Can I sue my real estate agent for giving me bad advice that cost me money in Ontario?
Yes, if the agent's advice fell below what a reasonably competent agent would have given in the same situation, and that failure actually cost you money. Real estate agents owe their clients a duty of care (and often a fiduciary duty, since they act on your behalf) covering things like pricing guidance, disclosure of known issues, and handling of offers and conditions. A generic bad outcome - a house that lost value, or a deal that fell through - isn't enough on its own; you need to show the advice itself was careless by professional standards, not just wrong in hindsight.
You will generally need expert evidence from another agent about what a competent professional would have done, plus proof that you relied on the advice and suffered a quantifiable loss as a result. This is separate from filing a complaint with the Real Estate Council of Ontario, which can discipline the agent's licence but does not compensate you directly. Many clients pursue both: a regulatory complaint to flag the conduct, and a civil claim in Small Claims Court or Superior Court, depending on the amount at stake, to recover the loss itself.
Key takeaways
- A real estate agent can be sued for negligence if their advice fell below a competent professional's standard and caused a quantifiable loss.
- Hindsight alone isn't enough - you need evidence the advice was careless when given, usually through another agent's expert opinion.
- A RECO complaint can discipline the agent but does not get you compensation - that requires a separate civil claim.
- The right court (Small Claims or Superior Court) depends on how much money is at stake.