Yes No Share to Facebook
Selling Haunted Houses
Involves Concerns For Lawsuits Alleging Failure of Disclosure
Question: Is a seller legally required to disclose if a house is haunted in Canada?
Answer: While Canadian law mandates sellers to reveal latent defects that may affect a property's safety or usability, disclosing a suspected haunting isn't legally required. However, spreading rumours about a haunted property, as seen in 1784773 Ontario Inc. v. K-W Labour Association et al, 2013 ONSC 5401, can lead to legal issues. Avoid potential disputes by maintaining full disclosure on material defects when selling a home. Need guidance?
Answer: Contact Olson Craig Legal for a free consultation to ensure peace of mind during your real estate transactions.
Is a Seller Legally Required to Tell a Buyer That a House Is Haunted?
Although It Is Unlikely That a Seller Would Be Sued Subsequently Spreading Rumours That a House Was Haunted a Seller Can Best Avoid Hassles By Providing Full Disclosure to Buyer and Refraining Making Comments That May Stigmatize the Property.
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. In another legal dispute regarding a haunted house, the case of Manitoba Free Press v. Nagy, [1907] S.C.R. 340, was reviewed by the Supreme Court of Canada following allegations of that a newspaper for published an article containing suggestions that a vacant house was haunted.
Summary Comment
Although the likelihood of being sued for spreading rumours that a house is haunted is unlikely, sellers, among others, are best to avoid the risk of a legal hassle by providing full disclosure when selling a property. Subsequently, avoiding the spread of rumours about the property is wise.
NOTE: A considerable amount of online searches featuring “lawyers near me” or “best lawyer in” usually indicate a desire for prompt and effective legal support rather than a particular designation. In Ontario, the same Law Society that governs lawyers also regulates licensed paralegals, allowing them to advocate for clients in specific litigation scenarios. Skills in advocacy, legal assessment, and procedural knowledge are foundational to this position. Olson Craig Legal provides legal representation within its authorized framework, focusing on strategic planning, evidence preparation, and compelling advocacy to achieve swift and positive outcomes for clients.