A Manitoba homeowner is taking the listing agent who sold her a property and his brokerage to court, alleging the home was substantially misrepresented in size, advertised at nearly three times its actual square footage.

In a statement of claim filed in the Court of King’s Bench of Manitoba, Chantal Desjardins alleges real estate agent Derek Daneault of Royal LePage Prime Real Estate provided incorrect square footage information for a property she purchased in East St. Paul, about 20 minutes outside of Winnipeg.

The property was listed in March 2025 as offering more than 12,000 square feet of total space, including 9,891 square feet of living area and a pool house exceeding 4,900 square feet. Desjardins purchased the home for $1.05 million later that month and took possession in May 2025, after which she undertook extensive renovations, many of them completed by her husband, reads the claim.

The numbers don’t match, says buyer

The size discrepancy allegedly came to the surface that fall, when Desjardins sought financing to support the ongoing renovations. 

A lender commissioned an appraisal as part of a financing application. That appraisal 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, reads the claim.

“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 of her reliance on Daneault’s misrepresentations of the house’s size, Desjardins was forced to personally fund renovations that she reasonably expected to finance and was unable to complete the scope of renovations necessary to achieve the projected enhanced value and resale potential.” 

A flip project derailed

Renovation costs to date are estimated at approximately $950,000, with potential future work still required to bring the property into “saleable condition,” reads the statement of claim.

The lawsuit also cites the appraisal’s valuation of approximately $400 per square foot, or $2 million upon completion of the renovations.

“Desjardins reasonably expected that the house, once renovated, could be sold for approximately $3,956,400.00, and planned the scope of renovations on that basis,” reads the claim.

The filing seeks damages estimated at approximately $1.96 million, along with interest and costs, reflecting the lost financial benefit Desjardins expected from renovating and reselling the property.

Emotional distress, including financial stress, loss of time and energy invested into renovations and disruption to her family, which includes two children under the age of three, are also cited as part of the damages sought.

Allegations of misrepresentation

The lawsuit alleges the listing contained negligent misrepresentations and that the brokerage, named as a co-defendant, 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 claim. It further alleges Royal LePage failed to act “with the skill, competence, and diligence of a reasonable and prudent real estate brokerage.”

Both the agent and the brokerage are alleged to have breached duty of care and common law.

What could happen next

Jason Bryk, a real estate lawyer and partner at Pitblado Law in Winnipeg, says the case’s outcome is hard to predict and that a settlement is possible.

Bryk says what stands out about this case is the scale of the discrepancy. “I think what’s unusual about this case is the sheer discrepancy in size. For the life of me, I don’t understand how the buyer couldn’t identify that it was substantially smaller.”

He also raises questions about the agent’s due diligence. “What did the (sellers’) agent do to verify (the square footage)? And what steps did they take? Because I would be quite concerned about professional liability claims on their part.”

At the heart of the case, Bryk says, is the question of what legally constitutes a material misrepresentation, meaning one significant enough that a buyer would not have entered the contract had they had the correct facts.

“It’s impossible to know how the court would quantify that, but I think in a situation of a 3,000-square-foot home being advertised as a 9,000 square feet, there’s a likelihood it would fall into the realm of material misrepresentation,” he said.

A statement from Royal LePage Prime Real Estate provided to Real Estate Magazine said the brokerage “stands firmly behind the agent named.” 

“We are aware of the claim that has been filed and will be addressing the allegations through the legal process,” it said.

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

Courtney Zwicker

Courtney Zwicker is a digital reporter and associate editor for REM. Based in Atlantic Canada, she has over a decade of experience covering daily business news.