Last Updated: August 25 2026
Is a Seller Legally Required to Disclose That a House Is Haunted in Ontario?
Theresa Forrest, Paralegal can help you understand Ontario real estate disclosure duties if you are buying or selling a property that may have a haunted or paranormal reputation. In Ontario, sellers must disclose latent defects that create danger or make a home uninhabitable, and the core duty was described in McGrath v. MacLean, 1979 CanLII 1691. Courts have also looked at whether haunted-status claims were mere rumours or jokes, and whether the buyer can prove the allegation’s impact, including in 1784773 Ontario Inc. v K-W Labour Association et al, 2013 ONSC 5401. Because you can reduce risk by giving full, accurate disclosure and avoiding stigmatizing comments, a paralegal at Theresa Forrest, Paralegal can review your situation and transaction documents, and you can call (519) 902-4223 to get guidance.
Add this website to Google Preferred Sources
Is a Seller Legally Required to Tell a Buyer That a House Is Haunted?
While It Is Unlikely That a Lawsuit About Whether a House Is Haunted Would Succeed In Court, It Is Always Best That a Seller Provides Full Disclosure to a Buyer and Then Refrain From Stating Anything That May Stigmatize a Property.
Note: For immediate help, please contact Theresa Forrest, Paralegal by phone at: (519) 902-4223 to retain services or 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
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.
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
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.
