How Long Are You Liable After Selling Your Home in Ontario? Here’s What You Need to Know
You’ve accepted an offer, signed the paperwork, and handed over the keys — time to celebrate and move on, right?
Well… not quite.
What many sellers don’t realize is that legal responsibilities can follow them after the deal closes. And if certain details are missed — like failing to disclose a material issue — those responsibilities can turn into real problems months, or even years, down the line.
Here’s what you need to know about disclosure, liability, and how to protect yourself after selling your home in Ontario.
What Is Due Diligence (and Why Does It Matter)?
Due diligence means taking reasonable steps to understand your legal obligations and share accurate information about the property you’re selling. As your Realtor, I have a legal and ethical responsibility under the REBBA 2002 Code of Ethics to verify key details about your home, so both you and the buyer are protected throughout the transaction.
When we work together, I ensure we review all relevant property information, past upgrades, repairs, known issues, and any potential red flags before listing. The more thorough we are upfront, the lower the risk of legal trouble later.
What Do I Actually Need to Disclose?
Ontario law requires sellers to disclose any known material latent defects. These are issues that are not immediately visible but could seriously impact the value, function, or safety of the property. This includes things like water damage, foundation issues, mould, or outdated electrical.
Disclosure goes beyond physical concerns — if your home has a history of flooding, difficult neighbours, or past illegal activity, you may need to make that information known as well.
To make things easier and more transparent, we often recommend completing a Seller Property Information Statement (SPIS). While optional, it helps create clarity for everyone involved and serves as additional protection for you post-sale.
Do I Need a Pre-Listing Home Inspection?
While not required, a pre-listing inspection can be one of the best things you do before selling. It allows us to identify issues in advance, gives you the opportunity to address or disclose them, and helps avoid last-minute surprises that could delay or derail your sale.
An inspection also builds trust with buyers by showing them you have nothing to hide. Once an issue is identified, however, it must be disclosed — so it’s important to review the report carefully with your real estate professional and decide what should be fixed, disclosed, or both.
Common Legal Issues That Can Arise After Closing
Even after closing, sellers can be held legally responsible if something serious was not properly disclosed or documented. Here are some common issues that can lead to post-sale disputes:
Undisclosed damage or material defects
Hidden structural or water issues
Outstanding liens or unpaid contractor bills
Disputes over easements, encroachments, or property boundaries
Title issues that were not caught or corrected
Environmental concerns such as asbestos or oil tanks
Vague contract terms that leave room for misinterpretation
In Ontario, the limitation period to bring a lawsuit is typically two years — but that clock starts from the time the issue is discovered, not necessarily the date of sale. That means a buyer could come back months or even years later if they find a problem and believe it was concealed.
How to Protect Yourself as a Seller
The best way to protect yourself from liability is to work with an experienced real estate team who understands the legal and logistical complexities of selling a home. Here’s what that looks like in practice:
Conducting thorough due diligence
Ensuring all known issues are disclosed clearly and properly
Discussing and reviewing pre-listing inspection results
Drafting clean, well-defined contracts
Helping you decide whether title insurance or additional legal protections make sense
Being transparent and organized throughout the process not only reduces legal risk — it builds trust and keeps your transaction on track.
Final Thoughts
Selling your home is a major life event, and it’s important to understand the full scope of your responsibilities — even after the deal closes. The good news? With the right team in your corner, you can navigate these complexities with confidence.
My role is to guide you through every step of the process, make sure nothing falls through the cracks, and help you avoid the kind of surprises that lead to post-sale stress. If you're preparing to sell or simply want clarity on what’s involved, I’m always here to help.
Let’s make sure your sale is not just successful — but secure, too.