What is the standard of care of a real estate agent in showing a property to prospective purchasers?

Alberta, Canada

The following excerpt is from Grisack v. Smith, 1985 CanLII 1463 (AB QB):

The position of real estate agents in showing properties to prospective purchasers is difficult, to say the least, in that they are the agent of the vendor from whom they will earn their commission and as such are anxious to conclude a sale. They know, or ought to know, that most information sought by a potential purchaser on such occasions is relevant to the purchaser and will be relied on by the purchaser in making a decision whether or not to purchase the property. I am satisfied that a competent real estate agent has that basic understanding and, therefore, the standard of care required of such an agent in performing his duty to a potential purchaser is to be not only honest in expressing an opinion but also to have some valid factual basis for any opinion expressed. If the agent has no valid factual basis for expressing an opinion, then the agent ought to state that fact or qualify the opinion expressed so that the purchaser knows what reliance can be given to the opinion or at least be warned not to rely solely on the same. In my opinion, this duty corresponds to and is the factual basis upon which Hedley v. Byrne (supra) applies.

Other Questions

What is the effect of proximity between investors in a real estate transaction where the real estate agent is selling real property in real estate? (Alberta, Canada)
Is a real estate agent an agent for the purchaser? (Alberta, Canada)
Can a party who has a right of first refusal to purchase a property that is encumbered by a right-of-first refusal be prevented from purchasing the property? (Alberta, Canada)
Is there a vicarious liability for the negligence of a real estate agent to properly inform himself of the property? (Alberta, Canada)
What are the circumstances in which a plaintiff was able to purchase quiet enjoyment of their existing property by acquiring any property other than the settlement lands? (Alberta, Canada)
What are the circumstances in which execution/enforcement creditors obtained interest in the property of one spouse's property after the other spouse commenced an action for division of matrimonial property? (Alberta, Canada)
What is the test for an agent to sell a property at a reasonable price? (Alberta, Canada)
Does a son who is encouraged by his father to build a home at his own expense on the father's property have the right to call for conveyance of the property? (Alberta, Canada)
Is there a resulting trust where a non-titled party has contributed directly or indirectly to the acquisition by the title holder of the property or the improvement of such property? (Alberta, Canada)
What is the case law on division of property where inflation and the increase in the value of the property since the time of trial is due to inflation? (Alberta, Canada)

Alexi white

"The most advanced legal research software ever built."

Trusted by top litigators from across North America.