1. You are so excited because you have finally saved up enough money to invest in your very first home. You find the perfect home for a good price and you decide to go for it. Once you move it, however, you discover that the house has major structural issues and the foundation is shifting. The cost to repair the problem will be $80,000. You are very surprised because, before you purchased the home, your real estate agent told you that there were no structural issues with the home. Assume your agent was not aware of the structural issues but the sellers were aware. Your agent also told you that she thinks the house was once lived in by a famous actress. Being an aspiring actress yourself, you thought this was good sign and would inspire you to continue with your acting dream. After you moved in, you discovered that the house was never inhabited by a famous actress.

a) Are any of the two statements made by your real estate agent misrepresentations? If so, what kind are they and what are the remedies available?

b) In your analysis, please include the definition of a misrepresentation and discuss whether either of the statements made by your agent meet the requirements of misrepresentation.

c) Definition of misrepresentation (2 marks)

d) Analysis of first statement (statement regarding structural issues) and remedies (3 marks)

e) Analysis of second statement (statement regarding famous actress) and remedies (2 marks)