Caveat Emptor – Buyer Beware

Real Estate law in Nova Scotia is grounded in the very old legal concept, ‘caveat emptor’, which is ‘Buyer Beware’. The idea being, no one is forcing you to buy the property, so before you sign on the (digital) line, the onus is on you to ensure you really want what they are selling. That’s why you have the option to ask for permission to do a thorough home inspection and have a Property Disclosure Statement produced.

A Common Issue – Water Intrusion

However, for any number of reasons, sometimes things get missed and you find yourself with a new to you home that has issues. One of the most common issues that arise in Nova Scotia is water intrusion. This can come in the form of leaks from underperforming shingles, cracks in the foundation and septic or plumbing issues. The damage can be wide reaching and the cost to both repair existing damage and prevent future damage can be huge.

Options if you discover water intrusion prior to closing

No doubt, had you known about the issue prior to purchase, you could have resorted to one of these three options:

1. walk away from the purchase altogether;

2. ask for a reduction in price to account for repairs; or

3. insisted that the repairs be completed to your satisfaction prior to closing.

Options if you discover water intrusion after closing

But you didn’t know about the issue, so now what are your options?

Quantify Your Damages

The first step is always to quantify your damages. If you are going to seek compensation from the seller, you need to know how much the issue is going to cost you. You can either do the repairs and be armed with receipts or you can get a quote.

Consult with a Lawyer

Once you know how much you are out, it’s always a good idea to speak to a lawyer to understand the options available to your specific circumstance. In many cases, the lawyer may be able to give you enough assistance upfront that you can handle the rest of the negotiations on your own. If you want to consult with one of our lawyers in this sort of circumstance you can book our no obligation Issue Review Consult.

Send a Demand Letter

Usually, the first step is to contact the seller through their lawyer via a letter which outlines what has happened and demands compensation. In some cases, this is enough to start the ball rolling on negotiation. However, it the letter is ignored or they flat out refuse to discuss compensation then a follow up letter from a lawyer with a similar demand may be necessary.

Start a Law Suit in Nova Scotia Small Claims Court for up to $25,000

If the letters do not produce a settlement, then your next option is to sue them. In Nova Scotia, you can sue for up to $25,000 in Small Claims Court. This can be done without the help of a lawyer, but for larger amounts many people do use the services of a lawyer. You can have a decision through Nova Scotia Small Claims court within a number of months. Our blogs on the topic of suing in Nova Scotia Small Claims Court may be helpful to review:

·         HOW TO SUE SOMEONE IN SMALL CLAIMS COURT IN NOVA SCOTIA

·         Can I Represent Myself in Small Claims Court in Nova Scotia

Start a Law Suit in Nova Scotia Supreme Court for Damages over $25,000

If your damages total more than $25,000 than you’ll need to sue in Supreme Court. These cases are almost always handled by lawyers and unfortunately can take more than a year to resolve.

Chances of Success

Whether the court will agree with your claim and award you the damages you are seeking is entirely dependant on the facts presented to the court. It is always the claimant’s burden to PROVE to the court that what they are claiming is true.  In these sorts of cases, that would mean that you will have to prove to the court that:

a)       the seller was aware of the issue;

b)      that they deliberately hid it from you (or lied about it); and

c)       that it was a latent defect that you could not have discovered on your own with due diligence prior to the sale. (Sellers only have to disclose latent defects, not patent defects – if you want to learn a little more about patent vs latent defects you can check out our blog Why should I care about the Difference between Patent and Latent defects?

Unfortunately, in these types of cases, it has proven difficult to meet this test. However, it’s not impossible and if you feel that the seller’s did withhold critical information with respect to water intrusion then you do deserve to be compensated.

By: Dianna M. Rievaj, Founding Lawyer

Have Questions For Us?:

If you have any questions about an issue with a property in Nova Scotia process, you can call us at (902) 826-3070 or email us at info@highlanderlaw.ca to set up a meeting with one of our lawyers at our Tantallon law firm. You can also schedule a no commitment Issue Review Consult for $250+HST where you have the opportunity to explain your situation to a lawyer and get basic advice before deciding whether or not you'd like to retain us.

The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice. Nothing contained on this blog is legal advice or constitutes a legal opinion. While it is our goal to provide information which is current, legislative changes and court decisions, among other matters, may result in some information no longer being current or accurate. You should consult a lawyer before relying on any information. The views expressed herein by individual contributing lawyers posting entries to the blog are solely those of the authors and should not necessarily be attributed to or considered representative of the firm of Highlander Law Group Lawyers