In the course of real estate transactions, fraudulent misrepresentations can cause serious losses or damages. It’s a situation that real estate litigators at the Vancouver law firm, Hoogbruin & Company, say can quickly become complex and costly and would benefit from a review by qualified real estate lawyers.
For a representation to be fraudulent, the person making it must know that it is false or the maker of the statement must have reckless disregard as to whether it is true or false.
By engaging legal counsel experienced in real estate law, you have a good chance to prove fraud and increase the likelihood of recovering damages from those responsible. With fraudulent misrepresentation the claimant may claim rescission and damages.
The elements of fraudulent misrepresentation have been set out by our Courts, as follows:
- the vendor makes a representation of fact to the purchaser;
- the representation is false in fact;
- the vendor knows the representation is false when it is made, or makes the false representation recklessly, not knowing if it is true or false;
- the vendor intends the purchaser to act on the representation;
- the purchaser is induced to enter into a contract in reliance upon the false representation and thereby suffers a detriment.
To review: a person commits fraud by making a false representation of fact. Fraud is intentional deception and can occur through words or action.
In summary, there are several types of misrepresentation. We discussed ‘innocent’ and ‘negligent’ misrepresentations in part 1. If you feel you are a victim of either one of these, or of the fraudulent type discussed in this post, reach out to consult with us.
Choosing a lawyer with a significant amount of experience in real estate litigation can help ensure that you are working with someone who is aware of the best way to approach your case and to get the best possible outcome. At Hoogbruin & Company, our team of lawyers have a wealth of knowledge and experience in real estate disputes.