Real Estate Talk:
With or without warranty

The pros and cons of buying or selling with or without warranty

By Joseph Marovitch

Updated March 12, 2026

Imagine! You just purchased your dream home. You followed all the right steps, from using a qualified broker to having an inspection. All conditions are complete to your satisfaction, possession has taken place, and you are now enjoying your new home.

One day, not long after you have moved in, you are gardening on a beautiful, warm, sunny day when, all of a sudden, as you’re digging a hole to plant your tulips, you strike oil! Not the Beverly Hillbillies’ kind of “get rich oil” but rather the oil from a buried, leaky oil tank in your backyard that was used long ago as part of the heating system.

You bring in a city inspector, tests are performed, and you find you have an environmental contamination problem in your backyard. Who do you call, and who is responsible for cleaning up the mess and removing the tank?

The seller is supposed to sell the property without issues that can de-value or render it unliveable, unless they sold the house without warranty, as is, at the buyer’s risk.

If you purchased the property with warranty, the previous owner would be responsible. However, the previous owner could hold the owner before that owner responsible. In fact, all the previous owners are responsible until you find the owner who was aware of the issue or the last living owner.

To understand what warranty or without warranty means, first know that the home inspector is only responsible for the issues in and around the house that can be seen. The home inspector is not responsible for issues they cannot see, such as structural cracks, broken linings in the chimney, or buried old oil tanks.

The issues that can pose a problem but cannot be immediately detected are called hidden or latent defects. The seller is supposed to sell the home without issues that can devalue or render it unlivable unless they sell the house without warranty, as is, at the buyer’s risk.

The words sold without warranty, as is, at the buyer’s risk, must be placed in the following areas:

• The brokerage contract
• The Centris listing
• The promise to purchase
• In the deed of sale

There are reasons to sell without warranty, and there are cons to selling without warranty.

Reasons for buying and selling without warranty:

• The vendor inherited the house but never lived in it; therefore, they do not want to be responsible for hidden defects.
• The vendor is aware that the house may have hidden defects and, again, does not want the buyer to hold them responsible for issues that may come up.
• The vendor is moving far away and does not want to be bothered.
• The buyer may intend to completely renovate the house and is not concerned with hidden defects.
• The buyer wants a lower purchase price and is prepared to take the risk of hidden defects in exchange.

In most cases, where the seller lived in the house and maintained the house in good condition, the house is sold with warranty.

Cons to selling without warranty:

• The vendor may end up with a lower selling price or take much longer to sell, since selling without warranty raises many red flags.

It should be noted that even if the seller is selling without warranty, the buyer can still acquire warranty from all previous owners who sold with warranty. This will be discussed in the next issue.

The information in these articles is summary. Should you have questions, comments or wish to discuss further, please refer to the comments section at the bottom of the page or contact me directly.

As well, to view past articles, click here.

Next article: Acquiring warranty when the current seller is selling without warranty

State of the market

As the U.S. war on Iran continues, oil prices have risen due to Iran blocking the Strait of Hormuz, a throughway for other Middle East countries to export oil. Oil is required to transport goods, for heating, for raising crops, and for everything in the supply chain of goods and services. The effect is that prices have risen across the board.

As an investor, homeowners, and buyers, the war presents many opportunities, however the real estate opportunity presented is that, as long as the war lasts, the more pent-up demand will grow. When the war ceases, demand will be high, and values will rise.

‘Keep an eye on the market and global events. Include them in the equations when deciding to buy or sell, as they directly affect prices and future carrying costs.’

The current advantage for sellers is that property values increase as there are buyers who must purchase. The disadvantage is that selling times may be longer since the issues confronting buyers are price and future carrying cost, which is why tactical pricing and targeted marketing are more important than ever.

The advantage for buyers is that some sellers cannot afford the rising carrying costs. Therefore, negotiation may be more flexible.

Keep an eye on the market and global events. Include them in the equations when deciding to buy or sell, as they directly affect prices and future carrying costs.

Have a great week.

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Other articles by Joseph Marovitch