Focus: Case highlights negligent representation

A recent case demonstrates any breakdown in the five-way test required to establish negligent misrepresentation in real estate transactions will result in a failed claim.

In Drolet v ReMax Riverview Realty, plaintiff Jean-Sebastien Drolet sought compensation from the real estate agent for money the plaintiff spent preparing a piece of property for the development of a home, only for Drolet to find after the sale closed that he was prohibited from building anything due to the land’s proximity to a nearby former landfill.

The plaintiff’s claim was unsuccessful because he was unable to establish two of the required elements.

Lisa Laredo of Laredo Law in Toronto says honesty is indeed the best policy when it comes to defending an accusation of negligent misrepresentation.

“The key requirement is that the vendor be honest,” observes Laredo.

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