A buyer purchases a home in North Vancouver and discovers after closing that a decommissioned oil tank was not properly removed and has contaminated the soil. The seller checked 'Unknown' on the PDS regarding oil tanks. What is the buyer's legal position?
Correct Answer
B) If the buyer can prove the seller actually knew about the tank and contamination, the 'Unknown' answer constitutes fraudulent misrepresentation and the buyer may recover remediation costs and damages
If the seller knew about the oil tank and contamination but marked 'Unknown' on the PDS, this constitutes fraudulent misrepresentation. The buyer would need to prove the seller had actual knowledge. If successful, the buyer may recover the cost of remediation, diminution in property value, and potentially additional damages. The buyer should also consider whether the seller's agent knew and failed to disclose.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Residential Trading Question
Background Knowledge for Residential Trading
Real World Application in Residential Trading
Common Mistakes to Avoid on Residential Trading Questions
Key Terms
More Residential Trading Questions
During the offer process, what happens when a seller receives multiple offers on the same day?
What is the primary purpose of a buyer representation agreement in residential real estate transactions?
Which residential property type typically offers individual ownership of the unit plus a share in common elements?
What is the standard timeline for removing conditions in a residential purchase offer in most Canadian provinces?
Sarah is a real estate agent representing both the buyer and seller in the same transaction. What type of representation is this called and what must she do?
- → What typically occurs on closing day in a residential real estate transaction?
- → A buyer's offer includes a condition for financing approval. If the buyer's mortgage application is denied, what options does the buyer have?
- → What is the primary benefit of title insurance for residential property buyers?
- → In a complex multiple representation scenario, Agent John represents the seller while his colleague Agent Mary from the same brokerage represents the buyer. What disclosure obligations exist?
- → A buyer discovers a significant structural issue during the final walk-through on closing day that was not present during the home inspection two weeks prior. What are the buyer's options under typical Canadian real estate law?
- → What is the primary purpose of a buyer representation agreement in residential real estate transactions?
- → Which residential property type is characterized by individual ownership of the unit and shared ownership of common areas?
- → In a typical residential real estate offer process, what happens immediately after the seller accepts the buyer's offer?
- → What is the standard time period for condition removal in most Canadian residential purchase agreements?
- → Sarah is a real estate agent representing both the buyer and seller in the same transaction. What type of representation is this called, and what is her primary obligation?
People Also Study
Real Property Law
60 questions
Contracts & Agreements
60 questions
Agency & Professional Ethics
60 questions
Mortgage & Real Estate Finance
60 questions
Related Study Resources
Helpful Resources
Previous Question
A buyer is purchasing an Alberta property where the RPR shows a garage encroaching 6 inches over the property line onto the neighbour's land. What are the options to resolve this issue before completion?
Next Question
A licensee in BC is involved in a transaction where the buyer is purchasing a 1990s-era strata unit. The building has not had a depreciation report completed and the strata voted to exempt itself. Which of the following best describes the licensee's obligations?