Looking back at 2025/26’s most expensive claims and looking forward to new help with claims!
By Chris Johnston, Chief Executive Officer
June 2026
Looking back
As we complete our fiscal year each March 31st, I look back at the year that was and see what we can learn to avoid future claims.
This year’s top five most expensive claims represent our annual wrap-up of the year’s claims activities and offers related links to tips on how to avoid being one of the claims featured next year. Once again, misrepresentation is the most common reason that licensees wind up facing a lawsuit.
The year ending March 31, 2026 saw a return to more level claims numbers with 266 claims reported during the year (compared to a record low of 227 last fiscal year).
Going forward into the balance of 2026 and 2027, we expect there will be some claims against agents who have not kept up with changes in the laws and industry practices such as:
- tenant notices;
- the presumptive inclusion of GST in the purchase price in standard form contracts; and
- valuation and buyers’ remorse claims in difficult markets.
The best way to avoid being the subject of a claim is to stay current in the ever-changing real estate landscape.
While the cases below are our top five most expensive claims for 2025/26, we encourage you to take a few minutes to scan the Risk Report archives for a wealth of risk management advice on how to avoid claims in the first place.
| Cost + claim type (incl. legal fees) | Summary | Suggested reading material |
| $864,572 Negligence/Misrepresentation of title |
A buyer alleged that the seller and seller’s agent had no authority to list the commercial property. | Powers of Attorney: A Minefield for REALTORS® #568 (Jan 2024) Battling funds and title transfer scams (June 2023) |
| $426,645 Negligence on Contract/Valuation |
A seller’s agent was alleged to have been negligent in incorrectly advising their client on valuation and on the proper form of deposit under the contract. | Deposits: considerations and consequences (Sept 2024) Seriously, what’s your deal? (Dec 2022) |
| $399,542 Misrepresentation/Implied agency |
Buyers claimed against the seller’s agent alleging implied agency and that they were given improper advice on the deposits and additional deposits. | Recipe for misrepresentation (March 2022) Misrepresentation video (3 mins) (Dec 2023) Implied agency education – Taking three minutes now can save hours in the future (Sep 2024) |
| $252,566 Misrepresentation of zoning |
The buyer claimed against the seller’s agent for misrepresenting that a property had usable rental units and planning approval. | Recipe for misrepresentation (March 2022) Misrepresentation video (3 mins) (Dec 2023) |
| $216,033 Misrepresentation of use/size |
A buyer claimed against the seller’s agent for misrepresenting the developable area of the property. | Recipe for misrepresentation (March 2022) Misrepresentation video (3 mins) (Dec 2023) Disclaimers – Why you need them in your marketing materials (Dec 2020) |
Stay safe, use the industry resources available, follow the rules and stay in your lane to avoid being featured in one of our most expensive claims next year!
Looking forward
We are delighted to announce the following appointments, which will help us help you resolve and prevent claims.
Long-serving Staff Lawyer Jude Chow has been appointed as the first-ever E&O Risk Management Officer. He will coordinate our loss prevention initiatives and help you avoid claims. He’s well known to our Risk Report audience and has written articles on a wide variety of topics including:
Don’tworry, be happy: A guide to productive worrying- Asked & Answered: Client backing out of a deal? You probably have some questions…
Harkamal Rai has joined E&O as our newest Staff Lawyer this past March. She brings 13 years of helpful litigation experience and is ramping up to assist licensees resolve claims, and co-wrote this edition’s Asked & Answered article.
