Latent and hidden defects lawyers
Latent and hidden defects
Hamelin & Vrkic, avocats est un cabinet spécialisé en droit du travail et de l’emploi au Québec.
You have purchased a property but you begin to notice that its quality is affected by hidden defects ? Do not hesitate to seek assistance from a real estate lawyer from our firm located in Montreal specializing in hidden defects. Recognized for our expertise in hidden defects claims, we are regularly solicited to assist and represent both residential, commercial or industrial buyers and sellers in cases related to all kind of hidden defects before the common or administrative courts.
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in latent and hidden defects
You have noticed that water is leaking from your foundations or mould is growing on your walls. Yet the seller or its designated representative did not disclose any particular problems when selling your home. You may be in the presence of a hidden defect. In such circumstances, a warranty of quality is legally protecting you against such hidden defects. However, in order to be protected by such warranty, the defects affecting your property must have been hidden.
What are the conditions in order to benefit from the quality warranty ?
First of all, a defect, which is defined as a flaw or problem, is making the property unfit for its intended use or diminishes its usefulness. However, signs of dilapidation of a building, which is the normal process of damaging through use, is not a hidden defect.
The said defect must be serious enough that if the buyer had known about it, he would not have purchased the property or would have bought it at a lower price.
The defect must be unknown by the buyer at the time of the sale. The seller must therefore be able to prove that he had reported the defect to the buyer at the time of the sale.
The defect must not have been apparent at the time of the sale. In order to determine whether or not a defect is apparent, the courts assess whether an ordinary buyer could have noticed such a defect. As a result, it is not necessary for a buyer to seek an expert during the pre-purchase examination of your property, except in certain circumstances, especially when there is evidence of potential defects, but it is certainly recommended by the lawyer at our firm.
Exclusions or additions of warranty or buy at your own risk
The deed of sale of a property may sometimes include a clause that excludes the warranty of quality. Indeed, when you purchase a property at your own risk and peril, you lose the protection against hidden defects. In addition, the words “bought as seen” or “purchased as is” do not amount to a waiver of the said warranty of quality. In contrast, the seller can add to the warranty by guaranteeing all defects, whether hidden or not.
Reporting a hidden defect within a reasonable time
If you discover a hidden defect in property, you must report and denounce it in writing to the seller, and this within a reasonable time of approximately 6 months, unless of special and urgent circumstances. We also advise you to report the latent defect as soon as it is discovered, in order to allow the seller to see for himself the damage and to carry out an inspection of the property, if necessary. In order to guide you in this crucial step, do not hesitate to consult a lawyer from our firm specializing in hidden defects claims.
Rely on an expert
After reporting and denouncing in writing the defect to the seller, you can mandate an expert to define (1) the nature of the latent defects, (2) the damage caused by such defects, (3) the required work to correct the said defects, the cost of such corrective work and, if applicable, (4) the depreciation rate to be applied on the cost of such corrective work.
Getting a bid quote from a contractor
Under certain circumstances, it may be useful to get a quote submitted by a contractor in order to get a cost estimation of the required work. In such circumstances, do not hesitate to consult a lawyer from our firm to determine the relevance behind those quotes.
The formal notice to the seller
If no settlement has been reached with the seller despite being given the opportunity to acknowledge the defect and to fix it, you must hence send a formal notice to the seller demanding (1) to repair the flawed property at his own expense or (2) to bring the appropriate compensation to cover the costs related to any repairs carried out by a contractor. A lawyer of our firm specializing in hidden defect claims can best assist you in such procedures.
Remedies for the buyer
Usually, the buyer directly sues his seller and the latter can sue his own seller, and so on and so forth. However, the buyer will have the option to sue the intermediate sellers directly, as long as the defect existed at the time of the sale.
Regarding the remedies available to the buyer, the annulment of the sale may be requested or a reduction in the selling price, which is generally equivalent to the cost of the required corrective work to repair the defect, while taking into account the loss in the value of the property at the time of its repair.
The buyer can also claim damages if the seller was aware of the hidden defect or in the event that he could not ignore it.
In the event of you finding a hidden defect problem affecting your property, we recommend that you swiftly consult a lawyer at our firm, whether it is to seek advice regarding the reporting of such a defect, the use of an expert or a contractor, or the writing of a formal notice to your seller.