What are the different types of warranties?

Deeds of sale usually contain a clause stipulating that "the sale is made with the legal warranty". Sometimes, it will be rather stipulated that "the sale is made without warranty, at the risk and peril of the purchaser". What is thus the legal warranty?

The legal warranty is the warranty that the seller must provide to the purchaser by virtue of the Civil Code of Quebec, unless otherwise agreed between them. It has essentially two components: the warranty of ownership and the warranty of quality.

The warranty of ownership includes the warranty that the property sold is free of any hypothec and any encroachment, subject to the choice of the purchaser to accept these hypothec or encroachment. It also includes the warranty that the property sold does not contravene any law or regulation, unless the seller discloses this breach to the purchaser, or that this breach is obvious, in which case the warranty no longer applies.

The warranty of quality, as for it, is the warranty against the latent defects. Latent defect is a defect not visible which compromises the proper functioning of the property at the time of the sale. It distinguishes itself from the normal wear and tear and must elude a reasonable examination of the property. It is necessary to know, however, that there is no warranty anymore against latent defects when the seller discloses them to the purchaser and that this one purchases the property with full knowledge of the facts.

In all cases, the aggrieved purchaser can institute a legal action in warranty against his seller to obtain a compensation. Thus, the one who resold the property and who is sued by his purchaser retains his legal action against his own seller.

The law allows the parties to agree in the contract of a different warranty, reduced or increased in comparison to the legal warranty, or to agree that the sale is made without warranty, at the risk and peril of the purchaser. It is important that these clauses are express and unequivocal to be valid.