Evaluation
You found this Infosheet to be:
![]() |
Owners
When you sell your house, you should not exaggerate its qualities. You have to tell the purchaser about any problems with the property and any repairs that need to be made. Failure to do so may entitle the purchaser to take legal action against you. Also, did you know that you are also responsible to your buyer for any latent (hidden) defects that may affect the home, even if you didn’t know they were there?
In this Infosheet, Éducaloi explains the vendor’s responsibilities concerning latent defects. You will also learn about a purchaser’s obligations and recourses when purchasing a house.
A vendor has three obligations to the purchaser of a building:
A defect, legally speaking, is a defect that renders the property unfit for its intended use or that reduces the value so much that the purchaser would not have paid the asking price. A defect is considered to be latent when it is not apparent and when it cannot be detected by ordinary examination.
Some examples of latent defects (depending on the circumstances), might include: inadequate brickwork that leaks water into the house, a cracked concrete slab, a rotting roof, crumbling foundations, a leaky septic tank.
Yes. The warranty of quality in the Civil Code makes the seller of the building responsible for defects that are “latent”, meaning they are unknown.
The seller is of course also responsible for defects that he knew about but failed to reveal to the buyer. He is also responsible for defects that he should have known about. For example, if you have often noticed droppings around the roof of the house and have seen little brown creatures flying around, you cannot ignore the fact that your roof is home to a bat colony, even if you have never actually climbed up there to see! All the same, as mentioned above, you have no obligation to warranty against defects that you showed or talked to your buyer about, or which are apparent (meaning that the buyer should have been able to tell that the defects were there by making a reasonable inspection of the house).
Yes. As a vendor, you must disclose any defects to the purchaser that make the building unfit for its intended use or that decreases its value. Failure to do this can mean that you are liable to the buyer after the sale.
Some examples are:
As a vendor, you must be in a position to inform the purchaser about anything that could affect the building or that could prevent him from using the property as intended. That’s why you must tell the purchaser about any charges affecting the right of ownership or limiting the use of the dwelling, such as residential and commercial zoning by-laws.
The purchaser is not obliged to have an expert check the condition of the house before the purchase. However, the purchaser must conduct a thorough inspection.
This does not mean that he is obliged to cut through the walls or dig to the foundation, unless he deems it necessary to inspect the property to this extent. Even though the purchaser is not obliged to have the building inspected by an expert, it might be a good idea to do so. Since the purchaser is a layperson, using the services of a professional at this stage will help him to identify signs that defects may exist - and perhaps negotiate a better price. If a problem occurs after the sale, the expert may prove to be a very important and credible witness if the purchaser files a claim for damages caused by the latent defect. An expert who has conducted an inspection is able to confirm that the defect existed before the sale. Moreover, his expertise enables him to provide the court with an estimate of the cost of repairs.
Yes. Courts have said that the purchaser must inform the vendor in writing within a reasonable time following the discovery. The purpose of this written notice is to enable the vendor to undertake the repairs or have the repairs carried out. The vendor can also negotiate with the buyer for reasonable compensation. If the vendor fails to act, the purchaser can institute legal proceedings against the vendor.
Once the latent defect has been explained to the buyer in writing, if the seller does nothing, the buyer has several possible recourses. He can:
If the vendor was aware of the defect, the purchaser may request compensation for damages suffered, in addition to asking for the resolution of the contract or reduction of the purchase price. Damages might include the following amounts:
|