A buyer in BC waives subjects and the contract becomes firm. The buyer later discovers a significant latent defect the seller knew about but did not disclose. What remedies may be available?
Correct Answer
B) The buyer may seek rescission or damages for fraudulent or negligent misrepresentation, as the duty to disclose known latent defects survives subject removal
In BC, a seller's duty to disclose known latent defects that make the property dangerous or unfit for habitation is a legal obligation that survives subject removal and even completion. If the seller knowingly concealed a material latent defect, the buyer may seek rescission (undoing the sale) or damages based on fraudulent or negligent misrepresentation.
Why This Is the Correct Answer
Option B is correct because the seller's legal duty to disclose known latent defects that render the property dangerous or unfit for habitation is an obligation that survives subject removal and even closing. If the seller knowingly concealed a material latent defect, the buyer may pursue rescission (undoing the sale) or damages based on fraudulent or negligent misrepresentation, regardless of when subjects were removed.
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