What is the test to prove fraudulent misrepresentation in the purchase and sale of a residential property?

British Columbia, Canada


The following excerpt is from Huang v. Dumonceaux, 2022 BCCRT 105 (CanLII):

35. In Ban v. Keleher, 2017 BCSC 1132, the court said that in order to prove fraudulent misrepresentation in the purchase and sale of a residential property, the applicant must show that: a. The respondent made a representation of fact to the applicant, b. The representation was false, c. The respondent knew that the representation was false when it was made, or made the false representation recklessly, d. The respondent intended for the applicant to act on the representation, and e. The applicant was induced to enter into the contract in reliance upon the false representation and suffered a detriment.

36. To prove negligent misrepresentation, the applicant must establish 5 elements (see: Hanslo v. Barry, 2011 BCSC 1624): a. There must be a duty of care, b. The representation in question must be untrue, inaccurate, or misleading, c. The respondent must have acted negligently in making the misrepresentation, d. The applicant must have reasonably relied on the negligent misrepresentation, and e. The reliance must have resulted in damages.

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