Selling Haunted Houses

Question: When selling a house in Ontario, do I have to disclose that it is haunted to avoid legal trouble?

Answer: Denali Paralegal can help Ontario homeowners understand real estate disclosure duties, including when a “haunted” claim must be disclosed versus when it’s safer to avoid repeating rumours without evidence. In Ontario, sellers generally must disclose latent defects that could make the property unsafe or unfit for its intended use, and courts have looked at whether a seller’s statements were actually made as fact versus joking, plus whether the buyer had proof of a real issue (for example, 1784773 Ontario Inc. v K-W Labour Association, 2013 ONSC 5401).   Even if a lawsuit about a haunted rumour is less likely, the practical, lower-risk approach is to provide full, accurate disclosure during negotiations, avoid stigmatizing comments about the property, and have your file reviewed before the sale closes; call (877) 414-4377 for guidance from a paralegal supporting limited scope family law services in Ontario.

Add this website to Google Preferred Sources

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

Although It Is Unlikely That a Seller Would Be Sued Subsequently Spreading Rumours That a House Was Haunted a Seller Can Best Avoid Hassles By Providing Full Disclosure to Buyer and Refraining Making Comments That May Stigmatize the Property.

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

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 may be subsequently sued by the buyer for failure to disclose the haunted status.  Subsequently, the buyer brought at a lawsuit and alleged that the haunted house rumour caused reduced realty value due to the stigma arising from such a rumour as well as for the failure of the seller to disclose the haunted status during the sales negotiations with the buyer.

The Law

As for proper disclosure of defects or other concerns during real estate negotiations, a seller is obligated to inform the buyer of any latent defects that may be dangerous or otherwise make the premises unfit for the intended use. This law was established within McGrath v. MacLean et al., 1979 CanLII 1691, and subsequently followed by many cases.

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.  In another legal dispute regarding a haunted house, the case of Manitoba Free Press v. Nagy, [1907] S.C.R. 340, was reviewed by the Supreme Court of Canada following allegations of that a newspaper for published an article containing suggestions that a vacant house was haunted.

Summary Comment

The chances of getting sued for spreading a rumour that a house is haunted is slim, a former owner of a house should avoid spreading rumours that may adversely affect the value of the property. A seller limits the risk of legal trouble by providing proper disclosure during the selling process and thereafter keeping quiet.