During the sale of a property, one of the sure ways for a seller in good faith to avoid any delayed surprises is to restrict the scope of the warranty, starting from the signing of the purchase offer.
The sale of a property can sometimes bring about surprises that, for some, would undoubtedly be like a time bomb.
For example, 35 years ago, a first seller sold his residence, which was then resold three times. The last sale dates back to 1999. A year later, the residence was substantially destroyed due to a fire caused by a construction defect in the chimney installed by the first seller.
The last buyer, compensated by his insurer, subrogates the insurer in all his rights. Armed with this subrogation, the insurer initiates legal proceedings against the four previous owners and claims over $70,000.
The Court of Appeal* concludes:
- First, the guarantee of quality covers not only one of the accessories (the chimney) which is tainted with a defect, "but also the object of the sale, namely the residence";
- Second, the warranty of a seller in good faith, unaware of the construction defect, is limited to "the use of the sold goods". Thus, the warranty of quality for a seller in good faith does not apply if the loss of use of the sold goods causes other damages or harms goods not covered by the warranty.
- Finally, the court solidarily condemns the previous owners to pay the amount of the claim, and the first seller, the one of 35 years ago, is "responsible for the entirety of the conviction."
When selling a property, one of the sure ways for a seller in good faith to avoid delayed surprises is to restrict the scope of the warranty, starting from the signing of the offer to purchase.
*CA 200-09-005942-070
