Humber/Ontario Real Estate Course 4 Exam Practice

If a seller falsely represents the condition of a property’s roof in an SPIS and the buyer discovers significant damage post-closing, legally the buyer:

1. Can hold the seller responsible for repair costs

2. Automatically loses the right to pursue legal action

3. Can demand the seller split the cost of repairs

4. Must cover all repair costs independently

5. Is protected by REBBA regulations

6. Can terminate the contract retroactively

The correct answer is: Can hold the seller responsible for repair costs

The buyer can hold the seller responsible for repair costs if the seller has falsely represented the condition of the property's roof in a Seller Property Information Statement (SPIS). This falls under the principles of misrepresentation, where the seller is legally obligated to provide accurate information about the property. When a seller knowingly provides false information, they may be liable for the damages incurred by the buyer as a result of that misrepresentation. The legal framework surrounding property transactions generally upholds the principle that buyers should be able to rely on the disclosures made by sellers. Therefore, when significant damage is discovered after closing — and this damage was misrepresented — the buyer has a valid claim to seek damages from the seller, which could include the cost of repairs. It's important to understand that this option reflects the buyer's rights under contract law and does not negate potential defenses the seller might raise. However, the overarching principle is that intentional misrepresentation can lead to liability for the seller in this context.