and read what you receive. If a seller or agent tells you something, ask for it in writing.

A quick way to decide what to do

Go through these steps before you list.

• Write down every problem or repair you know about, with dates.
• Gather receipts, permits and inspection reports.
• Mark anything that was hidden or could affect safety, comfort or use of the home.
• Ask a real estate lawyer about anything you are unsure of.
• Tell your agent before the listing goes live, so disclosure is planned, not rushed.

My take

I would rather deal with a known issue early than be surprised by it during an offer. Being open protects you, and it helps buyers trust the home. I am not a lawyer, so for anything uncertain I will always point you to one. You deserve a clear plan before you list.

If you would like a free, no-pressure chat about preparing to sell, I'm here for you.

Khoa Le, Real Estate Broker | Real Broker Ontario

Phone: 647-271-5461

Email: khoa@realimpactgroup.com

Instagram: @realimpactgroup | @realbrokerage

This post is general information only. It is not legal, tax, financial or mortgage advice. Disclosure duties depend on the facts of each property. Please speak with a real estate lawyer about your situation.