The Principles Governing the Reduction of the Sale Price for Latent Defects


July 13, 2016 Real Estate and Construction

This post, published on Éditions Yvon Blais’ blog on latent defects on July 13, 2016 (FR), discusses the principles governing the reduction of the sale price for latent defects, in light of the Court of Appeal’s judgments in Verville (Full Text | Fiche Quantum) and Lahaie (Full Text | Fiche Quantum). 

Specifically, the sale price’s reduction must be reasonable in the circumstances and must not have the effect of unduly enriching the buyer to the seller’s detriment, while the buyer will retain the property's ownership.

It is also important to consider all of the circumstances and propose a reduction of the sale price that is reasonable in the circumstances, rather than simply adding up the costs incurred and/or projected for correcting the defects.

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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