3 février 2023,

Foreclosures have been gaining popularity in Quebec in recent years.  Quebec residents are looking for the best DEALS on the market. This is quite understandable because real estate prices have gone up tremendously and foreclosed properties are selling below market value.

It is important to save money but you also have to understand what you are getting into. This is why we have taken the time to present everything you need to know about buying a foreclosed property, its pros and cons, and what you need to watch out for.

Comparison of multiple properties to get the best deal.

What are foreclosed or repossessed properties?

If you are browsing the internet looking for houses for sale and you come across a property that says it is a repossessed house, it means a financial institution is selling it because the owner has defaulted on the mortgage payments.

A court judgment has given permission to the lending institution to dispose of the property when the owner is insolvent or in default of payment.

The goal of the lender, of course, is to recover the money due from the loan, hence, the sale of the said property.  As such, the bank has listed the foreclosed property with a brokerage agency such as ReMax, Via Capitale. Royal LePage, Sutton, Propio Direct, etc.

Thus, you will see foreclosed properties for sale appearing under different real estate agency banners. But they can be difficult to access if you are not very familiar with real estate transactions.

The best approach to take in this case is to find a real estate broker to help you look for the right foreclosed property that suits your needs and budget.

What does buying a house in foreclosure involve?

Real estate brokers assisting homebuyers.

Are you interested in buying a foreclosed property and wondering what it entails? Should you go ahead with your plan?

First of all, you should know that foreclosed properties are usually sold WITHOUT A LEGAL WARRANTY

In a regular sale, houses for sale come with a guarantee as to the title deed and the quality of the building. However, a seller can also decide to offer a property without a legal warranty which means the buyer would give up the right to recourse in exchange for a lower price.

If a buyer decides to buy a house without a legal warranty, he will have no remedies if he discovers latent defects after the sale. Thus, the buyer assumes a higher risk and faces the consequences alone.

You need to have the title of the property checked by a notary and ask a professional inspector to inspect the property before signing a contract.

The Benefits of buying a foreclosed property

Buying a foreclosed property entails more risks because you cannot sue the seller in case there are hidden defects. However, foreclosed houses are cheaper than those sold under normal conditions.

For identical properties, a house in foreclosure can be cheaper by 10% or more than other properties. Sellers offer cheaper prices without legal warranty because they want a quick sale.

Not all foreclosed properties are good deals but you can find foreclosed houses for sale in Quebec that can save you a lot of money. For instance, a house that could sell for $300,000 can be offered at only $270,000, saving you $30,000!

As you can see, some home buyers are willing to take on the risk in exchange for a higher profit in the real estate transaction. Real estate brokers can help you find the cheapest houses for sale on the South Shore of Montreal, Quebec, Gatineau, and across the province.

Just fill out the form on this page to find the best real estate broker specializing in foreclosed properties!

Types of foreclosed properties for sale in in Quebec

Types of foreclosed properties in Quebec.

As mentioned earlier, a foreclosure or bank repossession occurs when a borrower fails to pay the mortgage. After a certain period of time, the bank seizes the property to sell it and pay off the outstanding debt. This happen with many types of properties in Quebec, not just houses. Some of the properties that we often see in repossession include:

  • Single-family Homes
  • Semi-detached houses
  • Apartments
  • Townhouses
  • Duplex units

The type of ownership, therefore, varies significantly, and often by city, sector, and according to economic conditions. 

Families often buy single-family houses, semi-detached, and townhouses, while young people, professionals, and retirees prefer condos. For this reason, you can find all kinds of foreclosed properties for sale across the province.

Foreclosures by Financial Institutions in Quebec

All banks and financial institutions foreclose on properties every year. When a repossession occurs, they will put it up for sale through a professional real estate broker.

If you want to have an advantage in finding ideal foreclosed properties for sale, you need to talk to an experienced broker who specializes in foreclosed properties.

In the following table, you will find a link that will allow you to find a broker in 2 minutes who can give you a list of foreclosures by various banks and lenders. Seize this opportunity!

Lending Institution/Bank

List of Foreclosures

Desjardins foreclosures

Get the list here

National Bank foreclosures

Get the list here

RBC Royal Bank foreclosures

Get the list here

TD Bank foreclosures

Get the list here

BMO foreclosures

Get the list here

Laurentian Bank of Canada foreclosures

Get the list here

Most common problems with foreclosures

Issues with foreclosed properties for sale.

Buying a foreclosed property presents several potential risks and issues. Indeed, houses seized for non-payment are often not in perfect condition. Owners who were forced to give up their homes due to financial problems can be under tremendous stress and cause damage to the property.

Below are some of the common problems with repossessions: 

  • Damage caused by previous owners
  • Major repairs to be done
  • Lack of maintenance over the years
  • The seller does not know the property well, therefore, omits certain information
  • The absence of a legal warranty removes possible remedies
  • Presence of latent defects not known to the bank
  • The value of the property is less than the price paid
  • And more!

Not all foreclosed properties are good investments. You must do the math and take the time to verify that the property you are looking at is really a profitable deal.

What discount can you generally get by buying a repossession?

Compare foreclosed properties with real estate brokers.

The biggest reason why buyers are attracted to foreclosed properties is because they are sold for less than their market value. However, what should not be forgotten is that these properties are sold without legal warranties. 

So what should we expect in terms of discounts?

  • The discount or price reduction granted by the bank for repossessions must be at least 10% of the value for it to be attractive to the buyer.
  • In some cases, the price drop can be 10-25% depending on the residual mortgage on the property. The lower the balance, the more leeway the bank has to post a lower price.

Each bank decides how much discount they want to give based on its value, condition, current market value, and outstanding mortgage balance. Thus, some foreclosed properties for sale are great bargains compared to other properties. It is important for you to know how to evaluate them in terms of profitability vs. risks. An experienced broker is the best professional to help you in this regard.

Is a pre-purchase inspection necessary when buying a foreclosed house without legal warranty?

Pre-purchase home inspection an essential step.

If you make the decision to buy a foreclosed property without a legal warranty, you need to get a professional home inspection.

As you are waiving any and all recourse against the seller in the event of hidden defects or problems, knowing the potential problems with the property through a home inspection is critical.

If you spot any major issues, then you can discuss them with the seller and negotiate. Often, if your inspector finds a problem, you can potentially save money by negotiating with the seller.

One thing is certain – do not make the mistake of buying a property without a proper home inspection!

The few hundred dollars it costs to do a pre-purchase inspection can save you thousands of dollars in potential repairs. 

Hidden defect without legal warranty? Talk to a real estate lawyer!

Legal advice regarding hidden defects.

Have you discovered a possible hidden defect in a house you bought without legal warranty?

What should you do?

In the event of a problem regarding a foreclosed property or a property sold without a legal warranty, you need to speak to an experienced real estate lawyer.

A good lawyer can tell you if you can file a claim against the seller or if you have no recourse.

A good lawyer specializing in real estate law is the best person to give you legal advice regarding potential hidden defects after buying a property.

Who should buy a foreclosed property?

Foreclosed properties are not for everyone.

These are properties that come with a higher level of risk and should only be bought by informed buyers.

Generally, this type of transaction is suitable for buyers who:

  • Want to renovate the house to resell it at a profit
  • are comfortable with risk and have a strong financial capacity 
  • Knowledgeable about real estate
  • Have strong technical knowledge in construction
  • Are not afraid of challenges, risk, and uncertainty
  • Seek to save on the sale price quickly

With real estate prices soaring, more and more buyers are interested in foreclosed properties because of the price.  Exercise caution when buying a repossession for sale.

What does a sale without a legal warranty imply in Quebec?

Sale without legal warranty at the buyer’s risk.

In real estate, certain laws were enacted to protect buyers and sellers. One of these laws concerns the legal warranty.

The legal real estate warranty certifies that the building being sold is free from defects, both in terms of the title deed and the physical condition of the building.

Only defects known to the buyer, transmitted in the seller’s declaration, or noted during a pre-purchase inspection, are not covered by this warranty.

A sale without legal warranty at the risk and peril of the buyer completely cancels this protection.

You have no recourse in the event of an apparent or hidden defect. This reinforces the importance of the pre-purchase inspection to detect problems BEFORE the purchase.

Real estate agencies in Quebec that sell foreclosed properties

Real estate brokers selling foreclosed properties.

When a bank wishes to sell one of the properties it has recovered from one of its clients, it will use the services of a real estate agency and a broker. Which agencies in Quebec sell repossessions? Here are a few examples:

  • Sutton Group
  • Reprise Quebec Group
  • Remax
  • Royal LePage
  • Via Capital
  • Owner Direct
  • Century 21
  • And more!

If you are looking for a foreclosed property and cannot find what you want, know that a real estate broker can simplify the process for you!

It could be to your advantage to speak with an expert to find deals on the market!

Where to find the best DEALS for foreclosed properties on the market?

Shopping for best property deals with a real estate broker.

It’s not just banks selling homes without legal warranty. Some estate liquidators and motivated sellers also do it. You can also find DEALS at these places.

However, in terms of foreclosed properties, you can find the best DEALS all over the province. Bargains are sometimes not easy to find and time is of the essence! It takes knowledge and privileged access to be able to find them. That’s why it’s advisable to do business with a real estate broker to find the best foreclosed property deals.

Indeed, a real estate brokers have unique access and can quickly find the biggest bargains on the market. They also have access to bank foreclosure listings before they even appear on the internet.

If you have such a professional by your side, it’s a big advantage!

Speak with a real estate broker to find foreclosed homes for sale

Compare 3 real estate brokers free of charge.

Would you like to obtain the list of repossessions for sale in your area? Most likely!

Obviously, there is no official list where all foreclosed properties for sale can be seen. However, brokers see these offers and can find the property you are looking for! These specialists in real estate transactions have privileged access that could be very useful to you in your research, including:

  • Alerts on newly-foreclosed properties
  • Broker-exclusive research tools
  • Analysis of trade-ins available by sector
  • Search according to your criteria and your budget
  • And more!

Brokers’ services are free for buyers, so you can talk to them and take advantage of their services at no cost

Take advantage of their expertise free of charge by filling out our form to compare 3 brokers in your sector to find repossessions!

How do I get a list of foreclosed properties in my area?

If you are searching for foreclosed properties for sale on Centris, Dupropio, and other websites, it could take you some time to find a suitable one.

If you want to see as many foreclosed properties for sale in your area, you need to speak with a real estate broker.

You can get a list of repossessed homes in your area by simply talking to a broker.

By doing so, you will quickly see foreclosed houses for sale in:

  • Montreal
  • Laval
  • Quebec City
  • Gatineau
  • Longueuil
  • Trois-Rivières
  • Lévis
  • Saguenay
  • Abitibi-Témiscamingue
  • Victoriaville
  • Terrebonne
  • And much more!

Fill out our form to receive a list of foreclosed properties for sale near you.

Request for free quotes for foreclosed homes from a real estate broker

Would you like to get a great property deal? A real estate broker offers his services for FREE to all buyers who want to find foreclosed homes for sale. A broker will take the time to sit down with you, establish your criteria, and then put together a strategy to find the perfect home for you.

In addition, a real estate broker will take care of all the negotiations and paperwork and give you valuable advice during the purchase. You don’t have to pay for these services because a broker is free for homebuyers.

Fill out our form, compare and find your broker, and then search for suitable foreclosed property deals in your desired area.

Curious to discover some examples of foreclosed properties across the province? We present to you 5 cities with great foreclosure deals. 

Check out our Top 5 below and discover some homes for sale in repossession in several regions in Quebec!

FAQs about repossessions in Quebec

Questions about foreclosed property sales in Quebec.

Foreclosures have been extremely popular for several years in Quebec, particularly with the rise in popularity of real estate FLIPS as well. Many investors are asking questions and want to know exactly how repossessions work. Let us tell you that it can be very interesting, but you have to exercise diligence. 

In this section, you will find some of the most popular and commonly asked questions about repossessions in Quebec. If you would like assistance from a broker, fill out our free form below!

Are all foreclosed properties for sale good deals?

 No. In fact, you have to be careful when buying a foreclosed property. Too many buyers believe that they are all bargains and that the banks are selling them below market value. Know that not all of these offers are worth it.  Sometimes, the selling price given by the bank is based on the fair market value of the property. Most often than not, foreclosed properties are in poor condition or require work. Some financial institutions adjust the selling price to take into account the absence of legal warranty which can mean that you will pay 8-10% below the normal market value. This price reduction is justified, and if you sell it in the future, you too will have to resell it 8-10% below its normal market value due to the absence of legal warranty. You must therefore make sure that you have a “deal” in your hands when you consider buying a foreclosed property.

Why are foreclosed properties cheaper?

 As we just explained, banks sell foreclosed properties for a little less than their market value for different reasons. Here are the 3 major reasons: 

  • The property is often in poor condition or requires renovations. The sale price will therefore take into account the budget required to renovate or repair the property.
  • These properties “sold without a legal warranty at the risk and peril of the buyer” which means that you will have no recourse against the bank in the event of hidden defects or problems. This clause generally lowers the value of a property.
  • Time is crucial for banks. They want to sell fast and get their money back as quickly as possible. To achieve this, they will then often lower the selling price a little below the market value in order to attract buyers and to make a quick sale.

Who is in charge of selling foreclosures in Quebec?

In Quebec, banks and financial institutions entrust to real estate brokers the task of selling houses, condos, semi-detached and other properties they have repossessed.  Brokers are in charge of selling the properties currently held by the banks.

If you wish to see a foreclosed property, you will do it with a broker. He represents the interests of the bank, and any request for negotiation on your part will be transmitted to the bank through him. It may be an agent from Remax, Via Capitale, Royal Lepage, etc., who takes care of the sale. Some agencies and brokers specialize exclusively in the sale of repossessed properties.

How do purchase offers work for a foreclosed property? 

If you are interested in buying a foreclosed property, you will need to make a traditional purchase offer submitted to the real estate broker in charge of the property. The difference with normal properties is that in this type of transaction, brokers often ask for deposits or down payments of around $5,000 or a certain percentage of the sale price to validate that you are serious. Be sure to ask the broker about the terms and conditions of purchase offers before sending one.

It is best to find your own real estate broker to represent you in this transaction to protect your interests and help you to negotiate the sale.

If you want to know how much you need to buy a house, consult our article on Closing costs for buying a house in Quebec.

Top 5 cities for foreclosed homes for sale in Quebec

Many large and smaller cities in Quebec have foreclosed properties for sale. Even in the suburbs and the countryside, you can find different types of properties for sale that match your needs.

For instance, condos, apartments, multi-family and single-family homes in foreclosure are for sale across the province.

  1. Quebec city
  2. Island of Montreal
  3. Laval
  4. Gatineau
  5. Sherbrooke
  6. Longueuil
  7. Three Rivers
  8. Levis
  9. Drummondville
  10. Sorel Tracy

The biggest challenge for investors and buyers in the province is to find foreclosures. They are not always visible or easy to find. The best step is to get a real estate broker or a real estate agency to assist you, free of charge.



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