Duty of Real Estate Agent

The Court of Appeal for Ontario, in a July 7, 2026 decision, considered an appeal in a real estate purchase brought by the clients of real estate agent, Chisvin, and the dismissal of their third-party claim against the agent and broker. (Painchaud v. Krimker, 2026 ONCA 494)

The case arose from an unsuccessful residential real estate purchase involving an expensive property. The Krimkers had retained Chisvin as their real estate agent and his brokerage to assist with the purchase. The Krimkers entered into an unconditional agreement of purchase requiring a substantial deposit but elected not to proceed and never delivered the required deposit. The Krimkers alleged that they believed they could withdraw from the transaction by signing a mutual release. They further argued that Chisvin had represented the mutual-release provision as an “escape hatch.” Chisvin acknowledged that he did not correct their misunderstanding or advise them that failure to provide the deposit would constitute a breach of the agreement. Chisvin also admitted that he lied to the vendors and their agent by telling them the purchase was proceeding. The vendors subsequently brought suit against the Krimkers for breach of contract.

After settling the vendors’ lawsuit, the Krimkers brought a negligence claim against Chisvin and his brokerage. The trial judge dismissed the claim. Although recognizing that Chisvin owed fiduciary duties to the Krimkers and criticized his lack of records and dishonesty toward the vendors, the judge determined that Chisvin had not actively misled the Krimkers concerning their ability to withdraw from the agreement and to escape liability. The Trial Court accepted Chisvin’s evidence that “he did not tell the [appellants] if they did not pay the deposit, the Mutual Release Clause would absolve them of any liability.”

This is a free article from the July/August 2026 edition of Professional Licensing Report (PLR). Subscribe to Professional Licensing Report (PLR) to access the full edition today.