Repaired Defects and Disclosure

Things You Should Know About Disclosure In A Criminal Case | Slaferek  Callihoo

(Ontario)

Question:

If it is something that has been fixed does it still need to be disclosed? Say a flooded basement?

Answer:

The Seller is under an obligation to disclose a material latent defect of which he has knowledge. Fixing or not fixing is not the issue at all.

The issue is whether there is currently a material latent defect to the Seller’s knowledge.

In your flooding example the issue would be determined on the basis of the source of the flood. If it were a nearby river overflowing or a sewer backup, then that can just as easily occur again. Presumably, repairs and renovations improved the basement. But that doesn’t matter.

Assume that a toilet overflowed on the main floor. It was replaced. The new toilet is not overflowing. Initially, one would ordinarily think that no disclosure would be required. However, if there were lots of mould and only cover-up repainting undertaken, then disclosure of the incident may be required. Even though the source was removed, the repairs and renovations may have been inadequate.

The correct answer is really only apparent on a case by case analysis.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

Leave a Reply

Your email address will not be published.