What is the law on latent deficiencies in real estate transactions?

British Columbia, Canada


The following excerpt is from Anderson v. Kibzey, 1996 CanLII 2484 (BC SC):

The law with respect to latent deficiencies is summarized in the headnote of Ross v. Hoobis [1992 B.C.D.], S.C.B.C., July 6, 1992, Prowse J. (as she then was): 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: (1) 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 representation recklessly, now 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. If the above factors are proven, the usual measure of damages is the difference between the price paid for the property and the actual value of the property at the time it was sold.

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