A buyer's home inspection reveals significant structural issues that were not disclosed by the seller. The inspection condition has already been waived. What legal recourse does the buyer have?
Correct Answer
A) The buyer may pursue legal action for misrepresentation or non-disclosure
Even after waiving an inspection condition, buyers may have legal recourse for material non-disclosure or misrepresentation by the seller. While they cannot use the waived condition to terminate, they may pursue remedies for fraudulent or negligent misrepresentation under common law.
Why This Is the Correct Answer
Option A is correct because waiving an inspection condition doesn't eliminate legal remedies for seller misrepresentation or non-disclosure. Under Canadian common law and provincial real estate legislation, buyers retain the right to pursue legal action for fraudulent or negligent misrepresentation, even after waiving contractual conditions. Structural issues constitute material facts that sellers must disclose, and failure to do so may constitute actionable misrepresentation, providing grounds for damages or potentially rescission of the contract.
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