Water Leakage and Subsequent Damage after Closing


Buyer buys property in April 2022, firm , no inspection is done, no Form 127 is executed.

The basement had a leak which they were told by their own agent that it’s been resolved.

Buyer now has major leak issues and erosion in the basement..

Do they have any kind of claim against anyone here? If so, what kind of lawyer do they need?


The Buyer would require a civil litigation lawyer who handles real estate transactions.

Caveat emptor does not apply here since the Seller chose to break their silence and offer some information. The question is whether that information was sufficient under the circumstances.

Additionally, the statement must not amount to a misrepresentation made either fraudulently or negligently.

Further, the Court would also look at the possibility that there was a fundamental difference between what was contracted for and what was conveyed. The test is very high for that, but, if the magnitude of the issue were sufficient, then there might potentially be a claim. I might mention that there is no indication of that in this post.

In addition, the Listing agent might be liable. They have an obligation of independent verification so they would have to be careful as to exactly what they said.

Further, there may be some culpability on the part of the Buyer’s agent. Did they really stress the need for a home inspection? When the Buyer decided to forgo the home inspection was that decision truly informed or not?

Last but not least, the Buyer themselves may share some of the responsibility here. The entire matter really depends upon the facts.

This matter would be adjudicated by the Courts applying the principles from contract law, tort law and the law of restitution.

Brian Madigan LL.B., Broker


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