Important details about the legal warranty of quality

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January 7, 2020 Real Estate and Construction

In this video (FR), Mtre Bryan-Eric Lane addresses some important details about the legal warranty of quality.

In particular, Mtre Lane points out that a defect is not automatically covered by the legal warranty of quality. Indeed, the defect must specifically result in sufficiently serious loss of use, in addition to having existed at the time of the sale, having been unknown to the buyer and being latent. It is not merely a matter of proving the existence of a defect: it must also be shown that the defect significantly reduces the property’s usefulness in relation to the buyer’s legitimate expectations, taking the age and characteristics of the property sold into account.

A defect that has no impact on the use of the property sold cannot possibly constitute a defect covered by the legal warranty of quality. Thus, a mere case of non-compliance with standard practices or standards such as the National Building Code causing no loss of use for the buyer cannot possibly constitute a latent defect covered by the legal warranty of quality.

In addition, Mtre Lane reminds us that a seller who was completely unaware of the existence of defects will still be liable for latent defects discovered by the buyer under the legal warranty, unless it has been excluded (i.e., the sale was made without a legal warranty of quality).

To find out more about the legal warranty of quality, check out this article dealing with important concepts surrounding the legal warranty of quality.

This bulletin provides general comments on recent developments in the law. It does not constitute and should not viewed as legal advice. No legal action should be taken on the basis of the information contained herein.

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