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:
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
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