Does the Duty to Disclose Latent Defects In a Property Include a Requirement to Inform Buyers That a House Is Haunted?

Haunted House The case of 1784773 Ont. Inc. v K-W Labour Association et al, 2013 ONSC 5401 suggests that a seller who jokes about selling a haunted house will be without liability if the seller is subsequently sued by the buyer for failure to disclose the 'haunted' status.

In the case referenced above, it seems that following sale of a house, the seller publicly made comments stating that the house was haunted.  The buyer, concerned that the 'haunted' status may cause a stigma with resulting harm in the form of reduced property values, brought claim against the seller for failing to disclosure the 'haunted' status during the course of sales negotiations.

On the issue of proper disclosure within realty sales transactions, the law in Canada appears quite clear that that the seller has a duty to disclose to the buyer any latent defects in the property that may pose a reasonable danger or make the home uninhabitable.  This rule was established by the Ontario Court of Appeal in the case of McGrath v. MacLean et al., 1979 CanLII 1691.

As for the concern involving failure to disclose a 'haunted' house, the court determined that as the statements regarding the 'haunted' status were made jokingly and the Plaintiff was without availability of evidence to support the 'haunted' status of the house, there was no genuine issue requiring a trial and the case was dismissed.  Of course, it is interesting to wonder what the decision of the court would be if some evidence, or even a genuine suspicion, had existed.  Another interesting case involving 'haunted houses' was the Manitoba Free Press v. Nagy, [1907] S.C.R. 340 decision of the Supreme Court of Canada involving a negligent publication allegation against a newspaper that published an article suggesting that a vacant house was haunted thereby causing a reduction in the property value.

Grant Winegarden Paralegal Professional Corporation provides affordable legal services for clients located in St. Thomas, Port Bruce, Elgin County, Muncey, Wallacetown, among other places!

Do You Have a Case? Let's Get Started Today

ATTENTION: Do not send any confidential information through this website form.  Use this website form only for making an introduction.

For more information, fill out the form below to send a direct inquiry to Grant Winegarden Paralegal Professional Corporation

ATTENTION: Confidential details about your case must not be sent through this website.  Use of this website does not establish a legal-representative/client relationship.  Do not include confidential details about your case by email or phone.  Use this website only for an introduction with a Grant Winegarden Paralegal Professional Corporation representative.
Grant Winegarden Paralegal Professional Corporation

456 Talbot Street
St. Thomas, Ontario
N5P 1B9

P: (519) 633-9594
E: jgrant@grantparalegal.ca

Hours of Business:

9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
Monday:
Tuesday:
Wednesday:
Thursday:
Friday:

By appointment only.  Please call for details.







Logo: Grant Winegarden Paralegal Professional Corporation
Grant Winegarden
Paralegal

SSL Secured
Trust https://grantwinegarden.legal


Animated Spinner