Terminology Tuesday: Latent Defect

When buying or selling a home, you may hear the term "latent defect." A latent defect is a problem with a property that is not readily visible or discoverable during a normal inspection. In other words, it's a hidden issue that a buyer would not reasonably notice when viewing the home or even during a standard home inspection.

Examples of latent defects can include hidden structural damage, concealed water infiltration, faulty wiring hidden behind finished walls, or a foundation issue that has been covered up. Because these defects are not obvious, they can sometimes come as an unpleasant and expensive surprise after a purchase has closed.

In Ontario, sellers are generally required to disclose known latent defects that make a property dangerous or unfit for habitation. However, sellers are not expected to guarantee that a home is free from every hidden problem. This is one reason why home inspections, careful due diligence, and working with experienced professionals are so important.

For buyers, understanding the difference between visible (patent) defects and latent defects can help set realistic expectations. For sellers, being honest and transparent about known issues can help avoid disputes later on.

If you have questions about property disclosures, home inspections, or buying and selling real estate in Hamilton, feel free to reach out. I'm always happy to help.

Market Media Monday - June 1, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ 20% housing drop still leaves Canadians locked out ]
"Canada’s housing market has plunged into one of its sharpest-ever corrections. Canadians say it hasn’t gone far enough. After a record surge in home prices following the COVID-19 pandemic, slower population growth and increased supply in some communities have triggered a steep reversal. Benchmark prices have fallen by about 20 per cent nationally since 2022, and more than 30 per cent in some cities."

[ Canada’s largest markets could be at inflection point for recovery ]
"Resale real estate saw flat month-over-month activity in April, though some of Canada’s largest markets may be reversing their downward trajectories. An RBC Economics report pointed to Toronto experiencing a six per cent increase in resales in April from March. Year over year, sales grew seven per cent. That led RBC to suggest that Toronto and other large Ontario markets like Hamilton “could be finally turning around.”"

[ Ontario’s mortgage delinquency rate has spiked by 52 per cent ]
"Delinquencies on mortgages jumped 52 per cent in Ontario in the first quarter of 2026 compared with the year before, according to a new report from Equifax Canada. Missed payments in the province are now at 0.36 per cent, up from 0.24 per cent. Over the same period, Brampton’s rate rose 64 per cent, to 0.64 per cent, while Toronto’s increased 58 per cent to 0.38 per cent."

Don't Get Scammed

“Don’t get scammed.”

I know you might be tempted to file that advice under “OBVIOUS” or “No kidding,” but I’ve been in the real estate business long enough to tell you: the scammers are out there. And they wouldn’t be if they didn’t think they could get away with it.

Not all “scams” are illegal, either. There are plenty of things I’ve seen over the years that I would consider morally questionable, even if they’d never result in criminal charges.

Now, just to be clear, I’m not talking about real estate agents here.

I know the public perception of our profession isn’t always glowing, and yes, there are bad apples — just like in any business. But licensed real estate professionals are often your safest option.

For one thing, licensed professionals are held to higher legal and ethical standards. We’re expected to know more than the average person, and we’re expected to provide proper disclosure and competent advice to our clients.

Professionals also invest significant time and money into their businesses and education on an ongoing basis. Generally, the long-term rewards of maintaining a good reputation far outweigh the temptation to cut corners for short-term profit and risk losing a license.

Can I promise you that having a REALTOR® involved means you absolutely won’t get scammed? No. Even the best of us don’t have crystal balls or magical lie detectors, and sometimes sellers, buyers, or third parties can fool professionals too. But the odds are generally much better.

On the other hand, once you start dealing with private sellers and unlicensed or uncertified service providers — whether it’s a renovating-and-flipping company, a rent-to-own seller, an untrained home inspector, or direct lenders offering private mortgages — there are far fewer safeguards.

Some of these people may be excellent, both ethically and technically. But where there's no standardized qualification or oversight, it can be difficult to know who you’re dealing with.

If you’re considering any real estate opportunity — whether buying, selling, or investing (or “investing” in quotation marks) — and licensed professionals aren’t involved, my advice is simple: do your homework.

The gold standard is always a referral from someone you trust who has actually done business with them.

Failing that, at minimum, do your research online. Search both the individual’s name and the company name. Look for reviews, complaints, warning signs, and independent information. There are still no guarantees, but doing something is better than doing nothing.

And finally: if your gut tells you something isn’t right, consider listening to it. Sometimes your instincts notice the red flags before your brain catches up.

What does "as is" mean in a listing?

If you're looking at properties long enough, there's a chance you're eventually going to come across one that says "property sold as is" or something along those lines.

Basically, this is a way of emphasizing "buyer beware" and the seller saying they are not taking responsibility for the condition of the property or making any promises about it.  

Often it can be an indication that the property will be in rough condition, with deferred maintenance or other issues.  As such, some lenders treat this as a potential 'red flag' when looking at the property for a mortgage.

However, it is also quite common on estates and power-of-sale/foreclosures because the seller is not the person who was actively living in the property (although with an estate the executors might be a bit more familiar with the property than a bank selling a property they've taken from the owner).  When looking with buyer clients, I'm less concerned to see this statement in one of these situations.

And it's important to understand as a seller, that it doesn't really excuse you from disclosing known latent defects.  A latent defect is any problem that may not be visible on inspection.  This can include things like knob & tube hidden in the walls (if you know), occasional problems with flooding in the basement (sometimes hard to see unless it's presently wet), foundation problems hidden behind a finished basement, and so on.  It does emphasize that the buyer should be doing their own due diligence, but does not entirely remove the sellers' legal obligations.

Clauses can be included in an Agreement of Purchase and Sale that help to emphasize that the buyer is making an informed decision and accepts the property "as is". Even this probably would not really excuse the seller from disclosing known latent defects if it came to a court battle, but it can be quite difficult for a buyer to prove a seller knew something. As such, buyers should always use reasonable caution when buying a property that includes this statement.

Terminology Tuesday: Mutual Drive

If you are looking at homes in an older neighbourhood, you may come across the term mutual drive. A mutual drive (sometimes called a shared driveway) is a driveway that is shared by two neighbouring properties and provides access to one or both homes, often with garages in the rear yards.

In many cases, mutual drives are narrow lanes running between houses where both homeowners have legal rights to use part or all of the driveway. These arrangements are especially common in older urban areas where homes were built closer together and parking space was limited. Sometimes the rights to use the driveway are formally registered on title through an easement or right-of-way agreement, while in other cases the arrangement may be based on longstanding use. The former has defined enforceable rights, while the latter may be more nebulous.

If you're buying a home with a mutual drive, it’s important to understand exactly what rights and responsibilities come with it. Questions to consider include: Who is responsible for maintenance? Are there restrictions on parking? Does one owner have a legal right-of-way over the other’s property? A real estate lawyer can review the title, and your REALTOR® can help you understand how the arrangement may affect everyday living and resale value.

Market Media Monday - May 25, 2026

A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.

[ Investment in housing construction is declining across Canada, data shows ]
"Investment in Canada’s housing construction sector is declining, data from Statistics Canada shows. Canada’s real estate sector saw $22.6 billion invested in building construction in March, a drop of $304.6 million, or 1.3 per cent, compared with February. However, the drop was sharper when compared with March 2025, with investment in residential real estate construction dropping 2.2 per cent, while the non-residential sector saw a modest 0.6 per cent increase, Statistics Canada said."

[ Dream wedding vs. dream home: Poll reveals Canadians increasingly reducing wedding plans to pursue home ownership ]
"A new survey from Canadian real-estate page Royal LePage found that many Canadians are skipping expensive wedding celebrations to increase their chances of purchasing a home. According to the study, 46 per cent of respondents say they would significantly scale back or abandon their wedding celebrations altogether in order to put that investment into a down payment for a home. Meanwhile, 40 per cent said they might do so."

[ Fallen into negative home equity? Here are your options ]
"The Canadian property market has experienced a major contraction since the end of the pandemic, reversing rapid house price gains between 2020 and 2022. According to the MLS House Price Index, the cost of property fell by 20% from its peak in early 2022, as well as by 4.7% year-on-year. "

Terminology Tuesday: Encroachment

An encroachment happens when something on one property crosses over onto a neighboring property without permission. That “something” is physical and visible, like a fence, a shed, a driveway, or even part of a house. Sometimes it’s obvious (like a fence clearly in the wrong spot), but other times it’s subtle—like a retaining wall that’s just a few inches over the lot line.

Encroachments are usually discovered during a survey or when reviewing title documents. And while they might sound like a big deal, not all encroachments are deal-breakers. In fact, many exist for years without causing any issues at all.

That said, they can become a problem—especially when a property changes hands. A buyer might not be thrilled to learn that part of what they thought they were buying actually belongs (legally) to the neighbour. Or vice versa.

So what happens next?

Title insurance often covers minor encroachments, which is one reason it’s so common in Canadian real estate transactions. The parties may agree to a written permission, allowing the encroachment to remain.
In some cases, the issue may be have to be resolved by moving or removing the structure—though that’s obviously the least popular option for at least one party.

The key takeaway? Encroachments are not something you see every day, but they are more common than people realize, and they’re usually manageable with the right guidance. Like many things in real estate, it’s not about avoiding every possible issue—it’s about understanding what you’re dealing with and making informed decisions.