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.
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
- Property Disclosure Statement
- Material Defect
- Home Inspection
- Agreement of Purchase and Sale
- Legal Liability
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)