Buyers Not Allowed To Terminate Purchase Due To Size Misdescription Or Building Permit Concerns

While the discovery of misdescriptions as to the size of a property or unpermitted renovations may allow a buyer to terminate a purchase transaction, that is not always the case. Whether a description of the size of the property is a material factor not only depends on the written representations as to the size of the property but the buyer's visual investigations. As to building permits, a buyer should proactively investigate any concerns and raise the specific issues in a timely manner. The Ontario Superior Court of Justice addressed each of these issues in Lamba v. Mitchell, 2021 ONSC 1612 (CanLII).

In July 2020, the sellers listed their residential bungalow in Mississauga for sale. The MLS listing represented the interior of the house to be approximately 2500-3000 square feet. This representation overstated the size of the house unless the lower level of the bungalow was included in the calculation, as the main floor ("above grade") was 2155 square feet and the