Vendors misrepresented scope of work performed

Vendors purchased home in August 2008 and began renovations. Purchasers agreed to purchase home in October 2008 although renovations were not completed. Home inspection found cracks in foundation. Statutory declaration sworn by vendors included representation that there was no structural modification to home. Purchasers completed purchase in November 2008. In 2009, purchasers discovered leak in basement. Vendors repaired leak. In 2011, water penetrated wall of basement. Contractor discovered damaged concrete blocks in foundation and that someone had installed steel posts to take weight of structure off of damages blocks. Purchasers commenced action two years after receipt contractor’s report. Vendors brought motion for summary judgment to dismiss action as statute-barred. Motion dismissed. Vendors misrepresented scope of work performed by neglecting to mention reinforcing of basement wall and concealing problem of deteriorated blocks. Leak in 2011 was on opposite wall from leak in 2009. It was reasonable for purchasers to retain contractor to repair damages before commencing action. 

Burns v. 1681758 Ontario Inc. (2017), 2017 CarswellOnt 11858, 2017 ONSC 4051, Martin James J. (Ont. S.C.J.).