”It’s important you explore every available avenue when it comes to buying or selling a property. One option is selling without a legal warranty. Read on to find out what a legal warranty is, the risks if it’s excluded from a transaction, and the possible remedies for hidden defects.”
”What is a legal warranty?
The Civil Code of Québec provides that the sale of property made with a legal warranty protects the buyer from hidden defects, except those the seller has reported. Nevertheless, some properties may be sold without a legal warranty. In this case, the promise to purchase and the deed of sale will include the following: “This sale is made without legal warranty, at the buyer’s own risk.”
The legal warranty has two components that exist by the sole operation of law.
The seller guarantees that the property is free from all defects at the time of sale, with the exception of what is reported in the Declarations by the seller form and those discovered during the pre-purchase inspection.
2. Warranty of Ownership
This component relates to defects in titles that could deprive the buyer of their right of ownership, ensuring that:
Can you sell a house without a legal warranty?
The legal guarantee may be excluded in whole or in part from a real estate transaction. This is sometimes the case for an estate sale, property owned by an elderly person wanting to protect their assets, and property subject to foreclosure or that will be demolished.
Partial exclusions may apply to construction components, mechanical devices or appliances.
Buying a home without a legal warranty means that you acquire it in the condition it’s in, waiving any recourse against the seller. If you’re dissatisfied, you’ll have to show that the seller deliberately concealed something important enough to prevent the sale or lower the price.
What are the possible remedies if there’s a hidden defect?
The legal warranty allows for recourse against a seller within three years of discovering a hidden defect. The buyer must then send a formal notice to the former owner informing them of the situation and requesting compensation within three to six months.
The buyer can then:
Every transaction involves some risk, so surround yourself with experienced real estate professionals for a safe transaction.”
Source: To read the original article published on Centris.ca click HERE
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