Couple allege inspector failed to warn them before closing
A Winnipeg couple is suing their home inspector and the previous owners of their newly purchased home, alleging they were misled about serious foundation damage that could cost tens of thousands of dollars to repair.
The buyers say they discovered three serious cracks in the foundation shortly after taking possession of the home in the summer of 2023, according to a statement of claim filed on May 1 in Manitoba’s Court of King’s Bench. The home, located in the Linden Woods neighbourhood, has an assessed value of over $500,000.
The lawsuit alleges the previous homeowners “deliberately and strategically placed storage containers and a recycling container to hide three severe cracks at the foundation adjacent to the garage.” The buyers claim this was a calculated attempt “to hide the latent defects from view.”
The plaintiffs also assert that the sellers submitted a false property disclosure statement, claiming to have no knowledge of foundation cracks. After taking ownership, the new homeowners hired a structural engineer to assess the damage. Based on that assessment, a foundation repair contractor estimated the cost of repairs to be between $40,000 and $50,000.
The buyers had made a conditional offer on the property and hired a certified home inspector, registered with the Canadian Association of Home and Property Inspectors (CAHPI), prior to finalizing the purchase. However, they now allege the inspector failed to identify the hidden defects during the inspection.
The lawsuit accuses the inspector of professional negligence, claiming he did not exercise the level of diligence expected of a CAHPI-certified professional.
According to the claim, the inspector later responded that he was not responsible because “the cracks were hidden from view by the storage containers and recycling bin strategically placed in front of the defects.”
The plaintiffs counter that the containers in the basement “could easily have been moved” by the inspector, and his failure to do so meant they were never warned about the foundation issues.
“If the plaintiffs had been advised of the cracks, they wouldn’t have finalized their offer to purchase the house,” the statement says.
Lack of mandatory inspector licensing
The lawsuit also names a business associate of the home inspector, as well as two companies the inspector worked with, as co-defendants.
As of now, no statements of defence have been filed, and the allegations have not been tested in court.
The case also raises questions about regulation in the home inspection industry. Manitoba does not require home inspectors to be licensed, unlike provinces such as British Columbia and Alberta, which have implemented regulatory programs.
Anne Stacey, executive director of CAHPI, confirmed that Manitoba currently has 16 certified members and emphasized the organization’s support for mandatory licensing nationwide.
“The association would support licensing and regulation of the profession by all provinces,” Stacey said.
While BC has had licensing in place since 2009, complaints remain rare. Consumer Protection BC reports just two consumer complaint files opened so far in 2025, with 20 regulator-initiated files in 2023 and seven in 2024, primarily related to insurance or contract clause issues.
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