What is the test for misrepresentation in a real estate transaction?

13. A seller must exercise reasonable care to ensure representations are accurate and not misleading. A failure to exercise this reasonable care is called negligent misrepresentation. If a buyer relies on that misrepresentation in making the purchase, the seller may be responsible for any losses arising from that misrepresentation (see Queen v. Cognos Inc., 1993 CanLII 146 (SCC)).

14. Fraudulent misrepresentation occurs when a seller makes a representation of fact, the representation is false, the seller knew it was false or recklessly made it without knowing it was true or false, and the buyer was induced by the false representation to buy the item (see Ban v. Keleher, 2017 BCSC 1132).