What is a Disclosure Statement

disclosure statement

Latent Defects

A Seller is under an obligation in law to disclose latent defects such as disclosing if the property is dangerous or likely to be dangerous or unfit for habitation (ie: mould issues etc.)

A seller is not liable for a latent defect unless the sell had full  knowledge of such defect. However on the other hand from the date of signing the agreement of sale and purchase and prior to closing all known deficiencies must be disclosed by the seller to the purchaser.

Marijuana Grow Operation

The Police maintain a list of marijuana grows operations but there is no public database of suicides, murders or other crimes.

A seller must disclose if a grow op when:

  1. There is an actual material latent defect of which the seller knows or ought to have known;
  2. The buyer asks a specific question or expresses a specific concern;
  3. The Agreement of Purchase and Sale contains representations that the property was not used as a grow op or for criminal activity; or
  4. There are some statutory and or regulatory requirement for such disclosure to be made.

As a buyer, you should ask as many questions as possible and complete due diligence on the property prior to signing the Agreement of Purchase and Sale. If it is not in writing it does not exist.

Feel free to ask further questions and legal advice by real estate lawyer Mississauga

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