Quebec’s competitive real estate market is pushing more and more buyers into deals without a legal warranty. According to the Quebec Professional Association of Real Estate Brokers (QPAREB), in 2025, 43 percent of all residential transactions in the province — 41,517 out of 97,161 — were completed without legal protection for the buyer. Back in 2011, this figure was only 12 percent.
Historically, transactions without a legal warranty were the exception, typical of the sale of inherited property or bank-repossessed assets. Today, the practice has gone far beyond those limits. According to the president of the Quebec Association of Professional Notaries, Lorena Lopez Gonzalez, over the past five years the number of such transactions has reached an abnormally high level.
“People are willing to take the risk — because they want that very house. There simply isn’t another one.”
— Nathalie Bejin, QPAREB
WHAT A LEGAL WARRANTY IS
A legal warranty protects the buyer from hidden defects — problems that may not be detected even during a thorough inspection. Having such a warranty makes it possible to require the seller to remedy defects, which can save the buyer tens of thousands of dollars. The absence of a warranty, on the other hand, means a complete waiver of the right to make claims against the seller if hidden problems are discovered after closing.
Such situations arise far more often than people tend to think. “You sell a house, and three years later you receive a letter. It’s a pretty scary scenario,” warns QPAREB Director of Brokerage Practice Nathalie Bejin. Hidden defects — from water infiltration to foundation problems — often make themselves known only years after purchase.
RISK WITHOUT COMPENSATION
Of particular concern is that waiving the warranty does not give buyers any meaningful discount on the price. According to Lopez Gonzalez, the absence of a warranty has virtually no effect on the transaction price. In other words, buyers take on serious legal risks without receiving any financial compensation in return. In a normally functioning market, no-warranty deals should come with a noticeable discount. The fact that this is not happening speaks volumes about the level of buyers’ desperation.
On the Island of Montreal alone, in 2025, 5,917 out of 17,366 residential transactions — that is, one in three — were concluded without a legal warranty. Experts expect that as long as the supply shortage persists, this share will only grow.
EXPERT ADVICE
Industry professionals first and foremost recommend insisting on a legal warranty. For those who nevertheless decide to waive it, Lopez Gonzalez advises fully understanding the legal consequences of such a decision, conducting a detailed inspection of the property, and carefully reviewing the seller’s declaration. The key question every buyer should ask themselves is: “What does buying without a legal warranty mean? It means that later I will not be able to make claims against the seller for any problems with the property.”
As long as Quebec’s real estate market continues to dictate terms to sellers, the question of whether the situation will require regulators to intervene to protect consumers remains open.
