In Ontario, a vendor is under no obligation to disclose that a murder, suicide, or paranormal activity has (or is rumored, or perceived to have) occurred at a property. Instead the principle of caveat emptor, or “buyer beware” applies.
Real estate agents, however, are governed by RECO and their local real estate associations, which require them to disclose any material facts that affect the market value of the property that they are aware of, including whether the property is “stigmatized”.
A property is considered stigmatized when its value is, or could be, affected by a history of murder, suicide, or haunting. With respect to the latter, this is so even though there is no scientific or physical proof of ghosts.
If the listing agent knows the property is stigmatized, they are required to disclose it to potential buyers or their agents.
While we cannot help with hauntings, the real estate law team at Daniel & Partners LLP can help you close your real estate transaction. They can also assist if you have purchased a home in reliance upon misrepresentations or have found latent defects in a property that were not disclosed to you. Please contact us to set up an appointment.
Article written by Sarah J. Draper