What constitutes a misrepresentation in a real estate transaction?

24. A “misrepresentation” is a false statement of fact made during negotiations or in an advertisement that has the effect of inducing a reasonable person to enter into the contract. A “negligent” misrepresentation occurs where a seller fails to exercise reasonable care to ensure representations are accurate and not misleading. If a buyer relies on that misrepresentation in making the purchase, the seller may be responsible for any losses arising from that misrepresentation: Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 SCR 87 at paragraph 110.