The plaintiffs, Suzanne and Joyce Powell, purchased a house that subsequently revealed significant water leakage and mould issues.
They sued the previous owner, Tadeusz Lojko (who settled), and their real estate agent, Barbara Kirby, and her brokerage, Royal Lepage Real Estate Services Ltd., for negligence and breach of professional duties.
The court found that the agent failed to adequately advise the plaintiffs regarding the risks of not obtaining an independent home inspection or reviewing the full seller-provided report, especially given the plaintiffs' financial vulnerability and the summary report's indications of potential issues.
However, the plaintiffs were also found partially responsible due to Suzanne Powell's strong determination to purchase the property.
The court apportioned liability: 25% to the agent and brokerage, 25% to the plaintiffs for their own loss, and the remaining 50% to the seller (Lojko) as per the Pieringer Agreement.
Damages for repairs and lost rent were assessed.
