The vendor and the purchaser of an immovable are held to certain mutual obligations. The purchaser must take possession of the property and pay the sale’s price. The vendor must deliver the property and is bound by the legal warranty; in other words, the law obliges the vendor to guarantee certain things to the purchaser.

First, the vendor is bound by the warranty of ownership, and is obliged to guarantee (to the purchaser) that the immovable has no title defects and is free of all charges, except those declared at the time of sale. The vendor must also guarantee that the immovable is not encumbered by any encroachment (an encroachment attributable to the vendor or attributable to the sale by a third party, with prior knowledge) and, within the confines of the law, does not contravene public law restrictions (for example, the vendor guarantees that the immovable complies with zoning regulations). The warranty of compliance with public law restrictions is, however, not absolute: the purchaser must remain vigilant.

Second, the vendor is bound by the warranty of quality, that is, the warranty against hidden defects. But be careful! The warranty of quality covers only major defects that existed at the time of the sale, that were unknown to the purchaser, and that a prudent and diligent purchaser would not have discovered. Easy you say? To the extent permitted by law, the parties may add to or reduce the legal warranty. The notary is well-equipped to inform you on the subject and will include in the deed of sale a clause that extends or limits liability to reflect the wishes of the parties, while complying with the law.

Source: Chambre des notaires du Québec