Is the Seller of a House Required to Tell the Buyer That the House Is Haunted?

Few Cases Address the Legal Issues Involving Rumoured Haunted Houses; However, It Does Appear That the Manner In Which Rumours Are Spread May Result In Liability For Stating That a House Is Haunted and Thereby Causing a Reduced Property Value.

Understanding the Law Regarding Disclosure Obligations When Selling a House Perceived As Haunted

Haunted House The case of 1784773 Ontario Inc. v K-W Labour Association et al, 2013 ONSC 5401 suggests that a seller who jokes about selling a haunted house will be without liability if the seller is subsequently sued by the buyer for failure to disclose the haunted status.

In the 1784773 Ontario Inc. case, the litigation alleged that, following sale of a house, the seller publicly stated that the house was haunted.  The buyer, concerned that rumours of the haunted status may cause a stigma with resulting harm in the form of reduced property values and the claim sought compensation for failing to disclosure the haunted status during the sales negotiations.

The Law

On the issue of proper disclosure within realty transactions, the law in Canada appears clear that the seller has a duty to disclose to the buyer any latent defects in the property that may pose a danger or make the house uninhabitable.  This rule was established by the Ontario Court of Appeal in the case of McGrath v. MacLean et al., 1979 CanLII 1691.

As for the concern involving failure to disclose that a house is haunted, the court in the 1784773 Ontario Inc. case determined that as the statements regarding the haunted status were made jokingly and the Plaintiff was without actual evidence to prove that the house was actually haunted, the case was dismissed.  Of course, it is interesting to wonder what the decision of the court would be if some evidence of paranormal activity was available.  Another interesting case involving a haunted house, was the Manitoba Free Press v. Nagy, [1907] S.C.R. 340 decision of the Supreme Court of Canada which involved allegations of negligence against a newspaper for publishing an article suggesting that a vacant house was haunted and thereby causing a reduction in the property value of the house.

Need Help? Let's Get Started Today

ATTENTION: Do not send any confidential information through this web form.  Use this web form only to make an introduction.

DK Legal Practiceis an affordable Paralegal in:

For more information, fill out the form below to send a direct inquiry to DK Legal Practice

ATTENTION: Confidential details about your case must not be sent through this website.  Use of this website does not establish a legal-representative/client relationship.  Do not include confidential details about your case by email or phone.  Use this website only for an introduction with a DK Legal Practice representative.
Privacy Policy & Cookies | Terms of Use Your IP Address has been logged as: 54.80.249.22
DK Legal Practice

700 Dorval Drive, Suite 700
Oakville, Ontario,
L6K 3V3

P: (416) 906-6663
E: info@dklegalpractice.ca

Business Hours:

9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
9:00AM – 5:00PM
Monday:
Tuesday:
Wednesday:
Thursday:
Friday:

By appointment only.  Please call for details.








Sign Up