Caveat Emptor
Learn what caveat emptor means in Canadian real estate, how it affects buyer responsibility, and why inspections are critical under this principle.
May 22, 2025
What is Caveat Emptor?
Caveat emptor is a Latin phrase meaning 'let the buyer beware,' which places the responsibility on buyers to perform due diligence before completing a purchase.
Why Caveat Emptor Matters in Real Estate
In Canadian real estate, caveat emptor applies to property transactions, particularly resale homes. Unless fraud or misrepresentation occurs, sellers are not obligated to disclose all defects, especially visible ones.
Implications include:
- Buyers must inspect the property carefully
- Sellers must disclose only latent (hidden) material defects
- Home inspections are essential to minimize risk
While consumer protection laws have evolved, caveat emptor still plays a legal role. Buyers who waive inspection conditions may face greater exposure to post-sale issues.
Understanding caveat emptor emphasizes the importance of due diligence and professional inspections before finalizing a real estate purchase.
Example of Caveat Emptor
A buyer later discovers a leaky basement that was visible but not disclosed. Under caveat emptor, the responsibility lies with the buyer, not the seller.
Key Takeaways
- 'Let the buyer beware' principle.
- Buyers must inspect and investigate.
- Sellers only disclose hidden material issues.
- Still legally relevant in resale homes.
- Risk increases if inspection is waived.
Related Terms
- Home Inspection
- Material Defect
- Latent Defect
- Conditional Offer
- Buyer Risk
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501 W Georgia Street (1), 595 W Georgia Street (2), and 388 Abbott Street (3) in downtown Vancouver. / Henriquez Partners Architects, Holborn Group
A rendering of the rooftop amenity space between the South Tower (left) and North Tower (right) planned for 501 W Georgia Street. / Henriquez Partners Architects, Holborn Group
A ground-level rendering from the corner of Richards Street and Dunsmuir Street. / Henriquez Partners Architects, Holborn Group
A rendering of the public plaza at the corner of Seymour Street and W Georgia Street (left) and the retained heritage Randall Building (right). / Henriquez Partners Architects, Holborn Group
A rendering of the three-level observation deck and restaurant at the top of the 68-storey hotel planned for 595 W Georgia Street. / Henriquez Partners Architects, Holborn Group
A rendering of the 63-storey North Tower planned for 501 Georgia Street (left) and the 68-storey hotel planned for 595 W Georgia Street. / Henriquez Partners Architects, Holborn Group
The ground-level layout planned for 501 W Georgia Street and 595 W Georgia Street. / Henriquez Partners Architects, Holborn Group
A rendering of the 38-storey social housing tower planned for 388 Abbott Street in Vancouver. / Henriquez Partners Architects, Holborn Group 
A ground-level rendering of the tower planned for 388 Abbott Street in Vancouver. / Henriquez Partners Architects, Holborn Group 
Renderings of the Indigenous art gallery (left) within the 38-storey social housing tower planned for 388 Abbott Street. / Henriquez Partners Architects, Holborn Group 
Attorney General and former-Minister of Housing Sean Fraser spoke about the launch of Build Canada Homes at a media event in Nova Scotia. / Sean Fraser, Twitter