A Disclosure must be provided to the other side. That’s the purpose. But, they are not required in the Listing. The information may deter some potential Buyers.
You have to write it up, and they must be mentioned on a document with the title “Disclosure” in large print and with a provision to have them sign an acknowledgment.
once disclosure is required, TRESA and RECO require it to be done properly.
According to RECO Bulletin 3.1 – Disclosures, Consents, and Acknowledgements
“Disclosures must be identified by the prominent placement of the word ‘disclosure’.”
RECO further states:
“All disclosures, consents, and acknowledgements must be:
• Written in plain language that is clear and concise; and,
• Presented in a manner that draws the person’s attention to the required information.”
RECO also explains that disclosures should generally be separate from the Agreement of Purchase and Sale:
“To ensure the required disclosures, consents, and acknowledgements are effectively brought to the person’s attention, they should be distinct and separate from a representation agreement and separate from any agreement facilitating a real estate transaction.”
In addition, RECO states:
“The brokerage must make best efforts to obtain a written acknowledgement from each person receiving the disclosure indicating that the disclosure has been received…”
Accordingly, best practice under TRESA is:
- Prepare a separate document clearly titled DISCLOSURE (large, prominent print).
- State the issue plainly and specifically.
- Provide the disclosure to the other side before the transaction proceeds too far.
- Include an acknowledgement section for signature confirming receipt.
- Keep the signed acknowledgement in the brokerage file.
TRESA does not specifically require every disclosure to appear in the public listing itself. The legal obligation is that material facts be properly disclosed to the other side — not necessarily advertised to the entire marketplace.
For example, RECO specifically says regarding seller information statements:
“If a real estate agent represents a seller and knows that the seller has completed a written statement that is intended to provide information to buyers about the property, the agent must,
- disclose the existence of the statement to every buyer who expresses an interest in the real estate; and
- if requested by a buyer, make the statement available to the buyer as soon as possible after the request is made.”
That wording is important: RECO speaks about disclosure to interested buyers — not mandatory publication within the listing itself.Top of Form
Brian Madigan LL.B., Broker