An Alberta seller provides a property condition disclosure statement (PCDS) that states the basement has never had water infiltration. After completion, the buyer discovers evidence of long-standing water damage that was concealed. What is the buyer's strongest legal argument?
Correct Answer
A) The buyer can claim fraudulent misrepresentation based on the seller's knowingly false PCDS statements
While the PCDS is not a warranty, it can form the basis of a claim for fraudulent misrepresentation if the seller made knowingly false statements. Concealing evidence of water damage and stating there was never water infiltration constitutes fraud. The buyer may pursue damages through the courts based on the seller's deliberate misrepresentation.
Why This Is the Correct Answer
Under Alberta law, a seller who knowingly makes false statements in the PCDS about property condition commits fraudulent misrepresentation. Although the PCDS itself is not a warranty, deliberately concealing known water damage and stating the basement has never had water infiltration constitutes fraud, giving the buyer grounds to pursue damages in court.
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