When a seller lists a home “as-is,” it usually just means they won’t fix anything before closing. Under Ontario law, even when a home is sold “as-is” the seller must disclose all known hidden defects.
However, when it comes to buying an estate sale being sold “as-is” it becomes much more risky…
Why Estate Sales are “True” Buyer Beware Sales
Normally, a buyer’s safety net is that the seller lived in the home and knows its history; it’s also the legal expectation that the seller disclose hidden defects they may know about. That would include things like lead paint, asbestos, knob and tube wiring, or major foundation issues.
However, Ontario court ties seller liability directly to actual knowledge. A person cannot be held accountable for a hidden defect if they truly did not know it existed. That’s where the issue with estate sales come in: An executor or a trustee most likely did not live in the home, and they don’t have the same intimate knowledge that a normal homeowner would .
Key Takeaway: In a standard sale, “as-is” means the seller won’t do repairs. In an estate sale, “as-is” means nobody alive may actually know what’s wrong with the house.
In 2023, we sold a very cute bungalow to a young, first-time buyer couple. The home was approximately 42 years old, and the seller had lived in the home for 40 years. Our clients hired an excellent home inspector who found no major issues. However, during a renovation, the buyers uncovered a faux wall that was hiding significant foundation damage. The cost to repair the basement wall exceeded $50,000, so they sued the seller and recovered their losses.
The seller claimed they didn’t know about the faux wall, but the judge found that it was unreasonable to think someone who had lived in a home for 40 years would not have noticed the faux wall (or had been the one to install it).
If this home was sold as an estate sale, the trustee might have actually not known about a faux wall, and in this case, the buyers might not have had a case to pursue the seller for damages.
What You Should Do as a Buyer
You don’t need to avoid probate sales, but you do need to treat your inspection period as your only line of defence.
If you’re negotiating an offer on an estate sale, consider making enhanced inspections. Nothing is stopping you from negotiating the right to have the sewerline scoped, the electric reviewed by an electrician, and if there’s any signs of basement concerns, negotiate the right for an engineering review.
Frequently Asked Questions
Can I sue an estate seller if I find a major hidden defect after closing?
Only if you can prove the executor had actual prior knowledge of the issue and hid it. Since most trustees have no firsthand history with the property, proving this after the fact is extremely difficult.
Are family-managed estate sales safer than trustee-managed ones?
Generally, yes. A family member acting as executor may have visited often or spoken with the deceased about maintenance. A court-appointed trustee usually has zero history with the home.
Is an estate sale home more likely to have hidden defects?
Not inherently, but it carries a higher risk that existing problems went unnoticed or unaddressed for years without anyone around to log or report them.
Thinking About an Estate or Probate Listing?
The biggest mistake buyers make with estate sales is assuming “what you see is what you get.” Don’t navigate hidden risks alone. Before you put an offer on an as-is estate property, let’s look at the listing together. We’ll make sure you have the right inspection conditions in place so you’re protected before you sign.