Imposition of Liability upon Sales Representative and Sellers in Real Estate Transaction

Here’s a quick review of the facts in the Krawchuk and Scherbak case:

Facts

The sellers knew that:

•·        the foundation of the house was seriously compromised and

•·        there were ongoing plumbing problems. 

Sellers’ Liability

The sellers made incomplete disclosure about these problems to the buyer. 

Sales Representative’s Liability

The sales representative took no steps to:

•·        verify the accuracy of the information supplied by the sellers or

•·        protect the buyer from the adverse consequences of this inaccurate information.  

Detrimental Reliance by Buyer

Misinformed by the Scherbaks and badly served by the Weddell, the buyer purchased a house with serious latent defects. 

Damages Sustained by Buyer

The buyer was forced to move out while she repaired her home at considerable expense.

Comment

You will see that the imposition of liability upon the sales representative in this particular case was based not only upon what she did, but what she failed to do, namely “verify” and “protect”.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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