I am a Winnipeg resident. We made an offer to purchase a…

Generally the law with respect to the purchase of homes is that the purchaser has the right to inspect the home for defects. If the Purchaser decides to buy the home then generally the law can be summed up by the well known phrase "buyer beware." The legal phrase for this is the Latin phrase caveat emptor.

However, at the same time the Vendor is not permitted to misrepresent, fail to disclose or actively try to hide defects.

As well the vendor has a duty to disclose a latent defect if it's substantial. This usually includes defects that render the premises uninhabitable or unfit for the use the Purchaser is planning for. It would also include the situation where the cost to repair is going to be substantial as well.

They did not have an obligation to investigate or remedy the situation but they could not hide this defect from you.

Does that help as a starting point?

They were not required to rectify the water problem.

I explained the law to you and it is clear that they cannot mis-represent the condition of the house to you but if they didn't know about this problem they are not liable.

When you accepted the offer the house became your house in the sense that you became the beneficial owner. They were just the owners on title.

Isn't that what your own lawyer is stating to you?

I am saying that they are not required to make repairs for deficiencies that were there when you bought the house that they did not know about.

If damage occurred to the house after the offer was accepted they would have to make those repairs.