Manitoba homeowner sues realtor, brokerage over alleged ‘substantial’ misrepresentation

A stock image of a For Sale sign is pictured in this undated image. A Manitoba homeowner is suing her real estate agent and brokerage over an alleged misrepresentation of the house. (File photo)

A Manitoba homeowner is taking her real estate agent and brokerage to court, alleging the size of her home was substantially overstated—including a living area advertised as nearly three times larger than its actual size.

In a statement of claim filed in the Court of King’s Bench of Manitoba, Chantal Desjardins alleges realtor Derek Daneault with Royal LePage Prime Real Estate provided incorrect information about the square footage of a home she purchased in the Rural Municipality of East St. Paul.

According to the claim, the property—located north of Winnipeg—was listed in March 2025 as offering more than 12,000 square feet of total space. This included a stated 9,891 square feet of living area and a pool house of more than 4,900 square feet.

The lawsuit says Desjardins purchased the home for $1.05 million later that month and took possession in May 2025 before undertaking “extensive renovations” intended to improve the property.

However, the filing claims the size discrepancy came to light that fall, when a lender commissioned an appraisal as part of a financing application tied to the renovation work.

That appraisal allegedly found the home’s living area measured just 3,332 square feet—roughly one-third of what had been advertised—and that the pool house was more than 1,000 square feet smaller than listed.

“Based on the appraisal and the substantially lower square footage, the lender determined that the requested financing exceeded acceptable lending parameters for a property of that value and declined Desjardins’s application,” reads the lawsuit filed March 13.

As a result, the filing claims she was forced to fund the renovation work herself and was unable to complete the project as planned. The claim estimates renovation costs to date at approximately $950,000, with potential future work required to bring it into saleable condition.

The lawsuit alleges the realtor’s listing contained negligent misrepresentations and that the brokerage, which is listed as a co-defendant in the suit, failed to properly supervise its agent.

“Daneault’s misrepresentations were made carelessly and/or without the proper investigation or verification that would reasonably be expected of a professional realtor in similar circumstances,” reads the lawsuit.

It further claims Royal LePage failed to act “with the skill, competence, and diligence of a reasonable and prudent real estate brokerage.”

According to the claim, both defendants—registered under the Real Estate Services Act—breached their statutory and common law duties, including obligations not to provide misleading information and to act in a way that maintains public confidence in the real estate industry.

The lawsuit also cites the appraisal’s valuation of approximately $400 per square foot, suggesting the property could have been worth just over $3.9 million based on the originally advertised size.

The filing seeks damages estimated at approximately $1.96 million, along with interest and costs. The claim argues this amount reflects the lost financial benefit Desjardins expected from renovating and reselling the property based on the originally advertised size.

It also cites emotional distress, including financial stress and disruption to her family, as part of the damages sought.

CTV News has reached out to the real estate agent and is awaiting a response.

In a statement, Royal LePage Prime Real Estate said it is aware of the claim and will be addressing the allegations through the legal process.

“We stand firmly behind the agent named,” the statement reads in part. The brokerage said it will not be commenting further as the matter is before the courts.

None of the claims have been tested in court, and no statement of defence has been filed.