A vendor has three obligations to the purchaser of a building:

• he must deliver the property; that is, he must allow the purchaser to take possession of the house;
  
• he must give the purchaser all the titles of ownership in his possession as well as the certificate of location, if one exists;
  
• he must guarantee ownership rights to the house. This means that the house must be free of all mortages, encroachments, etc., unless the purchaser is aware of them and accepts them as conditions of the sale;
  
• he must, according to the law, warrant the quality of the building. This means that the vendor is responsible for any latent defects of the building that exist at the time of the sale.

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:

• water leaking in through either the foundation or the roof;
  
• an infestation of ants, mice, bats, etc.;
  
• a blocked-up chimney;
  
• a defective furnace;
  
• the presence of undesirable materials like urea-formaldehyde foam insulation (UFFI);
  
• a flood that occurs every spring when a nearby waterway overflows;
  
• inadequate ventilation in the attic;
  
  You must also inform your purchaser about any rights that other people can exercise against the house. For example, any servitudes on the house. In general, a servitude is when something is done to one piece of land in order to improve or give a service to another piece of land. Examples include passing electrical wires or gas pipes through or over the land, giving a right-of-way to a third person, etc.

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:

• Ask for forced execution of the warranty of quality – meaning that the seller repairs the latent defect at his expense;
  
• Ask for the resolution (cancellation) of the contract of sale, which means that the building is returned to the seller and the amount paid is recovered;
  
• Instead choose a reduction in the purchase price, which will be established by the court depending on the evidence of the significance of the latent defect.

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:

• moving expenses;
  
• replacement expenses;
  
• hotel expenses while repairs were being carried out;
  
• stress and inconvenience;
  
• the cost of expert evaluations.