REALWorld Law

Sale and purchase


What are the buyer's remedies against misrepresentation by the seller of real estate?



The buyer is at liberty to treat the agreement as terminated and thereby claim damages. The parties may by their agreement specify the amount of the damages payable by inserting a limitation of liability clause in the agreement.

Generally, the buyer will be entitled to recover damages to cover any losses suffered as a result of the seller’s misrepresentation.

The nature of the misrepresentation will determine the action that the buyer may pursue against the seller. Where upon investigations, the seller is shown to have been deliberately fraudulent in the misrepresentation to the buyer, the Police and other agencies of state may prosecute the seller under the relevant extant criminal laws in the country.