What’s a property disclosure statement?
Want to avoid a legal nightmare when selling in Georgetown, ON? Read this now: What’s a property disclosure statement — and how it can make or break your sale.
Why every Georgetown home seller must care
You can list a home, get an offer, and sign an agreement — then get blindsided. Buyers discover a problem. Lawsuits follow. Deals collapse. Money and reputation vanish.
A property disclosure statement is your frontline defense. It’s the paper trail that tells buyers what you know about the house. In Georgetown, ON, that matters more than ever because local issues — flood risk, older stone foundations, unfinished basements — pop up on inspection reports.
This post cuts through the fluff. I’ll explain exactly what a property disclosure statement is, how Ontario law treats it, what local Georgetown red flags to disclose, how to fill it out without hurting your sale, and the exact checklist to protect yourself legally and financially.
What a property disclosure statement actually is
A property disclosure statement is a written document where the seller answers specific questions about the condition, history, and legal status of the property. It usually covers:
- Structure: foundation, roof, walls
- Water: past flooding, sewage backups, drainage problems
- Systems: heating, electrical, plumbing
- Renovations and permits
- Environmental issues: mold, asbestos, underground tanks
- Legal matters: easements, zoning violations, encroachments, outstanding work orders
It’s honest, specific, and signed. It’s not an inspection report. It’s your knowledge on record.
Ontario law — practical reality (not legal advice)
Ontario does not force sellers to complete one single provincial “mandatory” disclosure form for every sale. However, the legal principle is simple and strict: sellers must not knowingly misrepresent the property or hide material latent defects.
What that means in practice:
- If you know about a material defect and you don’t disclose it when asked, you can face legal claims after closing.
- Realtors and brokers in Ontario must avoid misrepresentation. The Real Estate Council of Ontario (RECO) enforces rules for registrants.
- Buyers rely on seller answers. Courts often side with buyers when sellers had knowledge of serious defects and stayed silent.
Bottom line: be accurate. If you don’t know, say so. If you’re unsure about legal obligations, consult a real estate lawyer.
Standard forms — what agents use in Ontario
Many agents use a Seller Property Information Sheet (SPIS) or similar form. It’s not a magic shield, but it’s the most practical way to document disclosures. Typical practice in Ontario:
- Complete the SPIS honestly and attach it to the Agreement of Purchase and Sale when feasible.
- Keep a signed copy. If a dispute arises, the signed SPIS is evidence of what you told the buyer.
Using a standardized disclosure form reduces ambiguity. It’s plain, fast, and expected by buyers and lawyers.
Georgetown-specific issues to disclose
Georgetown sellers should be extra careful about local risks. Here are common issues that come up in Georgetown, ON:
- Flooding and water entry: Parts of Georgetown sit near rivers and low-lying areas. Disclose past basement flooding, water stains, sump pump installation, or sewer backups.
- Heritage and older construction: Older stone and brick foundations, heritage-designated homes, and older wiring/plumbing often need disclosure.
- Renovations without permits: Renovations done without permits are a legal risk. Disclose known unpermitted work.
- Septic or well systems: If your property has a private well or septic system, disclose maintenance history and problems.
- Boundary and driveway disputes: Any ongoing neighbour disputes or encroachments should be revealed.
- Environmental or municipal orders: If Halton Region or the town has issued property standards, zoning, or conservation authority orders, disclose them.
Local buyers, lawyers, and lenders expect this transparency. Hiding any of it invites later claims.
What sellers often miss — and how to avoid it
Mistakes that cost sellers money:
- Saying “no” when the answer should be “I don’t know.” If you’re unsure, state it. Don’t guess.
- Forgetting past issues fixed by a contractor. The fact that it was repaired doesn’t erase the existence of the problem.
- Not attaching a signed disclosure to the purchase agreement.
- Ignoring tenant or rental agreements on the property.
Avoid these by creating a single file with invoices, permits, contractor warranties, and the signed disclosure statement.
How to complete a disclosure statement — step-by-step
- Gather documents: permits, invoices, warranties, septic/well records, municipal letters.
- Walk the property room by room and answer honestly. If you can’t remember, check records or write “unknown.”
- Include dates and names where relevant — e.g., “sump pump installed April 2018 by ABC Plumbing.”
- Attach supporting documents: receipts, permits, inspection reports, warranties.
- Sign and date. Have your agent sign as well, if required.
- Provide a copy to the buyer at or before signing the agreement. Keep a copy.
This simple process takes time up front and saves money later.
If a buyer asks you after you’ve moved out
Buyers sometimes ask additional questions after closing. If you get a post-closing request or notice of a problem, forward it promptly to your lawyer and your realtor. Don’t improvise answers. Legal counsel will tell you how to react.
How full disclosure affects sale outcomes
- Faster closings: Buyers who trust the seller waive fewer conditions, or feel safer accepting offers.
- Higher buyer confidence: Transparent disclosures reduce renegotiations after inspection discoveries.
- Lower legal risk: Honest answers reduce the grounds for post-sale legal action.
Conversely, hiding facts slows deals, fuels renegotiation, and multiplies legal risk.
A seller checklist for Georgetown, ON
- Signed Seller Property Information Sheet (SPIS)
- Records of any past flooding or drainage work
- Copies of building permits and occupancy permits
- Contractor invoices and warranties
- Septic and well inspection reports (if applicable)
- Details of any municipal orders or bylaw notices
- Lease or tenancy agreements
- Proof of property tax payments and any arrears
- Photos of problem areas and repairs with dates
Give this packet to your lawyer and include a copy with your listing notes.
Legal risk and limits — know the boundaries
A disclosure statement protects when used properly, but it’s not a legal shield for fraud. If you intentionally conceal a material defect or lie, disclosure won’t save you. Also, some defects are considered “latent” — hidden and not discoverable by a buyer’s pre-purchase inspection. If you knew about one of these and did not disclose it, you can be liable.
Always consult a real estate lawyer if you suspect a legal problem. This blog is for information, not legal advice.
How a local realtor helps — beyond the paper
A local Georgetown realtor will:
- Know common neighbourhood issues (flood zones, heritage rules, municipal quirks)
- Help gather records and create the disclosure packet
- Advise on wording that is accurate and reduces risk
- Ensure the SPIS is attached to the agreement and shared with the buyer
A good realtor protects your sale and reduces the time you spend chasing documents.
Immediate action plan — 48-hour list
If you’re selling now in Georgetown:
- Order or find past inspection reports and municipal letters.
- Complete the Seller Property Information Sheet truthfully.
- Compile invoices and permits into a digital folder.
- Share the packet with your realtor and your lawyer.
- Keep a signed copy for your records.
Do this now. It saves time and money later.
Contact for local help
Selling in Georgetown, ON and need help with your legal paperwork or disclosure packet? Get local, practical support:
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
Your agent should be local, direct, and experienced with Georgetown specifics. If you want a document review or a checklist sent to your inbox, reach out.
FAQ — Common buyer and seller questions in Georgetown, Ontario
Q: Is a property disclosure statement mandatory in Ontario?
A: No single mandatory provincial form applies to every sale, but sellers must not knowingly misrepresent the property or hide material defects. Using a Seller Property Information Sheet is standard practice and strongly recommended.
Q: Do I have to disclose a past basement flood?
A: Yes. Past flooding is a material fact buyers and lenders care about. Disclose history, repairs, and guarantees if any.
Q: What if the renovation was done without a permit?
A: Disclose it. Unpermitted work creates risk. Your lawyer and buyer will decide how to handle it during the sale.
Q: Can I say “I don’t know” on the disclosure?
A: Yes. If you truly don’t know, state that. Guessing opens you to claims.
Q: Will disclosure hurt my sale price?
A: Not necessarily. Honest, documented fixes often reassure buyers. Concealment that surfaces later will almost always cost more.
Q: What local records should I check in Georgetown?
A: Municipal property files, building permit history, conservation authority restrictions, and any outstanding bylaw or property standards orders.
Q: If a buyer sues after closing, can my disclosure protect me?
A: A truthful, signed disclosure form is strong evidence in your favour, but it doesn’t protect intentional fraud. Always consult a lawyer.
Q: Do condos follow the same rules?
A: Condos have additional documents (status certificates, condo bylaws) that you must disclose. Include the condo documents with your sale package.
Q: Should I hire a lawyer before I fill out the disclosure?
A: It’s wise to consult a real estate lawyer if you suspect legal exposure or unpermitted work. For routine properties, your agent can guide you on how to complete the form.
Q: How long should I keep the disclosure documents?
A: Keep them indefinitely. If a dispute arises years later, the original signed documents matter.
If you want a local checklist tailored to your Georgetown property, email tony@sousasells.ca or call 416-477-2620. I run through this packet with sellers every week — and I’ll send a ready-to-fill disclosure packet you can use today.
Disclaimer: This post provides general information about property disclosure statements and Ontario practice. It is not legal advice. For legal questions about your specific situation, consult a licensed Ontario real estate lawyer.
