A seller, acting on the advice of their salesperson, decides not to disclose a past grow-op in a residential property that was fully remediated and certified as clear by a qualified environmental consultant. The grow-op occurred five years prior, and there are no visible signs or lingering issues. Which statement best reflects the legal obligation regarding this past material fact in Ontario?

Question: A seller, acting on the advice of their salesperson, decides not to disclose a past grow-op in a residential property that was fully remediated and certified as clear by a qualified environmental consultant. The grow-op occurred five years prior, and there are no visible signs or lingering issues. Which statement best reflects the legal obligation regarding this past material fact in Ontario?

Answer options:

• The seller is not obligated to disclose the past grow-op as it has been remediated and is no longer a material fact. ✅ The seller has a legal obligation to disclose any past grow-op, regardless of remediation, as it is a material fact.
• Disclosure is discretionary and depends on the buyer's direct inquiry about stigmatizing properties.
• The salesperson has a legal obligation to disclose the past grow-op, even if the seller instructs otherwise, due to their duty to buyers.

Correct answer: The seller has a legal obligation to disclose any past grow-op, regardless of remediation, as it is a material fact.

Explanation: A past grow-op, even if remediated, is considered a material fact that could affect a reasonable buyer's decision to purchase or the price they would offer. REBBA 2002 generally requires disclosure of material facts, and many buyers would consider such a history relevant despite remediation.