What is the common law duty of a seller to disclose known defects to a buyer when selling a used vehicle?

British Columbia, Canada


The following excerpt is from Hanson v. Holden, 2021 BCCRT 862 (CanLII):

20. Apart from misrepresentation that I discuss below, the principle of ‘buyer beware’ generally applies to a private used vehicle sale. It means that the buyer assumes the risk that the purchased vehicle might be either defective or unsuitable to their needs (see Conners v. McMillan, 2020 BCPC 230). In Conners, the court concluded there is no common law duty for a seller to disclose known defects, though they cannot actively conceal them. In short, a buyer is generally responsible for failing to adequately inspect a good before buying it.

21. However, in British Columbia the ‘buyer beware’ principle is limited by the warranties set out in section 18 of the Sale of Goods Act (SGA). Section 18(c) applies to private sales like this one and requires that the goods sold be durable for a reasonable period with normal use, considering the sale’s context and surrounding circumstances (see Drover v. West Country Auto Sales Inc., 2004 BCPC 454).

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