Ghosts, Ghouls, And The Duty To Disclose

Imagine: you believe your house is haunted and you are ready to move. The question is, do you have to tell the buyers?

A haunted house is often considered a "stigmatized property" — a property that has non-physical issues or features that may affect its marketability.

In Ontario, real estate transactions follow the motto of "caveat emptor" or "buyer beware". This means that the buyer must do their due diligence prior to purchasing the property. There are a few exceptions to this rule where there may be a duty to disclose including where:

• There is a known hidden defect; or
• To not do so would mislead the buyer.

Stigmatized properties are not "Hidden Defects"

A hidden or "latent" defect is defined as "[a] defect that cannot be discovered by inspection and ordinary vigilance. In determining whether something is a defect, the intended use of the land is a relevant consideration". Common examples are things such as faulty wiring, structural problems,