PROPERTY SOLD WITHOUT LEGAL WARRANTY AND ITS CONSEQUENCES

A seller may not exclude or limit his liability unless he has disclosed the defects to which he was aware or could have been unaware and which affect the right of ownership or the quality of the property.

The exception to this rule is stated in section 1733 paragraph 2 of the Civil Code of Quebec where a buyer buys the property at his own risk from a seller who is not a professional seller.

It is common in estate matters where the liquidator or the heirs wish to sell the property of the deceased that the property is sold without legal warranty as the liquidator and/or the heirs did not reside or live at the property in question and have no knowledge of the state of the property.

A property sold without legal warranty typically has the following wording as follows:

The deed of sale or property is sold without legal warranty at the risk and perils of the buyer.

A buyer who institutes legal proceedings against the seller when the property is sold without legal warranty at the risk and perils of the buyer must prove that the seller conducted dolosive manners and representations that constitute an intentional fault or a gross fault, tantamount to gross recklessness, gross carelessness or gross negligence in accordance with section 1474 C.c.Q[1].

[1] Théberge c. Durette 2007 QCCA 42

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The above noted text should not be construed as providing legal advice or a statement of your claim. The process highlighted above are merely parameters and barometers and do not constitute any warranties and guaranties with regards to your file at hand. We strongly recommend that you seek legal advice with a licensed attorney from the Barreau du Quebec or a notary at the Chambre des Notaires. Each case must be seen and analysed on its merits as the legal process may be complex and cumbersome.