You’re in the market for a new home, but the current real estate market is certainly not easy for buyers. Finally, you find the house of your dreams, but there’s a little catch: the seller insists on selling without a legal warranty, at your own risk… Stay tuned as we take a look at what the legal warranty consists of and what the consequences of waiving it might be…

The legal warranty gives buyers of a property recourse against the seller, whether it is a single-family home, a condo, a multiplex or other. The recourse in question concerns, among other things, the discovery of defects that were hidden at the time of the sale and that were not discovered during the pre-purchase inspection. Let’s not forget that the objective of a pre-purchase inspection is to identify apparent defects and indications of hidden defects. One only has to think of the presence of mould inside a wall, for example.

We never want to, but if, as a buyer, you are confronted with such a situation, you can invoke the legal guarantee to demand that the seller repair the problem at his expense. In the worst case, you could even have the sale cancelled.

But of course, all these protections are lost if you risk buying a house without a legal warranty…

The legal warranty is automatic in a real estate transaction. However, the seller can decide to exclude it from the transaction. To do so, he must include the following statement in the promise to purchase and the deed of sale: “the sale is made without a legal warranty, at the buyer’s risk”. With this mention it will be impossible for you as a buyer to sue the seller for any problem. In fact, the only recourse you will have is to prove that the seller deliberately hid the truth about an aspect of the sale that was so important to you that you would not have bought the house if you had known about it. In any case, certainly not at the same price. But you still have to be able to prove the seller’s intent, which is not easy to do.

Waiving the legal warranty and agreeing to buy a house without a legal warranty may therefore seem like a good idea when you are in the heat of the moment, with your head full of plans for your future home. But with a little hindsight, the project is much less attractive.

If the real estate market and the economic situation force you to make an offer on a house for sale without a legal guarantee, make sure at the very least that you don’t forgo the pre-purchase inspection stage. A good inspection will allow you to know the real condition of the property you are interested in. To be on the safe side, tell the inspector that the property to be inspected is sold without a legal warranty.

If you have any questions regarding hidden defects or if you are planning to buy a new home, do not hesitate to contact us. We have a complete team of home inspectors and technical/legal experts who will be able to help you whatever your needs may be!