Équipe Lefrançois
Seller advice

Selling with or without a legal warranty of quality?

The loss of value due to the withdrawal of the legal warranty depends on the circumstances. The specific situation is key to assessing the impact on the selling price.

2 min readUpdated on August 12, 2024

Although it is based on concrete figures derived from thorough and well-considered research, I would like to use my professional experience to add a few nuances to the analysis of the influence of the legal warranty on real estate sales prices that you will find in the back of our magazine. To this end, I've listed below a few examples of how this loss can be minimized - in some cases, almost entirely.

From what I've observed in the field, the percentage reduction associated with the withdrawal of the legal warranty can vary according to specific circumstances. For example, for an elderly couple who have lived in the house for 50 years and wish to sell to lighten their maintenance responsibilities, the value of the house is little or unaffected by the absence of a legal warranty. Similarly, a young couple who bought a house a few years ago without a legal warranty, and who resell it under the same conditions, will generally see the value of the house unchanged or almost unchanged. In these 2 situations, the withdrawal of the legal warranty is considered more "normal", and very easy to explain.In the case of an estate, if the liquidators are familiar with the house and the work carried out, as well as having carried out a pre-sale inspection, but do not wish to assume responsibility for it, the value of the property generally remains unchanged or almost unchanged.On the other hand, if the liquidators fail to provide information on the condition of the house, the value could fall due to the increased risk. For a younger couple, aged between 30 and 60, having lived in the house for several years and selling it without a legal warranty after having bought it with one, the confidence of potential buyers could be shaken enough to result in a more considerable loss of value.I could, of course, give many more examples, but these situations are used as illustrations to demonstrate my point more concretely.In short, although the withdrawal of the legal warranty can greatly affect the value of a property, this loss may be less or non-existent depending on the specific situation. It is therefore essential to consider various external factors when deciding whether or not to include the legal warranty in the sale, in order to determine whether the potential financial loss can be avoided, and whether the seller is prepared to assume it if it cannot.

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