When selling a home in Canada, the issue of disclosing defects has become a hot topic, particularly with the introduction of a new legal form. Sellers are now required to be more transparent about any problems with the property, such as water damage or faulty electrical systems. Failure to disclose these "latent defects" — issues that aren’t easily noticed by buyers — could result in serious legal consequences for sellers, including lawsuits.
The new form, which sellers must complete, asks specific questions about the property’s condition, focusing on latent defects. These could include anything from a leaky roof to foundation issues. While this aims to protect buyers, it puts sellers at risk if they overlook any hidden problems. If a buyer later discovers a defect that wasn't disclosed, the seller could be sued, even if they weren’t aware of the issue.
There’s also the matter of "patent defects," which are problems that are visible and should be noticed during a home inspection. Sellers don’t have to disclose these types of defects, but if a buyer fails to inspect the property carefully, they could still be stuck with costly repairs down the line. This creates a tricky situation for both buyers and sellers, where transparency and diligence are more important than ever.
For homeowners looking to sell, this new form has increased the pressure to ensure all defects are disclosed. Sellers might need to hire experts to thoroughly inspect their property before listing it. At the same time, buyers must be proactive and conduct thorough inspections to avoid any surprises. In this changing landscape, both parties need to understand their legal obligations and rights to avoid future legal disputes.
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