Real Estate (Non)Disclosure Gone Wrong
Stigmatized properties create risks for home buyers, even if the risks aren’t what you might expect! This story out of Ontario highlights how important disclosure is and the pitfalls if it’s not done properly.
Recently, a Toronto Raptors player purchased an $8 million dollar home in Ontario, unaware of its troubled past. The previous tenant, Adrien Pleterski, had scammed investors for over $40 million in the cryptocurrency market. The Raptors player was subject to unwanted visitors, and threats, from aggrieved investors who had been scammed. The Raptors player has since sued the seller, alleging fraudulent nondisclosure of the property’s history and moved out of the home.
Realtors in Ontario must disclose material latent defects and title issues when selling a property, together with the history of the property, including if it previously belonged to a criminal. Certain elements of the disclosure obligations are up for interpretation, but it is always prudent to over-disclose. Failure to disclose information can lead to lawsuits against realtors, and nightmares for buyers.
Although this case is in Ontario, BC realtors are subject to similar disclosure obligations.
Our firm regularly assists realtors and homebuyers with disclosure issues, including through our service Terra Firma Title Reviews.
If you are ever unsure about disclosure or have a question about a title search, we have the expertise and team to guide you through the process. If you have any questions, or foresee any issues on a deal – do not hesitate to contact our team.