Feb 18, 2016
What does it mean when a property is sold without legal warrenty?
In Quebec, 14,282 residential properties sold through Centris in 2015 were labelled “ without legal warranty at the buyer’s risk” This accounts for 19% of all residential sales.
The main reasons a property is sold without legal warranty are:
an estate sale
Foreclosure - Repossession
Owners who no longer or never lived in the building
Owners who live overseas
Properties with title ownership issues
Properties in damages physical state
Properties that were used for growing marijuana
It is estimated that a single family home sold without legal guarantee ( but that was not a foreclosure) was worth an average of 10% less in the CMA of Montreal, 13% less in Quebec City and 16% less in Gatineau.
For condos it sliced an average of 7% of the sales price in Montreal