Last Updated: , 74 days ago.
In Ontario, do I legally have to tell a home buyer if a house is haunted?
In Ontario, a seller generally must disclose material, latent issues that could make the property unsafe or unfit for the buyer’s intended use, but there is no clear rule that “haunted” status must always be disclosed; in 1784773 Ontario Inc. v K-W Labour Association, 2013 ONSC 5401, the claim tied to alleged haunted rumours was dismissed partly because the statements were framed as a joke and the buyer couldn’t prove the haunted condition. Because wording matters and rumours can create stigma or dispute risk, it’s usually safest to make full, accurate disclosures during the sale and avoid comments that could be read as asserting unverified claims; for guidance tailored to your file, paralegals and lawyers at Benchmark Legal Offices can help you plan what to disclose in your real estate documents, call (289) 389-8840 for support across Ontario.
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Is the Seller of a House Required to Tell the Buyer That the House Is Haunted?
There Are Few Cases Involving Rumoured Haunted Houses; However, It Does Appear That the Manner In Which Rumours Are Spread May Result In Liability For Stating That a House Is Haunted and Thereby Causing a Reduced Property Value.
Note: For immediate help, please contact Benchmark Legal Offices by phone at: (289) 389-8840 to retain services or to discuss any specific questions that you may have.
Understanding the Law Regarding Disclosure Obligations When Selling a House Perceived As Haunted
In the case of 1784773 Ontario Inc. v K-W Labour Association et al, 2013 ONSC 5401, a seller was subsequently sued by the buyer when the seller spread rumours that the house was haunted and that such was a detail the seller failed to previously disclose to the buyer. The buyer, concerned that rumours of the haunted status may cause a stigma with resulting harm in the form of reduced property values and the claim sought compensation for failing to disclosure the haunted status during the sales negotiations.
The Law
On the issue of proper disclosure within realty transactions, the law in Canada appears clear that the seller has a duty to disclose to the buyer any latent defects in the property that may pose a danger or make the house 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 that a house is haunted, the court in the 1784773 Ontario Inc. case determined that as the statements regarding the haunted status were made jokingly and the Plaintiff was without actual evidence to prove that the house was actually haunted, the case was dismissed. Of course, it is interesting to wonder what the decision of the court would be if some evidence of paranormal activity was available. Another interesting case involving a haunted house, was the Manitoba Free Press v. Nagy, [1907] S.C.R. 340, decision of the Supreme Court of Canada which involved allegations of negligence against a newspaper for publishing an article suggesting that a vacant house was haunted and thereby causing a reduction in the property value of the house.
Summary Comment
The chances of getting sued for spreading a rumour that a house is haunted is slim, a former owner of a house should avoid spreading rumours that may adversely affect the value of the property. A seller limits the risk of legal trouble by providing proper disclosure during the selling process and thereafter keeping quiet.
