Suing the Seller for Misrepresentation After Moving In (BC)

After you move in, you find that something the seller said, or something in the Property Disclosure Statement, was not true. A leaking roof described as dry, or past flooding left out, can leave you angry and out of pocket.

This article walks through the general approach in British Columbia: what the seller was expected to disclose, what you would need to show, what remedies may be available, and how the contract and time limits shape the claim.

This article covers the law of British Columbia.

What a seller must disclose

There is no prescribed disclosure form in British Columbia. A Property Disclosure Statement completed by the seller is a common but voluntary way to disclose. The principle of caveat emptor, let the buyer beware, still applies to visible (patent) defects, and buyers have a general duty to inspect.

The key distinction is between patent and latent defects. Sellers must disclose known latent defects, which are defects a reasonable inspection would not reveal. Real estate licensees must disclose material latent defects in writing, before an agreement is reached, and cannot contract out of that obligation by a clause in the contract of purchase and sale.

What you would generally need to show

Every case depends on its evidence, but a misrepresentation claim usually involves questions like these:

• What exactly was said or written, and by whom: the seller, the listing agent or on the disclosure statement.
• Whether it was false, or whether a known defect was concealed or left out.
• Whether the seller knew about the problem, which is where repair records, insurance claims and neighbours can matter.
• Whether the defect was hidden from a reasonable inspection, or was visible and something you should have caught.
• What loss you have suffered and how you can document it, such as repair quotes and invoices.

If the statement said "no disclosure", that is a signal for the buyer to do further due diligence. What that means for your own situation depends on the facts, so it is worth confirming with a lawyer.

Remedies and the contract

What remedy may be available depends on how serious the problem is, the wording of your contract and the facts of your situation, so it is worth confirming with a lawyer. No result can be promised. Whatever you pursue, keep repair quotes, invoices and photographs, because they help show the size of your loss.

Your contract of purchase and sale matters. Look for clauses about inspection, conditions you removed, "as is" wording, and any reference to the disclosure statement. Such terms can affect your claim, though a licensee cannot contract out of the duty to disclose material latent defects in writing. A lawyer should read the actual wording.

Deadlines still apply

A court proceeding must not be started more than 2 years after the day the claim is discovered. Discovery is the first day you knew or reasonably ought to have known of the loss, its cause, the defendant's role, and that a proceeding is appropriate. A separate 15-year period runs from the act or omission, not from when you found the defect.

If the defendant wilfully conceals the damage or its cause, the act or omission is treated as occurring on the discovery day, which can extend the 15-year period. If the defendant acknowledges liability before a limitation period expires, the claim is treated as not discovered before the day of the acknowledgment, and the acknowledgment generally must be in writing, signed, and made to the claimant or their agent. Smaller money claims up to $5,000 can go to the Civil Resolution Tribunal; larger claims go to Provincial Court (Small Claims) or Supreme Court.

What to do next

• Stop making repairs that destroy evidence until the problem is photographed and inspected.
• Gather the listing, the contract, any Property Disclosure Statement, inspection reports and all messages with the seller and agents.
• Get a written opinion on the cause and cost of repair from a qualified professional.
• Work out early when you first knew, or reasonably ought to have known, about the loss, its cause and who was responsible, because the 2-year period runs from that discovery date and not necessarily from the day you noticed the problem.
• Consult a lawyer before contacting the seller with accusations, so your letter helps and does not hurt.

Frequently asked questions