A property disclosure statement is a form on which a seller answers questions about the condition of their home. In British Columbia it is standard practice. In Ontario it is voluntary – and most real estate lawyers advise their clients not to sign one. For a related discussion, read the house has a past—does the seller have to tell you?
That advice surprises people, so it is worth explaining before anything else.
Why Ontario lawyers tell sellers not to complete an SPIS
Ontario’s version is the Seller Property Information Statement (SPIS), published by the Ontario Real Estate Association. It is not required by law, and the Toronto market has largely stopped using it – sellers do not offer them and buyers’ agents rarely ask.
The reason is liability. Signing an SPIS does not reduce what you must disclose. It creates a written document, answered from memory, that a buyer can later sue on for misrepresentation. Get one answer wrong about a repair from eleven years ago and you have handed the buyer a claim they would not otherwise have had. The SPIS has generated a long line of Ontario litigation for exactly this reason.
Declining to complete one does not let you hide anything. Your legal disclosure duty exists whether you sign a form or not, and it is the same duty either way. What the form adds is documented exposure, not honesty.
If a buyer’s agent asks for an SPIS, the usual answer from a seller’s lawyer is: no form, and specific written answers to specific written questions instead.
What you are legally required to disclose in Ontario
Ontario still runs on caveat emptor – buyer beware – with important exceptions. The line falls between two kinds of defects.
| Patent defect | Latent defect | |
|---|---|---|
| What it is | Visible on a reasonable inspection | Hidden – not discoverable by looking |
| Examples | Cracked tiles, a stained ceiling, a sagging deck | Mould inside a wall, a foundation problem behind drywall, past flooding, unpermitted work |
| Must you disclose it? | No | Yes, if it makes the property dangerous or unfit to live in |
You must also never actively conceal a defect, and you must never answer a direct question falsely. Painting over a water stain the week before listing converts a patent defect into fraud.
Since TRESA Phase 2 came into force on December 1, 2023, your real estate agent carries their own duty to identify and disclose material facts – in some cases to the other side of the deal, not only to you. Telling your agent about a problem and asking them to keep quiet no longer works.
Do sellers have to disclose water damage in Ontario?
Yes, where it was serious enough to make the home unsafe or unfit, and yes if you are asked directly.
Repaired damage still matters. A basement that flooded twice and has since been waterproofed is a latent defect if the underlying cause remains, and a strong disclosure if it does not – hand over the invoices and the warranty. Documented repairs reassure buyers. Discovered-later repairs produce lawsuits.
The same applies to mould, asbestos, prior grow-op or drug-lab use, and structural work. If you would want to know it as a buyer, disclose it and paper it.
Do I have to disclose a past problem that has been fixed?
If the repair genuinely resolved the issue and the property is now safe and habitable, there is usually no obligation to volunteer it. Two cautions:
- If you are asked, answer truthfully and completely.
- If the repair was done without permits, that is its own disclosable problem. Unpermitted work travels with the house, and the buyer inherits the municipality’s ability to order it removed.
Disclosure across the provinces
| Province | Form | Status |
|---|---|---|
| British Columbia | Property Disclosure Statement (PDS) | Standard practice; separate versions for residential, strata, rural and land-only |
| Ontario | Seller Property Information Statement (SPIS) | Voluntary; commonly declined on legal advice |
| Quebec | Declaration by the seller | Voluntary form, but the seller warrants against hidden defects by law – the strictest regime in Canada |
| Manitoba, Newfoundland and Labrador, and most others | Property Condition Disclosure Statement | Voluntary, brokerage-driven |
Quebec is the genuine outlier. Its Civil Code imposes a legal warranty of quality on the seller, so a buyer who discovers a hidden defect can pursue the seller regardless of what was or was not written down.
What a disclosure statement covers
Where a form is used, it usually asks about:
- Roof age, and any history of leaks
- Water penetration, flooding, and drainage
- Foundation, structural movement, and settling
- Asbestos, mould, lead paint, radon, or a buried oil tank
- Renovations or additions, and whether permits were pulled
- Electrical, plumbing and HVAC condition, including knob-and-tube or aluminum wiring
- Well and septic details on rural property
- Boundary disputes, easements, and encroachments
Answers are limited to the seller’s actual knowledge. That is why disclosure is weakest exactly where buyers need it most – an investor who never lived in the property may honestly know very little about it.
Can you sue a previous homeowner for non-disclosure in Canada?
Yes, but the bar is higher than most buyers expect.
A claim generally requires one of: a latent defect that made the home dangerous or unfit and that the seller knew about; active concealment; or a false answer to a direct question or on a signed disclosure form. Discovering a patent defect you could have seen – or could have found with a home inspection – is normally your problem, not the seller’s.
Remedies range from damages covering the repair cost and the reduction in value, up to rescission of the sale in the clearest cases. Litigation is slow and expensive, which is the strongest practical argument for a proper inspection and well-drafted conditions before you close. A real estate transactions lawyer can also review conditions before you close.
How long does disclosure take in Ontario?
For a freehold sale, there is no waiting period – you ask, and the seller answers or does not. For a condominium, the status certificate is the real disclosure document, and the corporation has 10 days to produce it once requested and paid for. Build that into your conditional period rather than discovering it on day nine.
Frequently asked questions
What is a SPIS? The Seller Property Information Statement – an OREA form on which a seller answers set questions about the property. Completing one is a choice, and in the Toronto market it is a choice most sellers now decline.
What is an example of a disclosure statement? A typical form asks about roof age and leaks, water penetration and flooding, structural movement, asbestos or mould, unpermitted renovations, electrical and plumbing condition, well and septic on rural property, and any boundary disputes or easements.
Is a property disclosure statement mandatory in Ontario? No. It is standard practice in British Columbia, and voluntary here. Declining to sign one does not reduce what you are legally required to disclose.
Do sellers have to disclose damp or water damage? Yes, if it made the home unsafe or unfit, and yes to any direct question. Where the problem was repaired, hand over the invoices and any transferable warranty with the disclosure – that turns a liability into evidence that the house was properly looked after.
How do I write a disclosure statement? Answer only from actual knowledge, answer completely, and never guess. If you are unsure about something, say you are unsure rather than writing “no.” Have your lawyer review anything you sign before it goes to the buyer.
How do I obtain the disclosure package on a condominium in Ontario? Request the status certificate from the condominium corporation. It must be produced within 10 days of the request and payment, and it is the real disclosure document on a condo purchase. Build that timing into your conditional period.
Can a buyer sue for non-disclosure after closing? Only in limited circumstances: a hidden defect that made the property dangerous or unfit and that the seller knew about, active concealment, or a false answer to a direct question. Discovering a defect you could have found with an inspection is normally your own problem.
Can a seller back out of a conditional offer? Not simply because they changed their mind. Conditions generally exist for the benefit of the buyer, who may waive them. A seller who refuses to close faces a claim for damages and, potentially, an order compelling the sale.
Before you sign anything, talk to us
Zinati Kay has advised Ontario buyers and sellers for more than 25 years, with fixed closing costs and remote signing across the province. If you have been handed a disclosure form to complete – or a completed one to rely on – we will tell you what it actually commits you to.
416-321-8766 · john@zinatikay.com
General information about Canadian and Ontario law as of August 2026. Not legal advice.