Buying a House Without a Legal Warranty: What You Should Know

When browsing the real estate market, you’ll often come across listings marked “as-is.” In most cases, this means the home is being sold without a legal warranty. At first glance, this can sound like a warning sign for hidden problems, but that’s not always the case.

Buying without a legal warranty raises plenty of questions. What does “at the buyer’s own risk” really mean? What protections are you giving up? Could the seller still be responsible for hidden issues?

The truth is, buying a property without a legal warranty can be a smart move—if you’re well informed and prepared to handle the risks. Let’s break down what this means, the pros and cons, and the precautions every buyer should take.

What Is the Legal Warranty on a Home?

By default, every property sold in Quebec comes with a legal warranty. It protects buyers in two key ways:

1. Warranty of Quality

This ensures the property is free from hidden defects that make it unfit for its intended use or that significantly reduce its value. To qualify as a hidden defect, four conditions must be met:

• The defect isn’t obvious during a visual inspection.

• The buyer wasn’t told about it before the sale.

• It existed at the time of purchase.

• It has a serious impact on the property’s use or value.

It’s important to remember that normal wear and tear, age, or a lack of modern standards don’t count as hidden defects.

Tip: Always read the seller’s declarations and have a pre-purchase inspection. The warranty doesn’t cover anything that was already disclosed or obvious.

2. Warranty of Ownership

This ensures you receive a clear title to the property, protecting you from claims that could limit your rights as the owner.

How Can a Seller Exclude the Legal Warranty?

To remove these protections, a specific clause must be added to the listing and sales documents. You’ll see wording like:
“This sale is made without legal warranty of quality, at the buyer’s own risk.”

The seller may exclude the warranty fully or partially—for example, only applying the exclusion to certain elements such as a pool, heating system, or appliances.

Important: Professional sellers, like builders or developers, cannot exclude legal warranties.

Why Do Sellers Choose to Exclude the Warranty?

Here are some common reasons:

• Estate sales – Heirs may not know the property’s history.

• Foreclosures – Banks or liquidators want to limit liability.

• Older homes needing renovations – Buyers are expected to fix issues themselves.

• Multi-unit buildings – Owners may want to limit claims on complex properties.

• Change of use – If a property will be converted (ex. residential to commercial), the seller can’t guarantee future compliance.

Risks and Benefits for Buyers

Risks

• You take on full responsibility for hidden defects.

• Reselling later may be harder.

• Legal remedies are limited, unless you can prove the seller acted in bad faith.

Benefits

• Prices are often lower, sometimes by 8%–11%.

• Less competition from other buyers, giving you more negotiating power.

The Transmission of Legal Warranty

If you buy a home without a legal warranty, that exclusion stays in the chain of ownership. Even if you later sell with a warranty, it will only apply to your period of ownership—not the seller before you.

Court decisions in Quebec confirm that once a sale includes a waiver, future buyers can’t go back and claim protection against previous owners.

Precautions Before Buying Without a Legal Warranty

• Get a thorough pre-purchase inspection.

• Review the seller’s declarations closely.

• Budget realistically for potential repairs.

• Ask for clarifications on anything unclear, and keep written records.

Tip: A pre-purchase inspection is visual only. It doesn’t guarantee the absence of hidden defects, but it can reveal red flags. Take these seriously.

The Role of a Real Estate Broker

A broker plays a key role in these transactions. They must:

• Clearly explain what “without legal warranty” means.

• Review important documents such as the certificate of location and zoning bylaws.

• Point out risks and alternatives, like partial warranty clauses.

• Recommend other professionals, such as a real estate lawyer, when needed.

In Quebec, brokers are legally required to disclose all material facts to protect both buyers and sellers.

Remedies in Case of Hidden Defects

If you buy without a legal warranty, your options are very limited. You generally can’t take action against the seller—unless you can prove fraud or deliberate concealment.

For a problem to qualify as a hidden defect, it must be serious, hidden, present at the time of sale, and unknown to the buyer.

A Growing Trend

Sales without legal warranty are on the rise in Quebec. Between 2014 and 2021, the percentage of transactions with this clause nearly doubled.

This trend accelerated during the pandemic, when many buyers were willing to take on more risk to secure a property.

Final Thoughts

Buying a home without a legal warranty isn’t necessarily a bad idea—it can even be an opportunity for savvy buyers. The key is to understand exactly what you’re agreeing to, weigh the risks, and surround yourself with the right professionals.

With the guidance of a qualified broker, a careful inspection, and realistic budgeting, buying “as-is” could be a smart move.