August 4, 2026

Sales without legal warranty: an evolving trend

Long associated with specific situations such as estate sales or mortgage repossessions, sales without a legal warranty now play a much more significant role in Quebec's residential real estate market. Over the past fifteen years, their prevalence has increased dramatically.

Market data provides valuable insight into both the scale of this trend and the factors driving its growth. More importantly, it shows that excluding the legal warranty is no longer an exception reserved for a handful of unique circumstances. Instead, it has become closely tied to market conditions, housing affordability challenges, and the demographic changes taking place across Quebec.

A trend that has grown significantly

The evolution has been remarkable. In 2011, only 12% of residential transactions were completed without a legal warranty. By 2026, that figure had climbed to 44%. In other words, nearly one out of every two residential transactions now involves an exclusion of the legal warranty of quality.

This increase accelerated considerably between 2020 and 2022. During a period when market conditions strongly favoured sellers, the proportion of sales without a legal warranty rose rapidly. The pandemic fueled a sharp increase in housing demand, resulting in higher prices, more bidding wars, and substantially shorter selling times. In this highly competitive environment, many buyers became willing to make additional compromises in order to secure a property.

At the same time, many sellers viewed the exclusion of the legal warranty as a way to reduce their exposure to potential future legal claims. After all, a claim for a latent defect may be brought several years after the sale—a prospect many homeowners prefer to avoid when selling their property.

A practice that extends beyond problem properties

One of the most common misconceptions is that a property sold without a legal warranty must necessarily have significant defects or be in poor condition. However, market data suggests otherwise.

Certain situations still justify excluding the legal warranty. Estate sales, mortgage repossessions, or properties whose history is largely unknown to the seller remain common examples. However, these circumstances no longer account for the majority of such transactions.

Today, many sellers choose to exclude the legal warranty simply to limit their future legal liability. These may include older homeowners, individuals who themselves purchased the property without a legal warranty, or sellers who simply wish to move on quickly after completing a transaction. As a result, the decision is not necessarily related to the condition of the property itself.

Price trends further support this conclusion. Properties sold without a legal warranty have experienced substantial appreciation in recent years, gradually narrowing the price gap that once separated them from properties sold with a legal warranty. This suggests that buyers no longer perceive these homes as inherently lower-quality assets.

Housing affordability at the core of the trend

The data indicates that one of the primary drivers behind the growing use of sales without a legal warranty is housing affordability.

For several years, Quebec households have faced significant increases in residential property prices. As homeownership has become increasingly difficult—particularly in major urban centres—buyers have been forced to make trade-offs among the features they value most.

The legal warranty has therefore become just one of many factors influencing purchasing decisions. Buyers often find themselves choosing between retaining certain legal protections and purchasing a property that better fits their budget.

The statistics clearly illustrate this shift. Properties sold without a legal warranty do not remain on the market longer than those sold with a legal warranty. In some market segments, they are even more likely to attract multiple offers. This demonstrates that buyers frequently place greater importance on location, price, and the property's physical characteristics than on whether a legal warranty is included.

This trend is especially evident in more affordable price ranges. The more financially accessible properties are within a given market, the higher the proportion of transactions completed without a legal warranty. Conversely, in higher-priced market segments—where competitive pressure tends to be lower—the legal warranty remains more common.

Significant regional differences

The phenomenon is not uniform across Quebec. Some regions report considerably higher proportions of sales without a legal warranty than others.

Generally speaking, major urban centres such as Montreal, Quebec City, and Gatineau tend to have a higher prevalence of properties sold with a legal warranty. By contrast, many outlying regions record significantly higher rates of transactions completed without one.

Two key factors explain much of this variation.

The first is population aging. Regions with a larger proportion of older residents tend to experience more sales without a legal warranty. For many older homeowners, the prospect of facing a legal claim years after selling their home represents a risk they would rather avoid.

The second factor relates to the housing stock itself. Regions with older homes generally exhibit a higher proportion of sales without a legal warranty. As properties age, uncertainty regarding their condition naturally increases. Some sellers therefore prefer to exclude the legal warranty rather than assume the potential liability associated with defects that may only become apparent after the sale.

Older properties, which have typically changed hands several times, are also more likely to have already been sold without a legal warranty. This creates a ripple effect: once a property has been sold without a legal warranty, subsequent owners are often inclined to maintain that exclusion when reselling the property in order to limit their own legal exposure.

A trend likely to continue

Several factors suggest that the growth of sales without a legal warranty is likely to continue in the coming years.

First, housing affordability challenges remain significant across many Quebec markets. As long as homeownership continues to represent a major financial hurdle for households, many buyers will continue to make compromises in order to purchase a home.

As previously discussed, several structural factors already encourage the use of sales without a legal warranty: an aging population, an aging housing stock, and the cumulative effect of successive resales without a legal warranty. Because these are long-term structural trends, they are expected to continue influencing the market for years to come.

An advisory role more important than ever

The growing prevalence of sales without a legal warranty is also reshaping the role of the real estate broker. In a market where this practice has become increasingly common, brokers play a critical role in guiding both sellers and buyers through the advantages, risks, and trade-offs associated with this decision.

On the seller's side, the broker helps determine whether excluding the legal warranty is appropriate based on the seller's particular circumstances and objectives. On the buyer's side, the broker ensures that the implications of such an exclusion are fully understood so that an informed decision can be made.

In this context, home inspection reports have become more important than ever. Although they do not replace the legal warranty, they provide an essential means of documenting the property's condition and reducing uncertainty surrounding the transaction. By recommending appropriate inspections—and, where necessary, more specialized evaluations—the broker helps build confidence between the parties and supports informed decision-making based on the best available information.

As the legal warranty increasingly becomes a negotiable element influenced by market conditions, the broker's expertise and advisory role become even more valuable.

A market adapting to new realities

The rise in sales without a legal warranty reflects the way market participants are adapting to a changing economic and demographic environment. Buyers continue to face persistent affordability challenges, while sellers are increasingly seeking to limit the legal risks associated with a transaction.

This evolution does not mean that the legal warranty has lost its importance. Rather, it illustrates how the trade-offs made in today's real estate market have changed. For both buyers and sellers, understanding the implications of excluding the legal warranty remains essential. More than ever, decisions should be based on complete information and a careful assessment of the risks associated with each transaction.

Making informed decisions

The growing prevalence of sales without a legal warranty reflects the evolution of Quebec's residential real estate market rather than a decline in property quality. In this context, understanding the implications of this choice is essential for both buyers and sellers.

More than ever, the guidance of a real estate broker can make all the difference. Through their expertise and professional advice, brokers help clients properly assess risks, make informed decisions, and complete their transactions with confidence.