If you are a property buyer, did you know that you could be sued by the seller if you withdraw from the purchase offer through the inspection clause without a valid reason? A recent ruling has confirmed this possibility, making it essential to understand the implications of this clause.

$87,000 in Damages and Interest

Recently, a seller was awarded $87,000 in damages and interest against a buyer who withdrew without sufficient justification. According to the judge, the buyer did not have a valid reason to withdraw from the transaction, leading to this significant judgment.

Understanding the Inspection Clause in Quebec Real Estate

The inspection clause allows the buyer to withdraw from the purchase offer if significant problems are discovered during the inspection. However, it is crucial to note that:

• The problems must be significant: They must have a notable impact on the property’s value or result in considerable expenses.
• A combination of minor issues is not enough: Even if several minor issues add up to a substantial cost, this does not necessarily constitute a valid reason according to the law.

The Implications of This Judgment on Real Estate

With this judgment, it is likely that sellers will increasingly assert their rights. This means buyers must be extremely cautious when drafting their purchase offer and during the property inspection.

Our Advice for Buyers and Their Purchase Offer

• Be well-prepared: Make sure you fully understand the inspection clause and its implications.
• Look for significant reasons: Before withdrawing from the purchase offer, ensure that the identified issues are genuinely significant.
• Consult experts: Do not hesitate to contact us for a detailed explanation and personalized advice. We are here to help you navigate the real estate purchase process safely.

Conclusion

This judgment marks a turning point in how real estate transactions will be managed in Quebec. As a buyer, it is crucial to understand your rights and obligations to avoid costly legal complications. Pay attention when drafting your purchase offer and ensure that your inspection is conducted diligently.

Contact Us

For more information or to discuss your specific situation, feel free to contact us. We are here to support you at every step of your real estate purchase process.