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.
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Does the Seller of a House Need to Disclose That the House Is Haunted to the Buyer?
A Lawsuit Regarding a Haunted House Maybe Unlikely; However, a Seller Can Avoid Legal Troubles By Providing Full Disclosure to a Buyer and Refraining From Statements That Risk Stigmatizing a Property.
Note: Please contact Theresa Forrest, Paralegal by phone at: (519) 902-4223 to discuss any specific questions that you may have.
Understanding the Law Regarding Disclosure Obligations When Selling a House Perceived As Haunted
In the case of 1784773 Ontario Inc. v K-W Labour Association et al, 2013 ONSC 5401, a seller was subsequently sued by the buyer when the seller spread rumours that the house was haunted and that such was a detail the seller failed to previously disclose to the buyer. 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. 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
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.
