An Alberta buyer discovers after possession that the home has a serious plumbing defect that the seller's Property Condition Disclosure Statement stated was in good condition. What legal options does the buyer have?
Correct Answer
A) The buyer may sue for negligent or fraudulent misrepresentation if the seller knew of the defect and made a false statement
In Alberta, if a seller knowingly made false statements in the Property Condition Disclosure Statement about a material defect, the buyer may pursue legal action for negligent or fraudulent misrepresentation. The buyer must prove the seller knew about the defect and made an inaccurate representation that the buyer relied upon in making the purchase decision.
Why This Is the Correct Answer
Alberta common law and court precedent support claims for negligent or fraudulent misrepresentation in property transactions. Under principles established in cases like Aldred v. Spence, sellers who make false statements about material defects in disclosure documents can be held liable. The buyer must prove knowledge, false representation, and reliance to succeed.
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