Selling Haunted Houses

Question:Do I have to tell the buyer that my house is haunted when selling in Ontario?

Answer:In Ontario, a seller is generally required to disclose material latent defects that could make the property unfit or pose safety issues, so a haunted rumour alone may not automatically trigger a disclosure duty, but it can create legal risk if you make or repeat statements that effectively suggest a factual defect without context or if you fail to address other known issues; courts have handled haunted-house claims differently based on the evidence and wording used during negotiations, so the safest approach is to provide full, accurate disclosure of any relevant known conditions and avoid stigmatizing statements about the property’s status, and if you want a clear Ontario-appropriate disclosure plan when selling, paralegal help from Byfield Legal Services can guide your next steps at (289) 927-7365. 

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Does the Seller of a House Need to Disclose That the House Is Haunted to the Buyer?

There Are Few Cases 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.

Note: Please contact Byfield Legal Services by phone at: (289) 927-7365 to discuss any specific questions that you may have.

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.

In regards to failing to disclose that a house is haunted, in the 1784773 Ontario Inc. case, it was determined that whereas the haunted house statements were made jokingly and whereas the buyer was unable to provide proof that the house was haunted, the case was dismissed.  Accordingly, whether would find a seller liable if evidence of paranormal activity was available remains unknown.  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.

Summary Comment

Although the likelihood of being sued for spreading rumours that a house is haunted is unlikely, sellers, among others, are best to avoid the risk of a legal hassle by providing full disclosure when selling a property. Subsequently, avoiding the spread of rumours about the property is wise.