OTTAWA REAL ESTATE
What to Disclose When Selling a Home in Ottawa
Ontario sellers are legally required to disclose known material latent defects — problems not reasonably discoverable through a normal inspection that could affect a home’s health, safety, or use — but are generally not required to disclose purely psychological factors, such as a death on the property, unless they’re tied to an actual physical issue. Getting disclosure wrong isn’t just a reputational risk; it can lead to a lawsuit, a rescinded sale, or financial damages well after closing.
This guide covers what needs to be disclosed, what’s recommended, and where the legal line generally sits — though disclosure law involves real nuance, so confirming specifics with a real estate lawyer before listing is always worth doing.
Jason Polonski walks every seller through disclosure carefully before a home goes to market, since getting ahead of it protects both the sale and the seller. For guidance on a specific situation, call or text Jason at (613) 601-9333 or request a free home evaluation.
What counts as a “material latent defect”
This is the legal core of disclosure in Ontario. A material latent defect is a problem that isn’t visible or discoverable through a normal inspection, that the seller knows about, and that could affect the property’s value, safety, or intended use. This is different from a “patent” defect — something visible and discoverable on an ordinary viewing, like a cracked driveway — which generally doesn’t carry the same disclosure obligation because a buyer can see it for themselves.
Licensed REALTORs in Ontario operate under the Trust in Real Estate Services Act, enforced by the Real Estate Council of Ontario, which sets professional conduct standards around honest dealing, including disclosure, and the Ontario Real Estate Association publishes background on the standard forms used to document a transaction, including disclosure-related clauses.
Structural and physical defects
Known structural issues need to be disclosed if they meet the material latent defect test — foundation cracks affecting structural integrity, a roof with an active leak, significant water damage, or framing concerns a buyer wouldn’t catch during a normal viewing. Past issues that have been fully repaired still generally need to be disclosed if a reasonable buyer would want to know about them, along with any documentation of the repair. Ongoing or unresolved pest issues — termites, carpenter ants, rodents, or bed bugs — fall into the same category.
Environmental hazards
Known environmental issues carry disclosure obligations when they meet the material latent defect standard. This includes mould that isn’t visible or has been remediated, past or present asbestos, urea-formaldehyde foam insulation (UFFI) in older homes, and known soil or groundwater contamination. Radon is a specific and genuinely important one for the Ottawa area — Health Canada publishes guidance on radon testing and mitigation, and if a home has been tested and shows elevated levels, or has a mitigation system installed, that information should be disclosed along with any supporting documentation.
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Electrical and mechanical system issues
Older Ottawa homes sometimes carry electrical or mechanical issues that go well beyond cosmetic condition — aluminum wiring, knob-and-tube wiring, an undersized electrical panel, or an old buried oil tank are all examples that can affect a buyer’s financing, insurance, or safety, and generally need to be disclosed if known. This is an area where a construction and electrical trades background is a genuine advantage in catching what needs to be flagged before a buyer’s own inspector finds it. The Electrical Safety Authority sets the standards for electrical work and safety in Ontario and is a useful reference for understanding what these issues actually involve.
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Legal and title issues
Legal and title matters need to be disclosed regardless of whether they’re visible on a walkthrough — outstanding liens or encumbrances, easements or rights-of-way affecting the property, known encroachments onto or from a neighbouring property, and any pending legal disputes involving the home. For condominiums specifically, sellers should be prepared to provide a current status certificate, and the Condominium Authority of Ontario is the resource for understanding what that document covers and what buyers are entitled to review before closing.
Municipal notices and work orders
Any outstanding municipal work order, unresolved building code violation, or known issue affecting a property’s compliance needs to be disclosed. The City of Ottawa maintains records related to permits, work orders, and property compliance that a lawyer or buyer can typically request as part of due diligence during a transaction.
Psychological stigma: what’s generally not required
Ontario generally does not require sellers to disclose purely psychological or reputational factors — such as a death occurring on the property — unless that event is connected to an actual physical defect that would otherwise need disclosure. That said, if a buyer asks a direct question about this kind of issue, providing an intentionally false answer can create legal exposure separate from the general disclosure rules. This is a genuinely nuanced area of Ontario law, and it’s worth a specific conversation with a real estate lawyer if it’s relevant to a particular property — the Law Society of Ontario can help find one.
The Seller Property Information Statement (SPIS)
A Seller Property Information Statement is an optional form some sellers complete to summarize a property’s condition and history for buyers. It isn’t legally required in Ontario, and REALTORS® are generally divided on whether completing one helps or adds risk, since anything written down can become part of the legal record if a dispute arises later. Whether to use one is worth discussing directly with both a REALTOR® and a lawyer rather than defaulting to a standard practice, since the right answer can depend on the specific property and situation.
What happens if a seller doesn’t disclose
Failing to disclose a known material latent defect carries real consequences that can surface well after closing — a buyer who discovers an undisclosed issue may pursue damages to cover repair costs, or in some cases seek to have the transaction rescinded entirely. Beyond the legal exposure, it undermines the trust the entire transaction depends on. Getting ahead of disclosure, with a lawyer’s guidance where the situation is unclear, is far less costly than dealing with a claim after the fact.
Disclosure at a glance
| Category | Examples | Generally requires disclosure? |
|---|---|---|
| Structural defects | Foundation cracks, roof leaks, framing issues | Yes, if known and not visible |
| Environmental hazards | Mould, asbestos, UFFI, radon | Yes, if known and not visible |
| Electrical/mechanical | Aluminum wiring, knob-and-tube, oil tanks | Yes, if known |
| Legal/title issues | Liens, easements, encroachments, disputes | Yes, regardless of visibility |
| Municipal notices | Work orders, code violations | Yes, if known |
| Psychological stigma | Deaths on the property | Generally no, unless tied to a physical defect |
| Visible/patent defects | Cracked driveway, dated finishes | Generally no — buyer can see it directly |
Ontario disclosure law involves genuine nuance and can change — always confirm current requirements with a real estate lawyer before listing.
Get disclosure right from the start
Handling disclosure properly protects a sale from problems that can otherwise surface months or years after closing, and it’s something Jason Polonski takes seriously with every listing. With 15+ years selling homes across Ottawa and the west end, a construction and electrical trades background that catches issues other agents might miss, and recognition on the Best in Ottawa Top REALTOR® list seven years running, Jason helps sellers get ahead of disclosure instead of being caught off guard by it. His results and client reviews are on his Google Business Profile.
For guidance on a specific property, call or text Jason at (613) 601-9333, request a free home evaluation, or explore the full guide to selling your house in Ottawa.
What to Disclose When Selling a Home (FAQs)
No, it’s optional, not a legal requirement. Whether completing one is a good idea depends on the specific property and situation, and it’s worth discussing with both a REALTOR® and a lawyer before deciding.
A buyer who discovers an undisclosed material latent defect after closing may pursue damages for repair costs, and in some circumstances could seek to rescind the transaction. This is why proactive disclosure, with legal guidance where needed, is far less risky than staying silent.
Generally, no — Ontario doesn’t require disclosure of purely psychological stigma, such as a death on the property, unless it’s connected to a physical defect that would otherwise require disclosure. This is a nuanced area of law worth confirming with a lawyer if it’s relevant to a specific property.
Generally, yes, if it meets the material latent defect standard — a reasonable buyer would typically want to know about past water damage even if it’s been fully repaired, along with any documentation of the repair.
Yes, generally. If a home has been tested for radon and the results are known, or a mitigation system has been installed, that information should be disclosed along with supporting documentation.
A REALTOR® familiar with the property can flag likely disclosure items based on the home’s age, systems, and history, but a real estate lawyer is the right resource for confirming the specific legal obligations, especially for anything unusual or unclear.
