What Ontario sellers must disclose when selling a home

No statutory disclosure form in Ontario

RECO's Bulletin 7.4 says that a seller's obligation to disclose latent defects comes from case law and is not part of the Trust in Real Estate Services Act, 2002 (TRESA). There is no form that a seller must hand a buyer the way some other jurisdictions require. That does not mean there is no duty. It means the duty is defined by courts, which is one reason a lawyer should be involved.

Latent defects and patent defects

RECO describes a latent defect as one that would make a property unfit for habitation or potentially dangerous, and that is "generally not apparent to someone exercising reasonable care." A seller must disclose those.

A patent defect is one a buyer could see on a reasonable inspection. RECO says the buyer is responsible for inspections, the "buyer beware" approach, but adds that a seller should not try to conceal a patent defect, or buyer beware may not apply. In plain terms: a stained ceiling that is visible is one thing, and a painted-over problem you know about is another.

Where one falls on that line is a legal call. List what you know about the house, then take the list to your lawyer.

The seller property information statement

A seller property information statement, often called a SPIS, is a form where a seller sets out what they know about the property. RECO's page on property information statements says it is voluntary. An agent may ask a seller to complete one, and if a seller makes one available to buyers, the agent must tell every interested buyer so and give a copy on request.

That makes the statement something to decide on deliberately. A completed form is a written record of your answers. Whether to complete one, and how to answer, belongs with your lawyer, who can read your draft before anything is shared with buyers. If you complete one, answer from records rather than memory.

What your agent must disclose: material facts

Separately from the seller's own duty, agents have duties about material facts. RECO's Bulletin 7.3 says an agent must take reasonable steps to determine material facts, promptly disclose them to the client, advise how they may affect decisions and make best efforts to get an acknowledgement. It adds that what is material to one buyer or seller may not matter to another.

Bulletin 7.4 adds that when a seller's agent knows a fact the seller must disclose, the agent must disclose it to every interested buyer and use best efforts to get a signed acknowledgement. In practice, that means telling your agent about problems you know of is not optional politeness. The agent cannot stay quiet about something you were required to disclose. Our guide on working with a real estate agent in Ontario covers what to ask before you sign a listing agreement.

Stigma: deaths, crime and other non-physical issues

Some things about a house have nothing to do with its condition but may matter to a buyer. RECO's Bulletin 7.5 says stigmas are "not explicitly addressed in the legislation" and lists examples including crime, deaths, notorious owners, hauntings and a remediated grow-op. It tells agents to have a "full and frank discussion" with sellers and says sellers should seek legal advice before giving written instructions on whether to disclose.

If something like this applies to your home, raise it with your lawyer before you list, not after an offer.

What older Waterloo Region homes tend to raise

The items below are common in older houses here. For each, the question is not whether the rule below exists but whether and how it should be disclosed. Talk to your lawyer about each one, and see preparing an older Waterloo home to sell for the practical side.

Knob-and-tube and aluminum wiring

The Electrical Safety Authority (ESA) says on its knob-and-tube page that many insurers will not provide or renew coverage on homes with this wiring because they consider it a higher risk. It says the 2021 Ontario Electrical Safety Code no longer permits new installations but is not retroactive, and recommends an assessment by a Licensed Electrical Contractor. On aluminum wiring, the ESA says some insurers will not provide or renew coverage without an ESA inspection, and describes getting a Certificate of Acceptance and asking your insurer for its requirements.

Because insurance can follow wiring, a buyer's lender or insurer may raise it. Ask your lawyer whether and how to disclose what you know, and ask your own insurer what it requires.

Heritage district status

Some older neighbourhoods are heritage conservation districts. The City of Waterloo says properties in its district, the MacGregor/Albert district, need a permit for most exterior changes, while roof re-shingling and HVAC work usually do not (see the heritage permit page). The City also notes that properties can be protected by individual designation or listing on the municipal register. Kitchener and Cambridge have districts of their own. Confirm status with the municipality, then ask your lawyer how to present it to buyers.

Grand River Conservation Authority regulated area

The GRCA says it regulates river and stream valleys including their floodplains and slopes, wetlands and the Lake Erie shoreline, and that the regulation applies whether or not these areas are mapped. Its Map Your Property tool shows regulated areas by address. A permit is generally needed for building, additions, grading and similar work in a regulated area. We do not say whether any address is in one. Check the map, and ask your lawyer how a regulated area, or past permits, should be communicated. Our guide to flood and home insurance when downsizing covers the insurance side.

Radon test results

Health Canada's guideline is 200 Bq/m3 and recommends a long-term test of about three months (see Take action on radon). The Region of Waterloo Public Health says to find a certified professional through the Canadian National Radon Proficiency Program. If you have a test result, keep it. Ask your lawyer whether and how to share it. Having a test is a separate question from what to say about the result.

Rental history and the City of Waterloo licence

The City of Waterloo says rental licensing requirements start July 1, 2026, with licences for landlords of houses, duplexes, townhouses and other long-term units, renewed annually (see the residential rental licences page). If your Waterloo home has been rented, confirm with the City what applies to your situation and ask your lawyer about it. Short-term rentals have separate rules on the City's site.

A practical way to approach it

Because the line between latent and patent is a legal one, it helps to separate three questions. What do I know about this house? What would a buyer be able to see for themselves on a reasonable inspection? And what, from the first list, should be put in writing for a buyer, in what words? You can answer the first alone. The second and third are where your lawyer and your agent earn their fees.

Write down the history of the house in plain terms, including repairs you made, problems that came back and anything an inspector, insurer or contractor told you. Keep receipts and reports together. Resist the urge to tidy the story. A complete record you can hand over is safer than a polished summary that leaves things out, and your lawyer needs the real version to give useful advice.

Buyers in Ontario commonly arrange their own inspection, and RECO's bulletin makes clear the buyer carries that responsibility for visible issues. An inspection does not reach everything, though, which is why the latent defect duty exists. If an inspector finds something you knew about and had not mentioned, that can complicate a sale, so raise it before listing.

What to gather before you list

• Records of leaks, backups, roof work and other repairs, with dates and who did the work
• Permits and ESA inspection or certificate documents for electrical work
• Insurance claim history and any letters from insurers about the wiring or other features
• Any radon test results and heritage or GRCA correspondence
• Rental licence paperwork if the home was rented
• Your deed, survey and title documents

Handing a lawyer a folder of records is faster, and cheaper, than reconstructing them from memory. The step-by-step downsizing guide shows where this fits, and Costs and Taxes covers what a sale costs. The net proceeds calculator estimates what you might keep, and the resources page lists help with finding a lawyer.

Next steps

Start with a list of everything you know about the house, good and bad. Share it with your lawyer first, then your agent. When you are ready to talk to an agent, you can ask to be introduced to one on the eXp Realty operating team.