Understanding Property Defects in Mississauga Real Estate

Property defects generally fall into two categories: patent defects and latent defects.

Patent defects are those that can be easily discovered by the purchaser or by a professional inspector. Latent defects, on the other hand, are not known to the buyer and, in most cases, are also unknown to the seller. These defects are often hidden and cannot be easily revealed, even during a thorough inspection.

Seller Disclosure Obligations

Sellers are not obligated to disclose patent defects since they are assumed to be detectable by the buyer. Similarly, sellers do not have to disclose latent defects if they are unaware of them. However, if a seller has knowledge of a latent defect, they may be legally required to disclose it, particularly if the defect renders the property unfit for habitation, poses a potential danger, or significantly reduces the property’s value due to repair costs.

Failing to disclose a known latent defect can be considered fraud. Because of this, questions often arise about what information a seller must provide, especially when it could affect a property’s value or desirability. A real estate lawyer in Mississauga can guide both buyers and sellers on disclosure obligations to ensure compliance with legal requirements.

Factors Affecting Property Value and Desirability

Certain circumstances can impact a property’s value or desirability, even if they are not physical defects. For instance, a property may lose value if it was previously the site of criminal activity, if a violent crime occurred there, or if a convicted offender lives nearby. These situations, known as stigmatized properties, typically do not require disclosure unless they make the property dangerous or unfit for habitation.

Similarly, properties previously used for illegal purposes, such as a drug grow-op, do not automatically require disclosure. However, if the prior use left the property in a hazardous condition or uninhabitable state, the seller must disclose this as a latent defect.

Legal Guidance for Property Defects

Whether you are buying or selling a property in Mississauga, understanding defect disclosure rules is crucial. A real estate lawyer in Mississauga can help determine what information must be disclosed and guide you through any disputes related to property defects. Consulting a lawyer ensures your transaction is legally sound and protects your financial interests.