Understanding Buyer Recourse When Sellers Misstate Key Facts: Lessons for Toronto, Scarborough, North York and Etobicoke Homebuyers

Buying a home is one of the most important investments you can make. You imagine settling into a neighbourhood you love, enjoying your space for many years, and relying on the information provided during the purchase. If you work with a real estate lawyer and purchase property in Toronto,  Scarborough, or  North York you expect the agreement of purchase and sale, the listing statements, and seller disclosures to match reality. Unfortunately, this is not always the case and some situations show that buyers may have legal recourse if a seller misrepresents a material fact that affects the purchase.

What the Court Found

In one situation, the vendors completed a standard seller disclosure form stating there were no known defects in the home. After closing, the buyer discovered major structural problems. The court found that even when a purchase agreement contains no express warranty, a seller or agent can still be liable. If a representation is false, the buyer relies on it, and it induces the purchase, the buyer may have grounds to seek remedies. This shows that vendor disclosures and agent statements should be reviewed carefully.

Why This Matters to Buyers

A  real estate lawyer will review not only the contract but also seller disclosures, listing materials, inspection reports, and zoning or permit records. If the seller or agent stated the home was in excellent condition or free of defects, but hidden issues appear later, those statements may be material. While caveat emptor, or “buyer beware,” applies in Ontario, it is not absolute. Material misrepresentation can give buyers legal rights to seek damages or rescind the purchase.

How a Real Estate Lawyer in Scarborough, North York, or Etobicoke Can Help

A local real estate lawyer can help assess the statements relied upon when buying a home. A real estate lawyer will conduct or assist with a title search, check permits and zoning, review disclosures, and evaluate whether seller statements could lead to liability. After closing, if hidden defects or misrepresentations are discovered, a real estate  lawyer can determine whether you may pursue damages or rescind the agreement. Collecting listing history, seller disclosures, inspection reports, the agreement of purchase and sale, and communications is critical. Acting promptly helps preserve your rights and meet limitation periods.

What to Do If You Discover Problems After Closing

If significant defects or misstatements arise after closing, especially if you relied on the seller’s or agent’s statements, contact a real estate lawyer right away. Your lawyer can review the facts and advise whether a claim for negligent misrepresentation or other remedies is possible. Whether your home is in Toronto, Scarborough, North York, or Etobicoke, hiring a real estate lawyer ensures protection during contract review, the closing process, and post-closing issues. Not all misrepresentations are resolved by an “as-is” clause or standard disclosure forms. When buying a home, it is important to have the guidance of a knowledgeable real estate lawyer. Whether you are buying, selling, refinancing, or transferring property, partnering with a real estate lawyer ensures professional guidance throughout your real estate transaction.