What is the test for a buyer in a real estate transaction?

British Columbia, Canada


The following excerpt is from Thind v. Chen, 2021 BCCRT 730 (CanLII):

24. In a real estate transaction like this one, the buyers are expected to make reasonable inquiries and conduct a reasonable inspection of the property. Unless the sellers breach the contract, commit fraud, misrepresent the property, or fail to disclose a latent defect they knew about, the buyer assumes the risk for any property defects. This is the principle of “buyer beware” (see Nixon v. MacIver, 2016 BCCA 8).

25. A latent defect cannot be discovered through a reasonable inspection of the property and includes defects that render the property dangerous or unfit for living. A patent defect can be discovered by conducting a reasonable inspection and making reasonable inquiries about the property. A seller is not required to disclose patent defects to a buyer, but they must not actively conceal them (Cardwell v. Perthen, 2007 BCCA 313).

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