#WednesdaysatHomeLove – Seller’s Obligations

“What are a seller’s obligations during a real estate transaction?”

Ask Joe via RECO.

“…People often ask me about sellers’ rights, but it’s important to remember that sellers also have obligations. What I mean by this is that whenever someone has rights, they also have obligations. Before I get into further detail, I would like to clarify that brokerages and agents have certain legal obligations that they owe to their clients and others they deal with in a trade. The legal obligations play a vital role in ensuring that real estate transactions are as seamless as possible, and designed to support buyers and sellers to make informed decisions…

Ontario law also requires sellers to disclose certain defects a property may have.

There are two types of defects: patent defects, which are problems with a home that are visible to the buyer or to a property or home inspector, and latent defects, which are problems that are hidden or not readily apparent.

Since patent defects are typically visible, sellers are generally not required to disclose them to buyers. A couple of examples of such defects are visible cracks in a foundation wall, missing safety railings, and stains on a ceiling.

On the other hand, latent defects are not obvious and may be challenging to spot, even by a home inspector. They could be things such as a major structural problem, or mould. Sellers are legally required to disclose defects that make the home dangerous or uninhabitable, but should seek legal advice about their specific circumstances.

If you are a buyer who thinks this sounds like a seller’s disclosure obligations are limited, you are correct. You may have heard of the term “buyer beware” or the Latin version “caveat emptor,” which means that the buyer is responsible for their own actions. So, it is important for you to do your own due diligence to protect yourself…”

To read the full article, click here.