In Ontario, purchasing a home is often the largest investment you’ll ever make. Yet, even after diligent inspections, some problems-known as latent defects-may not reveal themselves until after you’ve moved in. Latent defects are hidden flaws not discoverable through a standard visual inspection. In this example we will consider electrical issues concealed behind walls, including outdated knob and tube wiring.
Ontario law generally follows the principle of caveat emptor – meaning buyer beware. For this reason, it is typically recommended to obtain a home inspection prior to a home purchase. However, latent defects can have some important exceptions to the rule. Sellers are legally obligated to disclose any known latent defects, including defects that render a property dangerous, or if they misrepresent the truth when asked direct questions. For instance, if a seller knows about a serious electrical issue, such as knob and tube wiring that poses a fire hazard and fails to disclose it or misrepresents the state of their electrical, they may be liable for damages to the purchaser.
Knob and tube wiring is still found in many older Ontario homes. While not illegal, it is considered a fire risk, incompatible with modern appliances, and can make obtaining home insurance difficult or expensive. If you, as a purchaser, discover after closing that the seller knew about such wiring and failed to disclose it, you may have grounds for legal action. Ontario courts have held that sellers are liable if they were aware of the defect and wilfully concealed it, or if the defect renders the property dangerous or uninhabitable and such risks were known to the seller. If you can prove the seller’s knowledge and failure to disclose, you may be entitled to claim for damages, so speaking with a trusted legal professional is critical to understanding your rights.
If you discover a latent defect such as undisclosed knob and tube wiring, you should act promptly. Start by gathering as much evidence as possible, including photographs of the defect and any correspondence you had with the seller or their real estate agent regarding the condition of the property. Next, consult a trusted legal professional who can review your situation, advise you on your legal options, and help you determine whether you have a strong case. It’s also helpful to obtain an expert opinion, such as a report from a licensed home inspector, to clearly establish the extent of the defects and any associated safety risks. By taking these steps, you can better protect your interests and ensure that you have a solid foundation for any potential legal action.
While buyers must exercise due diligence, Ontario law protects purchasers from undisclosed, dangerous latent defects. If you believe a seller failed to disclose a known issue, you are encouraged to seek legal advice promptly to protect your investment.
If you are looking for a legal office to facilitate your home purchase or sale, consider reaching out to Liddiard Law today at (905) 932-5437!
Michael Liddiard, BA MA JD
[email protected]
3305 Harvester Road, Unit 4
