Digest: Lacey v Ostapowich, 2017 SKPC 91

• Date: November 17, 2017

Reported as: 2017 SKPC 91

Docket Number: SC 469/16 , PC17123

Court: Provincial Court

Date: 2017-11-17

Judges:

• Lavoie

Subjects:

• Professions and Occupations � Realtors
• Real Estate � Sale of House � Negligent Representation
• Torts � Negligence

Digest: The plaintiffs brought an action in negligence against the defendant realtor. They allege that he failed to exercise due care in providing the square footage of a house in its listing documents. The square footage was overstated and incorrect. The plaintiffs claimed damages of $30,000 based upon an allegation that the price they paid was greater than what the house was actually worth because the square footage advertised was 100 square feet less than the actual size. They purchased the house in 2011 for $585,000 and they sold it in 2016 for $540,000. The realtor who sold the property for the plaintiffs in 2016 noted the discrepancy between the measurement in the 2011 listing and his measurements. He checked the municipal property assessment records and confirmed that the defendant�s figure was incorrect. He testified that the factors that affected the sale price were the actual square footage and the softening of the resale market since 2011. A certified real estate appraiser testified that in his opinion the error in the square footage could have had an effect on market value of approximately $5,000. The defendant testified that he measured the property twice but admitted that he did not check the property assessment records that showed a difference from his calculations.
HELD: The plaintiffs were given judgment. The court found negligent misrepresentation on the part of the realtor. It concluded that the measure of damages was the difference between the purchase price paid by the plaintiffs and the actual fair market value of the house at the time of purchase in 2011 and based upon the appraisal report, the amount was $5,000.

Cases Considered:

• Anchor Fence Inc. v Polaris Realty Corp., 1994 CanLII 9020, [1994] 10 WWR 574 Forbes v Morrison, 2014 SKQB 40, 437 Sask R 124 Fraser River Pile & Dredge Ltd. v Can-Dive Services Ltd., [1999] 3 SCR 108, [1999] 9 WWR 380, 176 DLR (4th) 257, 67...