5 things to know about latent defect

  1. What is a latent defect?
  • Questions to ask yourself:
    1. Did the defect exist at the time of the purchase?
    2. Is the defect hidden?
    3. Did the defect render the immovable property unfit for its intended use?
    4. Did the buyer denounce the defect to the seller?
    5. Is the defect important and serious?
  1. Before you buy:
  • What is a pre-purchase inspection? It is essential that the buyer conducts a thorough pre-purchase inspection of the property and investigates any apparent signs of potential defects.
  • Despite all the information contained in the Seller’s declaration, which the seller must provide, it is important to get a pre-purchase inspection as it will supplement the information acquired and present a more thorough evaluation.
  • Furthermore, it reflects the prudence and diligence of the buyer.
  • For more information, please visit : https://schneiderlegal.com/obligations-of-the-buyer/
  • I do not need an inspection because my property is new:
  1. Think again! It is never recommended to waive a pre-purchase inspection of the property.
  2. An inspection can uncover important factors that will have an impact on the price you will offer the seller.
  • Property sold without a legal warranty: if you buy a property without legal warranty, there are consequences as chances are likely you will not have be successful in a lawsuit against the previous owner for latent defects, unless you can prove fraud or gross negligence.
  1. After the inspection:
  • No change: you declare yourself satisfied with the inspection and the transaction proceeds normally.
  • Renegotiations of the price or conditions for purchase: if significant issues have been uncovered, you may want to:
  1. Ask for a reduction in the purchase price;
  2. Have a more in-depth inspection done of a specific component of the property or have further testing done. Example: pyrite;
  3. Give the seller a period of time in which to carry out repairs.
  • If new negotiations take place, the seller will have the option to:
  1. Agree to a price reduction or to carry out the repairs himself;
  2. Agree to extend the deadline to give the prospective buyer time to have more in-depth testing done;
  3. Pursue negotiations; or
  4. Reject your demands.
  • Cancellation of the sale: if, after reading the inspection report and noting in good faith the presence of significant factors that affect the value of the property, where you no longer wish to purchase the property, you must, in accordance with generally used inspection clauses, and within the deadline specified, send a notice to cancel the purchase of the property to the seller, accompanied by a copy of the inspection report.
  1. Recourse against the inspector:
  • The inspector has the obligation of prudence and diligence and reasonabless comparing it to a diligent and prudent inspector placed in the same circumstances rather than an obligation of result.
  • If he fails in his obligations, a prejudiced party reserves all rights and recourse against the inspector.
  • For more information on recourse against the inspector, please visit: https://schneiderlegal.com/recourse-against-the-inspector/
  1. Recourse against the real estate broker:
  • The real estate broker has the obligation of prudence and diligence and reasonabless comparing it to a diligent and prudent real estate broker placed in the same circumstances rather than an obligation of result.
  • If the real estate broker fails in his duties and obligations, a prejudiced party reserves all rights and recourse against the real estate agent at fault.
  • For more information, please visit: https://schneiderlegal.com/recourse-against-the-real-estate-broker/

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If you are looking for a law firm with reasonable rates, quick and efficient turnaround time for your files and who provides personalized and effective follow-ups, call Schneider Attorneys at (514) 439-1322 ext. 112 or email us at info@schneideravocat.com

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.