Winnipeg Buyers Sue Sellers and Inspector Over Hidden Foundation Cracks
Buyers of a house in Winnipeg are suing the sellers and a home inspector after discovering serious cracks in the foundation, according to a recent lawsuit filed in the Court of King’s Bench at Winnipeg.
Deliberately Hidden Defects
The buyers claim the prior owners “had deliberately and strategically placed storage containers and a recycling container to hide three severe cracks at the foundation adjacent to the garage,” the lawsuit states. The intent, according to the document, was “to hide the latent defects from view.”
…had deliberately and strategically placed storage containers and a recycling container to hide three severe cracks at the foundation adjacent to the garage…
The buyers assert that the sellers issued a property disclosure statement falsely stating they were unaware of the cracks in the foundation of the Linden Woods home, assessed at over $500,000.
Inspector’s Alleged Negligence
The buyers had made a conditional offer to purchase the house and conducted a home inspection by a registered inspector. However, they allege the inspector failed to exercise due diligence and missed the cracks in the foundation.
The plaintiffs are seeking damages from the home inspector for professional negligence, alleging he failed to exercise the diligence expected of a registered home inspector.
Hidden Cracks Lead to Costly Repairs
Once the buyers took possession, they hired a structural engineer who estimated the cost to fix the foundation would be between $40,000 and $50,000.
| Lower Estimate | Upper Estimate |
|---|---|
| $40,000 | $50,000 |
Pro Tip: Sellers’ Disclosure Obligations
No Mandatory Licensing for Inspectors in Manitoba
Manitoba does not have a mandatory provincial licensing program for home inspectors, unlike British Columbia and Alberta. Anne Stacey, Executive Director of the Canadian Association of Home and Property Inspectors (CAHPI), supports licensing and regulation by all provinces.
Remaining Complaints in B.C.
With 458 licensed home inspectors in British Columbia, there have been two consumer complaint files opened so far in 2025, with an average of 6-10 files opened annually since 2009, according to Consumer Protection BC.
Reader Question: How Can Homebuyers Protect Themselves?
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An Uncertain Future for the Homebuyers
The buyers are seeking an unspecified amount of damages from the two people who previously owned the house. The house sellers named as defendants could not be reached for comment.
As the legal process unfolds, it remains to be seen whether the buyers will receive the compensation they seek. The court document alleges that if the plaintiffs had been advised of the cracks, they would not have finalized their offer to purchase the house.
Stay tuned for updates on this developing story, and learn more about home inspection best practices to keep yourself informed and protected.
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