Key takeaways
- Closing does not automatically end every contractual or misrepresentation claim.
- An obvious defect and a concealed dangerous defect can raise very different legal issues.
- Sellers should answer questions truthfully and avoid guesses presented as facts.
- Notify your lawyer promptly if a complaint or demand arrives, and preserve the evidence.
Does buyer beware mean the seller has no responsibility?
No. Ontario resale transactions generally place responsibility on buyers to inspect and investigate, but that principle has limits. The agreement may contain a specific promise about condition, equipment or repairs. Misrepresentation, concealment and certain known latent defects can also support claims. [1]
The buyer’s complaint must be assessed against a legal basis for recovery. A system failing after closing does not by itself prove that the seller knew it would fail or promised that it would remain serviceable indefinitely.
Equally, a seller should not assume that an accepted offer without an inspection condition creates immunity from inaccurate statements or hidden serious problems. The facts and documents matter more than the label “firm offer.”
What is the difference between a patent and latent defect?
A patent defect is one that can be discovered through reasonable observation and inquiry. A latent defect is not readily apparent on a reasonable inspection. Serious hidden defects that make a home dangerous, potentially dangerous or unfit for habitation can raise disclosure obligations, particularly where the seller knows of them or is wilfully blind. [1]
Not every hidden repair issue meets the same legal test. A later-discovered stain, an aging appliance and a concealed structural danger do not automatically produce the same result.
If you know of an issue before selling, ask your lawyer whether and how it should be disclosed. Do not cover it up or give a broad assurance that goes beyond what you actually know.
Can something I say create liability?
Yes. Statements in a seller property information form, listing, email or direct answer may become important evidence. Whether the buyer can recover depends on matters such as what was said, whether it was inaccurate, the applicable duty, reliance and resulting loss. [2]
For example, there is a difference between saying, “We repaired a basement leak in 2024; here is the contractor’s invoice,” and making an unqualified claim that the basement has never had water problems. The first provides specific information. The second may be false if you know of the earlier leak.
The Ontario litigation in Krawchuk v. Scherbak illustrates that statements about property condition can lead to liability after a purchase. It does not mean every seller is responsible for every defect; it shows why accuracy in disclosure and answers matters. [2]
What if the agreement promises a repair or working appliance?
A contractual promise can create a claim independently of a general argument about defects. The first step is to read the exact term: what condition was promised, at what time, and whether the obligation survives closing. [3]
An agreement that requires an identified repair before closing must be evaluated differently from one that contains no such promise. Keep the repair scope, invoice, photographs and any written acceptance or amendment.
If a concern arises before closing, do not assume either party can unilaterally hold back money, refuse to close or impose a new repair obligation. Your lawyer can assess the agreement and discuss a documented solution with the other side.
Can a home inspection prevent every later claim?
No. An inspection is useful evidence about accessible conditions at a particular time, but it may not uncover a concealed problem. Nor does an inspection automatically remove a seller’s contractual promises or responsibility for an actionable misrepresentation. [1, 2]
For a seller responding to a claim, the inspection report can still be relevant. It may show what the buyer observed, what further investigation was recommended or whether the claimed issue was already known. Provide the full record to your lawyer instead of selecting only the passages that seem favourable.
What should I do if the buyer complains after closing?
Send the complaint to your lawyer promptly. Keep the agreement, amendments, disclosure forms, messages, inspection documents, maintenance records and repair evidence. Record your recollection while it is fresh.
Avoid admitting liability, making a payment promise or agreeing to repairs before getting advice. At the same time, a demand letter should not be ignored. Your lawyer may request photographs, expert findings and a clear explanation of the loss claimed, then assess whether negotiation, insurance notification or a formal response is appropriate.
Time limits can affect a claim. Many Ontario damages claims have a basic two-year limitation period from when the claim is discovered, or ought reasonably to have been discovered. Other statutory limits and exceptions can apply. This is not a two-year warranty starting on closing. [4, 5]
About the author — Kubeskaran Navaratnam
Kubeskaran Navaratnam is the Managing Partner of iClosed and a lawyer licensed by the Law Society of Ontario (LSO #60539H, licensed since 2011). His practice is Ontario residential real estate, acting for buyers, sellers and lenders on resale, new-build and condominium closings across the Greater Toronto Area. His Law Society record can be verified at https://lsodirectory.lso.ca/en-US/licensee-detail/?lawsocietynumber=60539H. This article is general information about Ontario law and practice, not legal advice. It does not create a lawyer-client relationship. For advice on your own transaction, speak with a licensed Ontario real estate lawyer.
Sources
1. RECO — Bulletin 7.4 Facts a seller has a legal obligation to disclose. — https://www.reco.on.ca/agents-and-brokerages/reco-bulletins/reco-bulletin-7-4-facts-a-seller-has-a-legal-obligation-to-disclose/
2. Supreme Court of Canada — Krawchuk litigation case information and lower-court rulings file 34359. — https://www.scc-csc.ca/cases-dossiers/search-recherche/34359/
3. Law Society of Ontario — Residential Real Estate Transactions Practice Guidelines. — https://lso.ca/lawyers/practice-supports-and-resources/practice-area/real-estate-law/residential-real-estate-transactions-practice-guid
4. Ontario — Civil claims and limitation periods. — https://www.ontario.ca/page/civil-claims-suing-and-being-sued
5. Ontario — Limitations Act, 2002, sections 4 and 5. — https://www.ontario.ca/laws/statute/02l24
This article provides general information about Ontario law and closing practice as of October 26, 2026. It is not legal or tax advice and does not create a lawyer-client relationship. Your agreement of purchase and sale, your lender’s instructions and your own circumstances control what applies to you. Rates, thresholds and rules change — confirm current figures before relying on them.