The Controversy of Stigmatized Properties


As most of you know, there has been a lot of talk about stigmatized properties in the media lately and coincidentally I ran into one myself!

In a nut shell, there isn’t a law in Ontario where a Seller must disclose a stigmatized property, which has more than a few people upset.  There is however a RECO requirement (Article 21 of the Code) for registrants to disclose any material fact about the property that would impact what a buyer would be willing to pay.

Here is a great interview from Mark Weisleder

My question is – At what point should this be disclosed and how?

The situation I ran into goes a little something like this.

A client of mine picked out some homes to see, I took a look at them, read the REALTOR® remarks with no mention of any major deficiencies or stigmas and showed my Buyers the properties.  Fast forward a few weeks and I’m reading the newspaper about a high profile murder trial taking place, and the street name caught my eye.  I ran a quick search and voila!   It was in fact the property I showed.

I checked with RECO and a listing sales person does not necessarily have to disclose a stigma in the REALTOR® remarks or even before a showing.

So what is the right balance to make sure a Seller is receiving showings, but Buyers are informed?  Would you disclose a stigma before a showing to avoid wasting a Buyer’s time looking at a home, or would you wait until after the showing in the event they fell in love with the home and decided to overlook the stigma?


Sarah Kiraly, YPN Committee Member and OREA YPN Guest Blogger

Leave a Reply