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
D) If the buyer proves the seller knew of the tank, 'Unknown' is fraudulent misrepresentation, and remediation costs and damages are recoverable
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
Option D is correct because if the buyer can prove the seller actually knew about the tank and contamination, then marking 'Unknown' on the PDS constitutes fraudulent misrepresentation. The seller deliberately concealed known information by claiming ignorance. The buyer may recover remediation costs, diminution in property value, and potentially additional damages. The burden of proof is on the buyer to establish the seller's actual knowledge.
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