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Summary: Selling a house "as is" means you make no promises about its condition and the buyer takes it in its current state. It does not let you hide a problem you know about: fraud, active concealment, and a known dangerous hidden defect can still make you liable after closing, even with an "as is" clause in the agreement.
An "as is" sale sounds like a clean exit: no repairs, no warranties, no comebacks. In Ontario it mostly shifts the risk of the property's condition onto the buyer, but it is not the full liability shield many sellers assume. Knowing where the line sits is what keeps an as-is sale from turning into a lawsuit.
What does selling a house "as is" mean?
An "as is, where is" clause tells the buyer you make no representations or warranties about the property's condition. The buyer accepts the home in its current state and takes on the risk of any defect they could find by inspecting it before closing.
It usually appears as a clause or schedule in the agreement of purchase and sale. Sellers reach for it in specific situations: estate sales, a lender's power of sale, an inherited or long-tenanted home, or a fixer-upper priced to reflect its condition. In each case the seller cannot, or does not want to, vouch for the state of the property.
What an "as is" clause does not protect you from
An "as is" clause leans on the principle of caveat emptor, or buyer beware. But Ontario courts recognize limited exceptions to caveat emptor, and an "as is" clause does not override them. These are where sellers get caught:
Fraud or misrepresentation. If you tell a buyer the property is free of a defect you know exists, "as is" will not save you.
Active concealment. Hiding a defect so the buyer cannot find it, such as painting over a crack or boxing in mould, removes the protection entirely.
A known dangerous latent defect. A hidden defect you know about that makes the home unsafe or unfit to live in must be disclosed, even in an as-is sale.
A written promise you break. If the agreement contains a specific representation about the property, an "as is" line elsewhere does not cancel it.
What stays with the buyer is everything they could reasonably discover: visible (patent) defects, and problems a proper inspection would reveal. That is the trade an "as is" sale makes.
Buyer's risk under "as is" | Still the seller's risk | |
Visible, patent defects | Yes, buyer beware | No |
Defects a buyer could find on inspection | Yes | No |
Fraud or misrepresentation | No | Yes |
Actively concealed defects | No | Yes |
Known dangerous hidden defects | No | Yes |
When does selling "as is" make sense?
Selling as is suits situations where you cannot speak to the property's condition or do not want to make repairs. Estate trustees selling an inherited home they never lived in, lenders enforcing a power of sale, and owners of long-tenanted or distressed properties are the common cases.
The trade-off is price and reach. Buyers price in the risk of the unknown, so an as-is home tends to draw a smaller pool of buyers and softer offers. Sellers also usually skip the Seller Property Information Statement (SPIS), the optional form some sellers use to record what they know, because the point of an as-is sale is to make no representations at all.
How do you sell as is without taking on risk?
The clause is only as good as the honesty behind it. Selling as is protects you from complaints about condition, not from your own conduct, so the goal is a clean, well-documented sale.
Have a lawyer draft the "as is" clause. A precise clause is what actually disclaims representations; a vague line may not hold up if a dispute reaches court.
Answer direct questions honestly. You do not have to volunteer information about a visible issue, but you cannot lie if a buyer asks you about it.
Never conceal a known defect. Do not paint over, hide, or disguise a problem you know about, because that turns buyer beware against you.
Disclose known dangerous hidden defects. If you know of a latent defect that makes the home unsafe or unfit, put the disclosure in writing, even when selling as is.
Market and price it as as-is. Set expectations up front so buyers inspect and bid accordingly, which is the best way to avoid a dispute after closing.
Our step-by-step guide to selling in Ontario walks through where the as-is clause fits in the wider sale.
Frequently asked questions
Does an "as is" clause mean you don't have to disclose anything?
No. It disclaims warranties about the property's condition, but it does not override your duty not to conceal or misrepresent a known, dangerous hidden defect. Fraud and active concealment survive an "as is" sale.
Can a buyer sue after an as-is sale?
Yes, in limited cases. If you committed fraud, actively concealed a defect, or hid a known dangerous latent defect, a buyer can still claim after closing. A buyer generally cannot sue over a defect they could have found on inspection, unless you misrepresented it when asked.
Do you need a Seller Property Information Statement to sell as is?
No. The SPIS is optional in Ontario, and as-is sellers usually skip it. If you do complete one, it has to be accurate, because an inaccurate SPIS can create liability rather than avoid it.
Will selling as is get you less money?
Often. Buyers price in the risk of the unknown and may bid lower or walk away, so an as-is sale can mean both a smaller pool of buyers and softer offers.
Do you still need a lawyer for an as-is sale?
Yes. The clause has to be drafted properly to do its job, and a lawyer helps you disclose what you must without giving away more than you should.
About the author
Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.
At Ownright, we focus entirely on Ontario residential real estate law. We handle sales, including as-is and estate sales, drafting the agreement, guiding what you need to disclose, and closing the deal. You can start your sale online or get in touch with any questions.
Legal references: The duty to disclose known dangerous latent defects and the recognized exceptions to caveat emptor (buyer beware) arise under Ontario common law, not a single statute.
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
