Source: http://lanelegal.com/en/all-our-publications
Timestamp: 2019-04-24 16:27:09+00:00

Document:
All our publications | LANE, Lawyers and Business Advisors Inc.
Investing in residential real estate in order to rent through Airbnb? Proceed with caution!
If you purchase a used residential immovable (for example, a condo), which is not taxable, in order to rent through Airbnb, meaning solely short-term rentals (for periods of less than 60 days), you may have a very bad surprise upon reselling your immovable.
Real estate flips: watch out for flops! Particularly when you have done major renovations before reselling.
This post, published on Éditions Yvon Blais’ blog on latent defects on August 2, 2018, discusses the judgment in Compagnie d’assurances ING du Canada v. Gervais (Full Text | Fiche Quantum), in which the Court of Quebec reiterated the rule that a subsequent buyer has a direct recourse against a previous seller of an immovable.
What do you do if you receive a claim for latent defects?
Have you sold an immovable a few years ago and your buyer just notified you of a problem that he considers a latent defect? This article outlines the steps to follow upon receiving a claim for latent defects from one’s buyer.
This post, published on Éditions Yvon Blais’ blog on latent defects on June 5, 2018, discusses the judgment in Tremblay v. Internoscia (Full Text | Fiche Quantum), rendered by the Superior Court in 2017, in which the buyers who had sued their sellers for latent defects were ordered to pay them more than $100,000.00 for the legal fees they had to incur as a result of the recourse that the court found to be abusive.
This post, published on Éditions Yvon Blais’ blog on latent defects on May 24, 2018, discusses the judgment in Société en commandite de l’Avenir v. Familia Saint-Jérôme (Full Text | Fiche Quantum), in which, in 2017, the Court analyzed a claim for a reduction of an immovable’s sale price due to the soil’s contamination with oil on the basis of various guarantees, namely (i) the legal warranty of quality of section 1726 C.C.Q., (ii) the warranty against violations of public law restrictions of section 1725 C.C.Q., as well as (iii) the seller’s contractual warranty, his specific declaration to the buyer, at the time of the sale, that the immovable in question did not violate any environmental protection laws.
This post, published on Éditions Yvon Blais’ blog on latent defects on April 13, 2018, discusses the judgment in Kadoch v. Construction Emmar inc. (Full Text | Fiche Quantum), which reminds us that the second paragraph of section 1739 C.C.Q. does not stipulate that the seller’s real or presumed awareness of a defect deprives him of the right to be notified of the defect by the buyer in writing.
This post, published on Éditions Yvon Blais’ blog on latent defects on April 17, 2018, discusses the judgment in Wilhelm Ahlfors v. Crevier (Full Text | Fiche Quantum), in which the Superior Court reiterated, in 2016, that an apparent defect can become a latent defect when the seller makes specific representations as to the absence of any defects, even when these representations are made in good faith.
This article, which was published in Les Affaires on March 24, 2018, outlines some important rules in matters of latent defects.
This post, published on Éditions Yvon Blais’ blog on latent defects on January 19, 2018, discusses the judgement in Giagnotti v. Anania (Full text | Fiche Quantum), in which the Court of Appeal reminds us that recommendations made by a pre-purchase inspector to carry out certain maintenance work or repair work once the sale is completed constitute “post-purchase” recommendations that do not require any further inspection before the purchase. Therefore, in principle, such post-purchase work recommendations cannot be considered recommendations that should lead buyers to consult an expert before the sale in order to inspect further.
What do you do if you discover latent defects?
You just acquired a new property that you intend to renovate over the upcoming weeks. You begin the work by dismantling the basement walls and notice mold, rotten materials, and water infiltration. You think these constitute latent defects. What do you do?
This post, published on Éditions Yvon Blais’ blog on latent defects on February 20, 2018, discusses the judgement in Mainguy v. Courchesne (Full Text | Fiche Quantum) where the seller who was sued by his buyer for latent defects called his real estate broker in warranty, contending that his real estate broker had committed a contractual fault by poorly advising him when completing the seller’s declaration, failing to correct this declaration when he found that there was no question as to the state of the retaining wall, and not having informed the buyers of the retaining wall’s problem, as he had undertaken to do.
This post, published on Éditions Yvon Blais’ blog on latent defects on January 15, 2018, cites the judgement in Labrie v. Vanasse (Full Text | Fiche Quantum) and the decision of the Superior Court in Robichaud v. Lemay (Full Text | Fiche Quantum), which deal with the warranty of delivery. Specifically, the warranty of delivery can sometimes be an interesting avenue when a seller has made specific representations to his buyer as to the specific characteristics of a property and said property ultimately is not in accordance with what had been agreed upon/represented by the seller.
This post, published on Éditions Yvon Blais’ blog on latent defects on January 9, 2018, discusses the judgement in the leading case Lavoie v. Comtois (Full Text | Fiche Quantum), which addresses the concept of a prudent and diligent buyer. Essentially, a prudent and diligent buyer must conduct a thorough and attentive visual examination of the building and must remain alert as to any clues that could suggest the presence of a defect. If a serious doubt forms in his mind, he must investigate further.
This post, published on Éditions Yvon Blais’ blog on latent defects on November 17, 2017, discusses the judgment in Abran v. Tourville (Full Text | Fiche Quantum), in which the Superior Court, in a recourse for damages for fraud, found the responsibility to be shared between the seller and the buyer.
This post, published on Éditions Yvon Blais’ blog on latent defects on November 6, 2017 (FR), discusses the judgment in SG2C inc. v. Morin (Full text | Fiche Quantum), in which the Superior Court determined whether or not the buyer’s failure to notify the seller of a defect before beginning the corrective work should be sanctioned by the complete dismissal of the recourse.
This post, published on Éditions Yvon Blais’ blog on latent defects on October 31, 2017 (FR), discusses the judgment in Villa Royale inc. v. Roy, (Full text), in which the Superior Court reiterated that a corporation’s shares may not be the subject of a recourse for latent defects in virtue of the legal warranty of quality.
This post, published on Éditions Yvon Blais’ blog on latent defects on October 2, 2017 (FR), discusses the importance for a buyer of an immovable, who makes a claim for latent defects against the seller, to distinguish between the cost of corrective work, which can be claimed, and improvements, which cannot, as well as the consequences for the buyer who blindly claims sums relating to both corrective work and improvements, between which the supporting documents provided by the buyer in support of his claim make no distinction.
This post, published on Éditions Yvon Blais’ blog on latent defects on September 20, 2017 (FR), deals with the self-builder’s liability for latent defects. Specifically, an individual who undertakes a self-build or major building renovation project for which he acts as the general contractor or carries out the work himself will not be considered a simple seller when he sells his immovable; he will be presumed to know of all the defects affecting the sold property and will not be able to exonerate himself by invoking his ignorance of the defects, regardless of his level of expertise, experience, and competence and regardless of whether or not he knew of the defects.
This post, published on Éditions Yvon Blais’ blog on latent defects on September 12, 2017 (FR), discusses the judgment in Leduc v. Vachon (Full Text), rendered in September 2016, in which the Superior Court ruled on the application of section 178(1)(e) of the Bankruptcy and Insolvency Act with regards to two sellers who went bankrupt and against whom the buyers obtained a judgment in March 2006 in the context of a recourse for latent defects. In this case, the court refused to release the sellers of their obligations under the judgment from 2006 despite the fact that they were discharged from their bankruptcy, given that they deliberately concealed that a flood occurred in the building a few days before the sale.
The Impact of a Sale Without Legal Warranty on a Recourse Brought Against a Previous Seller Pursuant to Section 1442 C.C.Q.
This post, published in Éditions Yvon Blais’ blog on latent defects on June 29, 2017 (FR), discusses the judgment in ING du Canada v. Gervais (Full Text | Fiche Quantum), in which the Court of Quebec reminds us of the state of the law in cases of direct recourses against a previous seller who is not the last seller in the chain of title.
This post, published on Éditions Yvon Blais’ blog on latent defects on June 19, 2017 (FR), discusses the judgment in Mazzella v. Retsinas (Full Text | Fiche Quantum), which reminds us that a claim for latent defects is a personal right that persists despite the sale of an immovable during the proceedings.
This post, published on Éditions Yvon Blais’ blog on latent defects on June 7, 2017 (FR), discusses the judgment in Théberge v. Durette (Full Text) in which the Court of Appeal emphasizes that the error caused by the seller’s fraud must have been determinant and the buyer must have exercised due diligence in the circumstances.
This post, published on Éditions Yvon Blais’ blog on latent defects on May 30, 2017 (FR), discusses the judgment in Matteau v. Vigneault (Full Text | Fiche Quantum), which reminds us that fraud requires very precise proof.
This post, published on Éditions Yvon Blais’ blog on latent defects on May 15, 2017 (FR), discusses the judgment in Gingras v. Millaire (Full Text | Fiche Quantum) and the importance for a buyer in a recourse for latent defects to prove a deficit of use.
Why not try a settlement conference?
A settlement conference is a process undertaken for the amicable settlement of disputes for which legal proceedings have been instituted and in respect of which the parties involved wish to reach a consensus to put an end to the legal debate sooner than is possible with the current judicial system.
This post, published on Éditions Yvon Blais’ blog on latent defects on May 10, 2017 (FR), discusses the judgment in Desmeules v. 1845-0460 Québec inc. (Full Text | Fiche Quantum) in which the court reminds us that a buyer who fails to follow his expert’s recommendations made before the sale related to the signs or problems detected by said expert during his inspection is fatal to the buyer’s recourse for latent defects.
The Destruction of an Immovable with a Latent Defect Does Not Exempt the Buyer from Notifying the Seller in Accordance with Section 1739 C.C.Q.
This post, published on Éditions Yvon Blais’ blog on latent defects on May 1st, 2017 (FR), discusses the judgment in Optimum, société d’assurances inc. v. Trudel (Full Text | Fiche Quantum) and studies the scope of the obligation to give notice provided for in section 1739 C.C.Q. and, specifically, the buyer’s obligation to give the seller a written notice despite the fact that the immovable with the latent defect was destroyed by fire.
This post, published on Éditions Yvons Blais’ blog on latent defects on April 24, 2017 (FR), discusses the judgment in Immeubles Jacques Robitaille inc. v. Province canadienne des religieux de Saint-Vincent-de-Paul (Full Text | Fiche Quantum), in which the Superior Court reminds us that the presence of a defect affecting an immovable intended to be demolished is, in principle, not covered by the legal warranty of quality, as the immovable’s use is in no way compromised by the presence of the defect.
A Non-professional Seller who Sells a Property Without Legal Warranty at the Buyer’s Risk and Peril Need Not Disclose the Defects of Which He Was Aware Pursuant to Section 1733 C.C.Q.
This post, published on Éditions Yvon Blais’ blog on latent defects on March 10, 2017 (FR), discusses the recent judgment in Labrecque v. Petit (Full Text | Fiche Quantum) in which the Superior Court reminds us that a non-professional seller who sells a property without legal warranty, at the buyer’s risk and peril, need not disclose the defects of which he was aware pursuant to section 1733 of the Civil Code of Quebec (C.C.Q.). Specifically, the Court reminds us that a seller may exclude his liability under the legal warranty of quality and that, in such a case, he is not required to disclose the defects of which he was aware or could not have been unaware to the buyer.
This post, published on Éditions Yvon Blais’ blog on latent defects on March 2, 2017 (FR), discusses the recent judgment in Gingras v. Duplessis (Full Text | Fiche Quantum), in which the sellers of an immovable were ordered to pay the buyers $28,441.17 due to a crack in the foundation.
This post, published on Éditions Yvon Blais' blog on latent defects on February 25, 2017 (FR), discusses the recent Superior Court judgment in Sévigné v. Prud'homme (Full Text | Fiche Quantum), in which the court granted a motion to dismiss presented by the defendants in warranty and the defendants in sub-warranty.
This post, published on Éditions Yvon Blais’ blog on latent defects on February 17, 2017 (FR), deals with a fundamental concept in matters of latent defects: the applicable standard of conduct for a buyer, namely that of acting as a prudent and diligent buyer.
The Seller’s Failure to Notify the Buyer of a Death by Overdose in a Building: Fraud?
This post, published on Éditions Yvon Blais’ blog on latent defects on Feburary 10, 2017 (FR), which discusses the judgment in Girard v. Dufour (Full Text | Fiche Quantum), explains that a seller’s failure to notify the buyers that an overdose death occurred in the building does not constitute something that can objectively affect the value of a property, but rather something that can subjectively affect the value of a property, which the seller is not obliged to disclose.
What is the legal warranty of quality? What is a latent defect? While they may appear simple, the rules on latent defects are numerous and sometimes complex. Every case is different, and an analysis is always required in order to confirm whether we are in the presence of defects covered by the legal warranty of quality. In fact, and contrary to popular belief, a defect is not automatically defect covered by the legal warranty of quality.
Does the Occurrence of a Suicide in a Building Before its Sale Constitute a Latent Defect Covered by the Legal Warranty of Quality?
This post, published on Éditions Yvon Blais’ blog on latent defects on January 17, 2017 (FR), which discusses the judgment in Fortin v. Mercier (Full Text | Fiche Quantum), reminds us that within the meaning of section 1726 of the Civil Code of Quebec, a suicide does not constitute a latent defect covered by the legal warranty of quality. However, a suicide, as the court reminded us in this case, constitutes an element that is likely to influence a real estate transaction and a seller must disclose such an event to the buyer in order for the latter’s consent to be free and enlightened.
This post, published on Éditions Yvon Blais’ blog on latent defects on January 4, 2017 (FR), which discusses the judgment in Paiement v. Archambault (Full Text | Fiche Quantum), answers an interesting question regarding the reduction of the sale price: when it comes time to evaluate the reasonableness of the reduction of the sale price claimed by the buyers, must we also consider the additional amounts that can be granted as reimbursement of expert fees, interest, and the additional indemnity?
In this video, Mtre Bryan Éric Lane provides a general explanation on real estate title insurance. Specifically, this video outlines the ins and outs of this insurance product, and, in particular, the risks/situations that are generally covered by a real estate title insurance policy.
Is a Seller, Who Sold an Immovable in 1985, Went Bankrupt in 1987, and Was Then Discharged from Bankruptcy in 1988, Liable for Latent Defects First Discovered in the Immovable in 1998?
This post, published on Éditions Yvon Blais’ blog on latent defects on November 17, 2016 (FR), which discusses the judgment in Axa Assurance inc. v. Immeuble Saratoga inc. (Full Text | Fiche Quantum), reminds us that a seller’s bankruptcy and subsequent discharge do not have the effect of extinguishing the legal warranty of quality against latent defects resulting from an act of sale concluded before the seller’s bankruptcy for latent defects discovered by a buyer after the seller’s discharge.
This post, published on Éditions Yvon Blais’ blog on latent defects on November 14, 2016 (FR), discusses the judgment in Martin v. Brière (Full Text | Fiche Quantum), in which the Superior Court, in a judgment from the Honourable Gary D.D. Morrison, reminded us that the court must not consider the effect of depreciation when the buyer requests the resolution of the sale.
This post, published on Éditions Yvon Blais’ blog on latent defects on November 10, 2016 (FR), reminds us that a court may, in the absence of expert evidence as to the applicable depreciation, decide to apply the depreciation that it deems appropriate. The judgment in Deslauriers v. Desmangles (Full Text | Fiche Quantum) reminds us that the court has the power to impose the depreciation it deems applicable, even in the absence of expert evidence to this effect.
This post, published on Éditions Yvon Blais’ blog on latent defects on August 8, 2016 (FR), reminds us that the prescriptive period only begins when the buyer has sufficient information to proceed with the notification and not as of the discovery of the first signs if said signs only lead to mere hypotheses.
This article outlines several basic key concepts of construction hypothecs.
This post, published on Éditions Yvon Blais’ blog on latent defects on October 4, 2016 (FR), reminds us that a pre-purchase inspector’s abstract or general warning does not, in principle, constitute a positive indication of a defect if the inspector does not detect any particular indications or signs that could indicate the potential existence of a defect related to the subject of the recommended inspection.
This post, published on Éditions Yvon Blais’ blog on latent defects on September 12, 2016 (FR), reminds us to be wary of automatic reflexes in cases of a seller’s misrepresentations. Specifically, a seller’s misrepresentations do not automatically transform an apparent defect into a legally latent defect within the meaning of the Law.
What Is the Purpose of a Shareholders’ Agreement?
This column outlines the purpose of a shareholders’ agreement for a corporation’s shareholders. Specifically, this column highlights some very common and practical situations in which a shareholders’ agreement proves very useful.
This post, published on Éditions Yvon Blais’ blog on latent defects on August 24, 2016 (FR), reminds us that a claim filed with the administrator of a warranty plan and the subsequent request for arbitration do not have the effect of releasing a contractor (who is a seller) from the obligations incumbent upon him under the legal warranty of quality, such that the Superior Court retains competence over a recourse for latent defects, and specifically, retains its jurisdiction to order the requested cancellation of the sale, if necessary.
What Is Real Estate Title Insurance?
This bulletin provides an outline of the key features of an insurance product with which, in our opinion, every real estate professional must be familiar. In particular, title insurance helps to close many real estate transactions, in addition to protecting a property owner or hypothecary creditor against the risks that a jurist (notary or lawyer) may not be able to detect in the context of his due diligence for a real estate transaction (sale or financing).
This post, published on Éditions Yvon Blais’ blog on latent defects on August 9, 2016 (FR), reminds us that a problem/defect affecting an immovable that was discovered after the sale does not automatically constitute a latent defect covered by the legal warranty of quality.
This post, published on Éditions Yvon Blais’ blog on latent defects on July 22, 2016 (FR), reminds us that giving notice of a defect after an unreasonable period of time does not automatically result in the recourse’s dismissal if the seller is not able to prove a real prejudice resulting from the delay in the notification.
This post, published on Éditions Yvon Blais’ blog on latent defects on July 13, 2016 (FR), discusses the principles governing the reduction of the sale price for latent defects, in light of the Court of Appeal’s judgments in Verville (Full Text | Fiche Quantum) and Lahaie (Full Text | Fiche Quantum).
Many business people consult us to evaluate the benefits of setting up a management corporation, commonly known as a holding company. First and foremost, a holding company allows for the transfer of surplus cash accumulated in the business (the operating company). This transfer is made through the payment of intercorporate dividends, which are generally exempt from taxes.
Sale of a Business: Sell the Shares or Buy the Assets?
This chronicle is intended to summarize important considerations from each party's point of view.
The Family Trust: What Exactly Does It Allow?
A trust is an independent patrimony created by a settlor and managed by one or several trustees for the benefit of the beneficiaries. The beneficiaries have no right of ownership over the property held in trust, which is instead within the trust’s separate patrimony. There are several types of trusts, but this article will focus on the discretionary family trust.
Real estate fraud by identity theft is a situation where a fraudster impersonates the real owner of an immovable free of hypothecs to obtain a loan on said immovable. The fraudster shows up at the financial institution and then to the notary with fake identity cards, posing as the real owner of the immovable. Then, the fraudster cashes the loan and disappears. The fraudster then defaults on the loan and the hypothecary creditor undertakes a recourse against the immovable and the real owner. The real owner then realizes that his immovable was hypothecated without his knowledge and that he is now subject to a hypothecary recourse for the defaulted payment of a loan he never took.

References: v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v.