Question:
There are frequently issues with Stigmas, Death, Drugs, Grow Ops. Is disclosure required? If these matters have been remediated, then is disclosure required?
Is there any Statute of Limitations here?
Answer:
There are several different players here:
1) Seller,
2) Listing Agent and
3) Buyer’s Agent.
All three have separate and distinct duties. So, the first question, of course, is “who” are we talking about? Then, we have three different answers. You need to know the answers to each. If you just know one answer, then in two cases, you will be WRONG!
The Seller doesn’t have to disclose. The Listing Agent has to tell the Seller. The Listing Agent must follow the Seller’s instructions. The Listing Agent requires the Seller’s permission to disclose to third parties. The Buyer’s Agent has a duty to investigate, determine and verify the material facts and then disclose them to the Buyer.
There is no applicable limitation period in Ontario.
UPDATE: The new TRESA came into effect on 1 December 2023. There is a new requirement for Listing agents to disclose material latent defects that the Seller knew about. This compliance still requires the Seller’s consent. There are some work-arounds and solutions to the problem. It gets “tricky” so you will have to figure that out.
Brian Madigan LL.B., Broker