Suing a Home Seller for Misrepresentation in British Columbia

You read the listing and the Property Disclosure Statement, you relied on them, and after the sale you found they were wrong. The roof leaked before you bought, or the seller said there was no water damage. You may be asking whether you can hold the seller responsible.

This article explains how disclosure works in British Columbia, what misrepresentation generally means, how buyers try to prove it, and the deadlines and forums to be aware of. Outcomes depend heavily on the facts, so treat this as a starting point.

This article covers the law of British Columbia.

How disclosure works in BC

There is no prescribed disclosure form in BC. A Property Disclosure Statement completed by the seller is a common but voluntary way to disclose. If you received a Property No Disclosure Statement, that is a signal to do further due diligence.

Caveat emptor, or buyer beware, still applies to visible defects, and buyers have a general duty to inspect. Sellers, however, must disclose known latent defects, meaning defects a reasonable inspection would not reveal.

What misrepresentation generally means

In everyday terms, a misrepresentation is a statement about the home that turned out to be untrue and that mattered to your decision to buy. Whether a particular statement gives you a legal claim depends on the facts and on how courts have treated similar situations, so it is worth confirming with a lawyer. It might be written, such as an answer in a Property Disclosure Statement or a listing description, or it might be spoken. Silence about a known hidden problem can also be a concern, given the duty to disclose known latent defects.

Whether a statement counts, whether it was false, and whether it was the seller's knowledge or only an honest mistake are questions of fact. A lawyer can tell you how courts have treated the particular wording in your documents.

Real estate licensees have their own obligation. They must disclose material latent defects in writing before an agreement is reached, and a clause in the contract of purchase and sale cannot remove that obligation.

How buyers try to prove it

Most disputes turn on evidence. Gather it early and keep originals.

• The listing, advertising and any Property Disclosure Statement or Property No Disclosure Statement.
• The contract of purchase and sale and any addenda.
• Emails and texts with the seller and the agents, especially about the problem area.
• Your pre-purchase inspection report, showing what was and was not visible.
• Photos, repair records and a written opinion from a contractor or engineer about the cause and how long the problem existed.
• Evidence that the seller knew, such as earlier repairs, insurance claims, neighbours' accounts or invoices.

Evidence that the defect could not be seen on a reasonable inspection supports the argument that it was a latent defect. Evidence that it was visible is a concern, because buyer beware still applies to visible defects. How any warning you received affects a claim depends on the facts, so it is worth confirming with a lawyer.

Possible remedies and where to bring a claim

What a court might order in a case like this depends on the facts, and this article does not try to list every remedy. Which outcome is realistic depends on how serious the problem is, what you did after finding it and whether the home was resold or changed. A lawyer can confirm what is available to you.

Forum depends on the size of the claim. The Civil Resolution Tribunal can take small claims up to $5,000, and larger claims go to Provincial Court (Small Claims) or Supreme Court. The Civil Resolution Tribunal cannot hear some land-related claims, such as ending or dissolving an interest in land.

Deadlines and next steps

A court proceeding must not be started more than 2 years after the day the claim is discovered. Discovery happens on the first day you knew or reasonably ought to have known that loss occurred, that an act or omission caused it, that it was the defendant's, and that a proceeding is an appropriate means to seek a remedy. There is also a 15-year outer limit from the act or omission, which can be extended if the defendant wilfully concealed the problem.

• Note the date you first noticed the problem.
• Stop or limit further damage, and keep receipts.
• Do not discard damaged materials before they are documented.
• Send nothing to the seller that you would not want read in court.
• Speak with a BC lawyer early, before the 2-year period runs.

Frequently asked questions