Everything you need to know about hidden defects in a house!

Buying a house is a significant investment. It's no wonder that hidden defects are one of the worst fears of buyers. Is it possible to protect yourself against this inconvenience, particularly through home insurance? And what to do if, despite precautions, you discover a hidden defect? After reading the following, you can search for your dream home with a more peaceful mind!

What exactly is a hidden defect?

A defect is a significant flaw that diminishes the quality of a purchased property. In order for it to be hidden, it must meet certain criteria provided for in the Civil Code of Québec:

  • To be unknown to the buyer;
  • To be serious enough to influence the purchase decision or the sale price (if you had known about the defect, you would have offered a lower price or perhaps completely given up on buying the house);
  • To exist at the time of purchase;
  • To be not apparent, that is, a simple examination by a prudent and diligent buyer could not have revealed it.

If the defect meets these criteria, the buyer is protected by the legal warranty of quality against hidden defects under the Civil Code of Québec, and the seller may be held liable for the hidden defect, even if they were unaware of its existence at the time of sale.

To inspect the property

The necessary precautions

Do you want to reduce the risks of buying a house with a hidden defect or, at the very least, be prepared for any eventuality? You're quite right, caution is essential. A prudent buyer must, in particular:

1- Verify if the sale is without legal warranty

Various contexts may lead sellers to want to exclude the legal warranty of quality against hidden defects. Estate sales are a good example. But what does it mean to buy 'at your own risk'? It means you are buying a property as seen and with its defects. By adding this mention to the sales contract, your protection against hidden defects is excluded

2- Have the property inspected

Inspecting a property before purchase demonstrates that you are a prudent and diligent buyer. Even if it is not mandatory, a pre-purchase inspection will allow you to detect apparent defects. A careful examination could also lead to the discovery of more serious defects. Some buyers will opt for a building expert.

3- Have legal insurance

Having legal insurance is being prepared. This protection is often offered at very little cost, right within your home insurance policy. Financial aid can allow you to cover, up to a certain amount, the costs you must incur to defend your rights or represent yourself in court. Legal insurance is useful not only in the context of a hidden defect, but also to resolve various everyday conflicts.

This is a proactive solution that offers access to financial assistance to cover, under certain conditions, your defense or court representation costs in the event of a hidden defect.

Buying a house with hidden defects

How to proceed in case of a hidden defect?

If, despite everything, you discover a hidden defect in your new home, what should you do? It is important to proceed in the right way and in the right order.

1- Consult a legal professional

Consulting a lawyer or a notary will allow you to better understand your rights and remedies in case of discovering a hidden defect.

2- Notify the seller in writing

The discovery of the hidden defect must be reported in writing to the seller within a reasonable time. After bringing the defect to the seller's attention, they must be given time and opportunity to assess the situation and react to it. In doing so, if work is to be undertaken, other than urgent work, you may have to bear the costs if you begin it before the seller has been notified.

3- Try to reach an amicable agreement

Dialogue, negotiation, mediation, conciliation: all means are good to try to find common ground with the former owner. If it's conclusive, you'll avoid the courts. Mediation and conciliation are methods of amicable agreement. A demand letter is a procedural vehicle prior to legal action.

4- Take legal action

Sometimes, the only remaining solution is to pursue legal action. This is the case if negotiation has failed or if the seller has not even responded to your written notice. Prior to pursuing your recourse, a demand letter must be sent. This may or may not resolve the dispute.

Now that you are well informed about the potential hidden defects that we hope you never find, you can focus on the positive: finding the house where you will live a multitude of happy moments!

Ready to get started? Contact a real estate broker now. They will be able to assist you in realizing all your projects!

*This text does not constitute legal advice.