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ARTICLE · 16 OCTOBER 2020

Caveat Emptor Applied To Alleged Basement Flooding Damage

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The plaintiffs re-listed and sold the property in May, 2018, for $925,000. They sued the defendant for damages relating to the lower sale price.

CanadaIntellectual Property

In Giancola v. Dobrydnev, 2020 ONSC 6007 (CanLII), the Ontario Superior Court of Justice rejected a buyer's attempt to terminate an agreement to purchase a home after finding alleged flood damage in the basement.

In July 2017, the defendant had agreed to purchase a property in Vaughan, Ontario for $1,167,000. After the Agreement was signed but prior to the scheduled closing, the buyer approached the plaintiff sellers directly and requested that they provide a vendor take-back mortgage in the amount of $150,000. This was refused and the defendant failed to complete the purchase.

The plaintiffs re-listed and sold the property in May, 2018, for $925,000. They sued the defendant for damages relating to the lower sale price.

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