May 4th - 2004

Merv's Column Farm Fraud

The sellers made several false representations when selling their ranch about the coverage of the irrigation pivots, the ton per acre production, the yield of calves and average weight and price,

The sellers made several false representations when selling their ranch about the coverage of the irrigation pivots, the ton per acre production, the yield of calves and average weight and price, the yield of hay and price per bale, the sales of calves and weight and price and the quality and usage of the irrigation well. When the buyers discovered that the irrigation pivot was incorrect the Realtor prepared some documents that purported to protect themselves and the sellers for that error. The buyers cancelled the transaction. Later they decided to put in another offer and a deal was made at $950,000.

After the buyers took possession they discovered that the other information was also not true. The well was 'salty' and the crop and animal sale information was grossly misrepresented. They sued the sellers for
fraudulent misrepresentation.

The sellers were shown to have known that the information was false. In fact, parts of the female seller's diaries clearly implicated them. She said, "I should have burned them." When the male seller was confronted with these false statements he told the buyers to sue his Realtors since they "should have checked" and "they have insurance."

The Judge was not impressed with the evidence of the sellers or of their expert witnesses and preferred the evidence of the buyers and their witnesses. The buyers overpaid for the ranch by $440,000 and had additional expenses of $90,000 and loss of profits of $500,000 for a total award of $1,030,000.

Wiebe v Gunderson 2003 BCSC 1282

Share this item

Buyer agency course on CD-ROM Cellphones, Internet top list of REALTOR “must have” technology

For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Senior Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246

Ontario Real Estate Association
Facebook LinkedIn YouTube Instagram

The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

OREA AI Assistant