Tag Archives: SPIS

Negligent Statement about Septic System Leads to Liability

Seller Property Information Statement ~ Boychuk and Butler SPIS ~ Boychuk and Butler Ontario Real Estate Source   By Brian Madigan LL.B. This is another case involving the improper completion of a Property Condition Disclosure Statement and the remedies that are available afterwards. This PCDS document is much like the Seller Property Information Statement used [...]

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Buyer’s Opportunity to Examine Condo Documents Relieves Seller From Liability

Seller Property Information Statement ~ Sask and Brooke SPIS ~ Sask and Brooke Ontario Real Estate Source   By Brian Madigan LL.B. This was a case heard in the Supreme Court of British Columbia and it involved the Property Condition Disclosure Statement, which is similar to Ontario’s Seller Property Information Statement. Briefly, the plaintiff as [...]

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Disclosure ~ Royt and Goldenberg

Seller Property Information Statement ~ Royt vs. Goldenberg This is a case which involves the discussion of the Seller Property Information Statement (SPIS) and its effect on the outcome of a proposed real estate transaction. A review of the case will be limited to the SPIS issue. Briefly, Mr, and Mrs Royt submitted an Offer [...]

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No Knowledge No Need to Disclose

Disclosure ~ No Knowledge, No Liability By Brian Madigan LL.B. (Ontario Real Estate Source) The Cartwright and Fornier case is another in the series of Property Disclosure Statements giving rise to litigation after closing. The parties entered into an agreement in November 2003 to close 14 April 2004. The matter came on for trial in [...]

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Both Seller’s and Buyer’s Agents Sued over False Disclosure

Both Agents at Risk over False Disclosure Statement By Brian Madigan LL.B. (Ontario Real Estate Source) The Lance vs. Wright case came before the Supreme Court of British Columbia in 1997 and involved the use of the Property Condition Statement. Mr. and Mrs. Lance purchased a property from Mr. and Mrs. Wright. Subsequent to the [...]

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Honest Vendor Not Liable For Defects

Honest Vendor Escapes Liability in SPIS case By Brian Madigan LL.B. (Ontario Real Estate Source) The case of Cotton and Monahan was tried in the Superior Court of Justice in Ontario over a 10 day trial, heard in December 2009 and January 2010. The reasons for Judgment were released 30 April 2010. The Cottons bought [...]

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Disclosure Laws and the Use of the SPIS

Disclosure Laws and the Use of the SPIS By Brian Madigan LL.B. I am pleased to announce that I have been designated by the Real Estate Council of Ontario as an Education Provider pursuant to the provisions of the Real Estate and Business Brokers Act, 2002 (Act). I am also pleased to announce that the [...]

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Realtor’s Disclosure Role

Real Estate Agent ~ Disclosure Issues By Brian Madigan LL.B. There are basic rules that apply to realtors concerning disclosure. Everyone who is permitted to trade in real estate under the Real Estate and Business Brokers Act, 2002 is subject to both the common law and the RECO Code of Ethics. Organized real estate, and [...]

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Agent Cannot Force Seller to Provide Warranty

Agent Cannot Force Seller To Provide Warranty By Brian Madigan LL.B. The Bird and Ireland matter is another interesting case involving the use of the Seller Property Information Statement (SPIS), not for the purpose for which it was intended, but for other purposes. This particular matter came on by way of appeal from a lower [...]

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Disclosure Statement Not Part of Agreement ~ Buyer Left Without Remedy

Disclosure Statement Not Part of Agreement ~ Buyer Left without Remedy By Brian Madigan LL.B. The Csada and Williams lawsuit is a case which involves the use of the Property Condition Statement in the Province of Saskatchewan pursuant to the terms of a residential agreement of purchase and sale. Mr. and Mrs. Csada submitted an [...]

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Half-Truth by Seller Leads to Liability

Half-Truth by Seller Leads to Liability By Brian Madigan LL.B. The lawsuit Alevizos and Nirula is another Property Condition Disclosure Statement case. This case came before the Manitoba Court of Appeal for consideration in 2003. It is the highest Court yet to discuss this document, since no cases have reached the Supreme Court of Canada. [...]

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False Real Estate Disclosure and the Family Court

False Disclosure Statement Leads to Family Court Contempt By Brian Madigan LL.B. The Zadegan and Zadegan matter is a very unusual case involving the use of a Seller Property Information Statement. Actually, the SPIS formed part of the evidence in a contempt of court matter in Superior Court of Justice (Family Division) before Justice Mackinnon in Ottawa [...]

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Easement Defect Entitles Purchaser to Rescind

SPIS ~ Statement Fails to Disclose Material Easement By Brian Madigan LL.B. The Macdonald and Robson matter was an application in the Superior Court of Justice of Ontario for an order rescinding an agreement of purchase and sale. The purchaser Mr. Macdonald had submitted an offer to acquire certain property owned by the vendor Robson. [...]

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Active Concealment of Damage Eliminates “Caveat Emptor”

Answering “Unknown” is Active Concealment in Disclosure Document By Brian Madigan LL.B. Mr. and Mrs. Whaley purchased a small house from the vendors Mr. and Mrs. Dennis in 2002 . The property was located in the Niagara Peninsula and was intended to be the retirement home of the purchasers. The case of Whaley vs. Dennis [...]

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Insurance Backs Up Disclosure Statements

Insurance Backs Up Disclosure Statements By Brian Madigan LL.B. The Miersma and Pembridge case was an application brought in October 2005 before the Superior Court of Justice of Ontario to determine whether a policy of insurance covered a false statement under a Seller Property Information Statement (SPIS) pursuant to an agreement of purchase and sale. [...]

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False Disclosure: No Warranty for Water Damage

False Disclosure: No Warranty for Water Damage By Brian Madigan LL.B. This case of Morrill and Bourgeois came on for trial in Superior Court of Justice at Thunder Bay in 2007. Matthew Morrill purchased a property in Thunder Bay from Mr. and Mrs. Bourgeois. They acquired the residence in 2004 from Mrs. Bourgeois’ grandmother who [...]

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Buyer’s Contributory Negligence

Buyers Assessed Partial Responsibility for Sellers’ False Disclosure Statement By Brian Madigan LL.B. The Karwandy and Sebastien case is another in the series of improperly completed Property Condition Statements. This was an action heard in the Small Claims Court at Regina, Saskatchewan in 2002. In the spring of 2001, Albert Sebastien, sold a quarter section [...]

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Careless Completion of Disclosure Statement Sufficient to Find Liability

Careless Completion of Disclosure Statement Sufficient to Find Liability By Brian Madigan LL.B. The Usenik and Sidorowicz lawsuit is another case in the line of improperly completed Seller Property Information Statements by vendors. Briefly, the purchaser Rhonda Usenik wanted a good house that was in good condition and largely maintenance free. She saw the vendors’ [...]

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Clever Avoidance of Disclosure Creates Liability

Clever Avoidance of Disclosure Creates Liability By Brian Madigan LL.B. The Kaufmann and Gibson case involves the improper completion of the Seller Property Information Statement by the vendors. The Kaufmanns resided in London, Ontario and acquired their residence in 1981. The original house had been constructed in the 1950’s. They are sophisticated vendors, and although [...]

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Seller Cover-Up Not Enough to Avoid Liability (false disclosure)

Seller Cover-Up Not Enough to Avoid Liability By Brian Madigan LL.B. The Cole and Vankoughnett case involves representations and remedies available for improper completion of the Seller Property Information Statement (SPIS). The purchasers brought an action in Small Claims Court for misrepresentation, and non-disclosure of patent defects and latent defects in respect to a semi-detached [...]

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