What is the test for establishing fraudulent misrepresentation in a real estate contract?

British Columbia, Canada


The following excerpt is from Sahamis v. Lenz, 2014 BCSC 2305 (CanLII):

In Ross v. Hobbis (1992) 25 R.P.R. (2d) 27 (B.C.S.C.) the claim was founded on fraudulent misrepresentation about which Madam Justice Prowse stated at p. 34: In order to establish that a contract of purchase and sale of property was entered into on the basis of a fraudulent misrepresentation, a plaintiff must establish: (a) that a false representation was made to him or her by the defendant; (b) that the representation was false in fact; (c) that the defendant knew that the representation was false when it was made, or made the false representation recklessly, not knowing if it was true or false; and (d) that the plaintiff was induced to enter into the contract by the false representation, and thereby suffered a detriment.

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