Discovering defective renovations after moving into a home can be expensive and upsetting. However, a hidden problem does not automatically make the former owner legally responsible.

In Cotton v. Monahan, purchasers pursued a claim concerning latent defects following renovations undertaken by the sellers. The dispute included whether covering defective work with drywall amounted to concealment.

The trial judge found that the sellers did not know the workmanship was defective. They had lived in the home for several years after the renovations without problems.

The Ontario Court of Appeal upheld the dismissal of the purchasers’ claim. It explained that concealment in this context involves an intention to hide a defect of which the seller is aware or wilfully blind. Simply covering work during the ordinary renovation process did not establish that intention on the facts.

The court applied principles requiring proof of the seller’s knowledge, concealment, or representations made with reckless disregard for the truth. The findings that the sellers were unaware of the defects defeated the arguments advanced against them.

What this could look like in practice

Imagine discovering water damage behind a finished basement wall shortly after closing. Photographs establish the damage, but further investigation would be needed to understand its history.

Relevant questions might include whether previous leaks occurred, whether repairs were attempted, and what the seller said before the purchase. An expert’s findings, earlier repair invoices, inspection materials, and written communications could help organize those questions.

The fact that a wall concealed damage from view would be one part of the investigation. It would not, by itself, explain who knew about the problem or why the wall was installed.

The takeaway

Distinguish evidence of a defect from evidence supporting the seller’s legal responsibility. Preserve photographs, reports, purchase documents, and communications so the condition of the property and the seller’s representations can be assessed together.

Contact JY Law to discuss your circumstances and how we may assist you.

The information on this page is provided for general educational purposes only and does not constitute legal advice. These summaries highlight selected principles and do not address every issue or subsequent legal development. Examples are hypothetical and do not predict outcomes. Rights and obligations depend on the agreement, applicable legislation, relevant dates, and particular circumstances. Reading this page or contacting our firm does not, by itself, create a lawyer-client relationship. If you have further questions or require advice about your situation, please contact us.