Inadequate Disclosure: Sellers and Brokerage both Liable to Buyer

The sellers, Scherbaks knew that there were some problems with the foundation. The real estate sales representative, Wendy Weddell knew that too, but failed to pursue the issue on inquiry. Weddell acted for both parties.

The sellers completed a Seller Property Information Statement (SPIS) and claimed that it was Weddell who guided the completion of the Form and should be responsible for any liability.

Weddell blamed the Scherbaks for concealing the true facts.

The Court decided that they were both to blame for the buyer’s losses. And, unable to decide really who was more at fault, decided to apply the default provisions of the Negligence Act and apportion liability 50/50.

So, both the sellers and the real estate sales representative (and the brokerage) were determined to be equally responsible for the buyer’s losses.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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