REALTORS® have an obligation to act in their clients’ best interests, whether they’re buying their first or dream home, or looking to be a tenant or landlord renting out an investment property. They have to act within the confines of the law, and that is where real estate lawyers can help. 

On a recent episode of TRREB’s Ready to Real Estate podcast, host and TRREB Chief Market Analyst Jason Mercer met with Mark Weisleder, Senior Partner and Notary Public at Real Estate Lawyers.ca LLP, to explore several real estate legal scenarios, and how he might proceed in each. We share two of them below.

Disclaimer: The information discussed in this blog post is not intended as legal advice nor reflective of TRREB’s views. Always seek the counsel of a legal professional when conducting a real estate transaction.

Scenario #1: Well, I do disclose…or do I?

Jason poses the following situation to Mark: If a woman’s husband passes away, and she scatters his ashes in the backyard, does she have to disclose as such when she sells her home?

Mark says that any visible defects in the home that would be found during an inspection do not need to be disclosed. Only defects that are hidden – things like mould behind the walls or foundation problems – need to be disclosed. “Psychological stigmas” such as death on the property, or, going back to the scenario, a man’s ashes, don’t have to be disclosed according to the law.

He adds that if events associated with these stigmas – like a death – would give pause to your client, you can put a clause into the agreement where the seller has to state that they have no knowledge of such things transpiring within the home. In this case, they would have to disclose the information because it is listed in the agreement.

Scenario #2: Hey! Who took out the light(bulbs)?

Jason poses a scenario that imagines the seller removing all of the lightbulbs in the home before closing. As it turns out, they were LED bulbs and cost the buyer thousands of dollars to replace.

This is the perfect example of issues that can arise at closing that aren’t considered to be major legal issues, says Mark. And while they’re not major, an issue like an unexpected, steep lightbulb bill can be a sticking point with your client – and you want happy clients. To protect your client from unforeseen costs or removals, make sure to get it all in writing in the agreement. If they’re impressed with the TV mount in the rec room or the chandelier in the dining room, include it in the agreement. Otherwise, the seller is entitled to take the items out. 

Mark even had a client situation where, because the house was due to be demolished, the previous owner removed all of the toilets prior to closing (which doesn’t make the lightbulbs seem so bad, by comparison!).

As Jason says, their discussion really underpins the importance of both sides of the real estate transaction, the importance of legal counsel, and the need to be proactive. For even more real estate legal scenarios, check out the full episode of Ready to Real Estate.