What is the legal test for establishing fraud in real estate transactions?

British Columbia, Canada


The following excerpt is from Hildrum v. Hildrum, 2001 BCSC 1577 (CanLII):

Mr. Justice Sigurdson described the required standard in Graham v. Graham, [1997] B.C.J. No. 1973 at paragraph 37, as follows: To succeed in creating a presumption of fraud that the respondent is required to rebut by showing that the agreement was fair, just and reasonable, the petitioner must first demonstrate that the parties were in unequal bargaining positions due to the ignorance, need or distress of the weaker party and second, that the bargain is substantially unfair.

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