Buying a home is one of the biggest financial decisions most people make — and when something goes wrong, it can be both financially and emotionally draining. One of the most frustrating situations a buyer can face is discovering a serious hidden defect after closing. So, the big question is:
Can you sue a seller in Ontario for hiding defects?
Yes — but only if you can prove it.
What Is Considered a “Hidden Defect”?
A hidden defect, also known as a latent defect, is a problem with the property that:
Was not visible or discoverable during a reasonable inspection
Significantly impacts the use or value of the home
Was known to the seller and not disclosed
Examples include:
A leaking foundation or basement
Hidden water damage behind walls
Electrical issues not visible during walkthroughs
Previous flooding or fire damage that wasn’t reported
When Can You Sue the Seller?
If the seller knew about a serious issue and intentionally failed to disclose it, you may have legal grounds to sue under:
Misrepresentation
Fraudulent concealment
These are serious legal claims and require proof — not just that the defect exists, but that the seller was aware of it and chose not to disclose it.
What Could You Be Compensated For?
If your claim is successful, the court may award you compensation for:
The cost of necessary repairs
Loss in property value
Legal fees and related expenses
However, not every post-closing issue qualifies. For example, general wear and tear or issues that could have been discovered during a home inspection may not be grounds for a lawsuit.
What Should You Do If You Find a Serious Defect?
If you've recently taken possession of a home and discovered a major issue:
Document everything — photos, emails, inspection reports, receipts.
Do not delay — there's a limited time to take legal action.
Consult a real estate lawyer immediately to review your options.
Timing, documentation, and professional legal advice are critical in these situations.
Final Thoughts
Discovering hidden defects after buying a home can be overwhelming — but in some cases, the law is on your side. Just remember, proof of knowledge and concealment is key to any successful legal action against a seller in Ontario.
DISCLAIMER
The content provided is for informational purposes only and is based on information available at the time during which it was created. No recommendations are express or implied either directly or indirectly. Do not rely on this content to make business or financial decisions or decisions otherwise. Always consult with a professional to seek advice relevant to your individual situation. Not intended to solicit contracted clients.