Caveat Emptor Exceptions

There are a couple of common law rues which get around caveat emptor:

  1. Fraud,
  2. Latent Defects (material), and
  3. Fundamental Difference.

Generally, the first two are relatively clear and evident. It’s the third one which is often missed.

If there’s a fundamental difference between that which you bargained for and what you are to actually receive, then that allows some remedies. You are not obliged to complete the deal. In fact, the remedy of rescission might be available after the transaction has closed.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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