Key Disclosure

Understand key disclosure in Canadian real estate — what sellers must reveal, why it matters to buyers, and how it affects legal protections during property sales.

Key Disclosure

May 22, 2025


What is Key Disclosure?

Key disclosure refers to the seller’s obligation to disclose material facts or known defects about a property that could affect a buyer’s decision to purchase.

Why Key Disclosure Matters in Real Estate

In Canadian real estate, sellers are required to disclose **latent defects**—issues not visible through ordinary inspection that pose health, safety, or legal risks.


Examples of key disclosures include:
  • Previous flooding or foundation issues
  • Illegal renovations or permits not obtained
  • Mold, asbestos, or environmental hazards


Failure to disclose can lead to legal action for misrepresentation or breach of contract. Some provinces use standard Seller Property Information Statements (SPIS) to formalize disclosure.


Understanding key disclosure protects buyers from hidden problems and holds sellers accountable for property condition transparency.

Example of Key Disclosure in Action

A seller discloses a history of basement flooding on the SPIS form. The buyer proceeds with caution and includes a repair clause in the offer.

Key Takeaways

  • Sellers must disclose material issues.
  • Includes hidden defects and legal risks.
  • Protects buyers from surprise problems.
  • May involve formal disclosure forms.
  • Legal remedies exist for nondisclosure.

Related Terms

  • Material Defect
  • Latent Defect
  • Seller Disclosure Statement
  • Home Inspection
  • Agreement of Purchase and Sale

Additional Terms

Sales-To-New-Listings Ratio (SNLR)

The Sales-To-New-Listings Ratio (SNLR) is a real estate metric that compares the number of homes sold to the number of new listings in a given period.. more

Market Type

Market type refers to the classification of a real estate market based on supply, demand, and pricing trends, typically categorized as buyer’s,. more

Outparcels

Outparcels are stand-alone commercial properties located near or on the outer edge of a larger retail or shopping centre complex.. more

Halo Effect

The halo effect in real estate refers to the positive influence that a popular or high-end development has on the surrounding property values and. more

Sump Pump

A sump pump is a mechanical device installed in the lowest part of a basement or crawl space to remove accumulated water and prevent flooding.. more

Structural Integrity

Structural integrity refers to a building’s ability to withstand its intended loads without failure, deformation, or collapse during its lifecycle.. more

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