After closing, an Ontario buyer discovers that their own salesperson failed to disclose a material fact about the property, causing a financial loss. What is the appropriate route to seek compensation?
Correct Answer
B) A civil claim against the salesperson and the brokerage
Ontario has no real estate recovery fund, and a RECO complaint can lead to discipline such as fines, education or conditions but not an award of damages to the consumer. Compensation for a registrant's negligence comes through a civil claim, and O. Reg. 579/05 s. 11 requires every registrant to carry professional liability insurance (at least $1 million per claim) that pays damages for errors, omissions or negligent acts. The duty breached here is O. Reg. 567/05 s. 22.1, which requires disclosure of material facts to the client.
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