Seller Disclosure Statement

Understand the purpose of a Seller Disclosure Statement in Canadian real estate, what sellers must reveal, and how it protects all parties in a transaction.

Seller Disclosure Statement

May 22, 2025


What is a Seller Disclosure Statement?

A Seller Disclosure Statement is a document completed by the property seller to disclose known material defects or issues that may affect the property's value or safety.

Why Do Seller Disclosure Statements Matter in Real Estate

While disclosure requirements vary by province, many Canadian real estate transactions include a Seller Disclosure Statement to promote transparency and reduce the risk of post-sale disputes.


The document may address:
  • Structural or mechanical problems
  • Past water damage, mold, or infestations
  • Renovations or permit issues
  • Neighbourhood nuisances or zoning concerns


Buyers rely on these disclosures to assess risk and make informed offers. If a seller knowingly omits or misrepresents key information, they may be held legally responsible—even after closing.


The statement is usually reviewed alongside the purchase agreement, and buyers may request additional inspections or price adjustments based on disclosed issues.


Understanding this document protects buyers from hidden liabilities and encourages sellers to disclose in good faith.

Example of a Seller Disclosure Statement 

A seller completes the disclosure form and notes a previous roof leak that was professionally repaired in 2021, allowing the buyer to assess the home’s condition accurately.

Key Takeaways

  • Discloses known property defects or issues.
  • Encourages transparency in transactions.
  • May be required or recommended.
  • Protects both buyers and sellers.
  • Should be reviewed alongside inspections.

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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