Let the seller beware?

March 21, 2012

Law Day

The Ontario Court of Appeal released a decision last spring that could have far-reaching effects for home sellers and realtors in Ontario. The decision, Krawchuk v. Scherbak,involved a first-time buyer who purchased a home in Sudbury. The sellers filled out an SPIS form, on which they stated that the foundation issues had been resolved years earlier. Unknown to the buyer, there were serious foundation problems, and the sewers regularly backed up. The agent did not know that the sellers were misstating information, but did not inquire as to whether the information was accurate.

The Court ultimately decided that both the vendors and the agent were liable for the purchaser’s costs. As I blogged about last week, the vendors would not have had an obligation to disclose defects in the house. However, a vendor cannot make a false statement about a condition of the house. When the vendors decided to fill out the SPIS form, it was their obligation to ensure that it was fully accurate.

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About Cesia

Cesia is a real estate lawyer at Wall-Armstrong and Green, a boutique law firm in Barrie focusing on real estate and estates. When she's not online, she can usually be found in her garden.

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