What could be the consequences of failing to disclose known defects in a property?

Failing to disclose known defects in a property can lead to the seller being held liable for damages. This liability arises from the principle of full disclosure and honesty in real estate transactions. Sellers have a legal and ethical obligation to inform potential buyers of any defects or issues that could affect the property's value or safety. If a seller knowingly withholds this information, they may face legal consequences, including lawsuits for breach of contract or misrepresentation.

In many jurisdictions, including Nova Scotia, buyers can seek damages for any losses incurred as a result of undisclosed defects. This could include the cost of repairs or any decrease in property value attributable to the undisclosed issues. Additionally, the seller may be compelled to return the sale proceeds or even face penalties, which underscores the importance of transparency in real estate dealings.