A few texts. A showing. A friendly agent who seemed helpful.
The buyer wasn’t “working with anyone” officially.
No paperwork. No contracts.
Just conversations.
And then everything went wrong.
The Deal That Fell Apart
In a real court case in British Columbia, a buyer purchased a large property with plans to develop it. They had a vision, a budget, and a clear goal.
After closing, they discovered something devastating.
Part of the land was suddenly restricted under agricultural zoning rules. Their development plans? Dead. Overnight.
Permits they planned to apply for? Impossible.
The project they invested in? Unusable.
By the time they worked through the mess, the buyer had lost over $1.5 million.
Why Didn’t Anyone Warn Them?
Here’s where it gets uncomfortable.
The real estate agent knew about the zoning issue before closing.
But the buyer thought: “They’re not technically my agent… so they don’t owe me anything.”
That assumption was wrong.
The Invisible Relationship
Even though nothing was signed, the agent had been:
• Answering detailed questions
• Helping with research
• Offering guidance
• Assisting with paperwork
From the buyer’s perspective, it felt like representation.
And the court agreed.
The judge ruled that the agent’s actions made it reasonable for the buyer to believe they were being represented — even without a contract.
That’s called implied representation.
It’s a relationship that forms silently…
without anyone meaning to create it.
Who Was Held Responsible?
The buyer sued.
Not the seller.
The agent and their brokerage.
And they won.
The court found the agent failed to disclose critical information and held them liable. At trial, damages exceeded $1.5 million (later adjusted on appeal, but still significant).
Real money.
Real consequences.
Why This Matters to You
Because most people assume:
“If I don’t sign anything, I’m protected.”
Not always.
Your relationship with an agent isn’t just about paperwork.
It’s about expectations and behavior.
If someone acts like your advisor…
you may treat them like one.
And that’s where confusion — and lawsuits — are born.
The Lesson for Buyers & Sellers
Always be clear about:
✔ Who represents you
✔ What they are responsible for
✔ What they are not responsible for
And get it in writing.
Because in real estate:
The biggest mistakes aren’t always loud.
Sometimes…
they happen quietly.
The Evans Real Estate Group Blog 