Ontario seller disclosure rules every owner should know

What you have to tell buyers, what you don't, and what TRESA changed

Ontario's seller disclosure rules are not what most homeowners think they are. There's no general "duty to disclose everything" — but there are specific things you absolutely must disclose, and lying or hiding them creates liability that can follow you for years after closing.

Here's the framework, post-TRESA.

The legal baseline

Ontario follows the doctrine of caveat emptor — let the buyer beware — for patent defects. A patent defect is something a buyer could discover by reasonable inspection. Cracked tile, scuffed floors, dated kitchen — these are the buyer's job to assess.

The exception is latent defects — material problems that are NOT discoverable by reasonable inspection and that affect either:

1. The use or enjoyment of the property (health and safety)
2. The structural integrity of the property

You must disclose known latent defects. Failure to do so is fraud and can result in damages or rescission post-closing.

Examples of latent defects you must disclose

• Recurring basement flooding (especially if you've fixed it cosmetically)
• A roof leak that you've patched but not repaired
• UFFI insulation in wall cavities
• Vermiculite/asbestos insulation in the attic
• Knob-and-tube wiring that has been concealed
• Past or active termite infestation
• Underground oil tank presence
• Foundation cracking that has been resurfaced over
• Marijuana grow-op history
• Death by violent crime on premises (per OREB guidance)

What you don't have to disclose

• Cosmetic issues a buyer can see
• Renovation choices you regret
• Normal wear and tear
• General neighbourhood preferences (the noisy neighbour, the smell from the bakery)
• Most stigma issues that don't affect the structure or use

TRESA and the new framework

The Trust in Real Estate Services Act (TRESA), Phase 2 of which came into effect December 1, 2023, changed how real estate transactions in Ontario are documented and disclosed. Key changes that affect sellers:

• Designated representation replaces the older multiple representation rules. Your listing brokerage represents you; the buyer's brokerage represents the buyer. Multiple representation requires written informed consent and is now the exception, not the default.
• Information and Disclosure to Self-Represented Parties — RECO Form 801 applies when a buyer isn't represented. Your brokerage has obligations to that buyer too.
• Open offer process — sellers can now opt to make offer details public if they choose. This is changing how some Ottawa listings are marketed.
• Code of Ethics updates — brokers have heightened obligations on financial literacy, conflict disclosure, and material fact identification.

The SPIS form: use it carefully

The Seller Property Information Statement (OREA Form 220) is voluntary. It's a questionnaire about the property's history — repairs, renovations, water issues, electrical updates, etc.

I almost never recommend my sellers complete one. Here's why:

• It creates a written record of what you said you knew
• Inaccuracies, even unintentional ones, create liability
• Buyers rely on it, which strengthens their case if something's wrong

The SPIS-light alternative is to disclose specific known issues through your listing agent in writing as part of the negotiation. That keeps the disclosure focused and verifiable.

What I do with my listings

For most Ottawa listings, I work with my seller to:

1. Identify and document all known material issues
2. Pre-list inspect to catch what we may have forgotten
3. Provide written disclosure of latent defects in the listing supplement
4. Keep all renovation receipts, permits, and warranty docs in a folder for buyers

This protects the seller after closing and shortens the buyer's due-diligence. It's how I'd want it done if I were buying.

The Form 200, Schedule A reality

Most Ottawa transactions use the OREA Form 200 (Agreement of Purchase and Sale - Residential), with Schedule A containing condition language. Disclosure obligations get coded into representations and warranties on Schedule A — for example, "the seller represents and warrants there are no known water infiltration issues in the basement."

If you sign such a warranty knowing it's false, you've created direct liability. Read your Schedule A.

What happens if you don't disclose

If a buyer discovers a hidden material defect post-closing and proves the seller knew, Ontario courts have ordered:

• Damages for cost of repair
• Reduction in purchase price
• In severe cases, rescission of the sale
• Costs and interest

The buyer's burden is high — they have to prove the seller knew — but with the SPIS form, text messages, contractor invoices, and home insurance claims as evidence, that burden gets met more often than sellers expect.

My advice in one line

Disclose what's material, document everything, and use a broker who understands TRESA. If you want to talk through what your specific home should disclose before listing, that's a quick call. 613-262-6545 or fil@613realtor.ca.