Since Sharon Krawchuk owned a house that she wanted to sell, she hired Wendell Aitch to act
Question:
Since Sharon Krawchuk owned a house that she wanted to sell, she hired Wendell Aitch to act as her real estate agent. Zoriana Scherbak appeared as a potential buyer. While looking around the house, Zoriana noticed a crack in the foundations and asked if the building had experienced any recent problems. Since she was concerned about flooding in the basement, she also asked if the local sewer system worked well. After that meeting, the vendor completed a Seller Property Information Sheet (SPIS) that described the property. The SPIS observed that the foundations had settled in one corner, but also said that the building had not suffered any problems in the past 17 years. The SPIS also stated that basement flooding was not a problem. The real estate agent was with the vendor when the SPIS was completed. Since he did not have any first-hand knowledge of the house, he simply assumed that the vendor's statements on the SPIS were accurate. Unfortunately, they were not. As the purchaser discovered shortly after buying the house and taking possession, and as the vendor knew all along, the building was continually sinking and causing significant problems. Furthermore, after her basement flooded, the purchaser learned that the local sewer system failed several times a year. The purchaser is now faced with a set of expensive repairs. She would like to sue. Is a vendor generally required to disclose defects? If not, did an obligation to disclose defects arise as an exception in this case? If the vendor cannot afford to pay full damages, is any other option available to the purchaser? Explain your answer.
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0133847154
5th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer