The owner of a beautiful stone cottage in Quebec is suing the former occupier for allegedly failing to disclose that a violent killing took place inside the property. 

According to a lawsuit seen by CTV News, the previous owners of the stunning $1.6 million home - or $1.2 million in US dollars - were hiding a sordid secret. 

Located in picturesque Hudson just steps from the banks of the Ottawa River, the peaceful surroundings and quaint exterior of the home belie a dark history. 

Six years ago, Normand James, 52, who was schizophrenic, died when he broke into the house and the owner stabbed him 10 times in self-defense, news reports show.

The previous owner was a woman in her 40s with three children inside the property, and she was questioned by police on the day of James' death, but later released. 

A coroner concluded that James tried to leave after the violent altercation but collapsed outside the home close to the front door. He was declared dead in hospital. 

In April 2024, the property was purchased for just under $1.6 million CAD by its current owners, who said they were oblivious to the bloodshed that unfolded inside. 

The homeowners, who have not been named, have sued the previous occupiers for $425,000, claiming they failed to disclose James' death on the seller's declaration. 

'If the plaintiffs had been informed of this violent death ... and the tragic circumstances of this widely publicized tragedy in a timely manner, they would not have purchased the property or paid the asked price,' their lawsuit reads. 

Real estate broker Mark-Andre Martel, who is also not involved in the case, said he would usually reduce the price of a home by 10-15 percent if a violent death or suicide had occurred inside. 

'Ultimately, when you have that type of disclosure it diminishes the pool of buyers for any given property. And if you have less buyers, well then the price will be lower as well,' Martel told CTV News.

The new owners are hoping to recoup 25 percent of the price they paid for the home plus damages once their case goes to court. 

They are also suing the sellers' listing agent for $25,000. 

The listing agent, who was not named, claimed in her defense statement seen by CTV News that the sellers of the Rue Main property did declare the death.  

'The seller's declaration … accurately described the incident … it would have been incorrect to indicate in that declaration that [the intruder's] death occurred on the property, as no evidence supports such a conclusion,' she wrote. 

In the declaration, the previous owners did indicate that there had been an 'intrusion / altercation', documents show, and the sellers claim that the buyers should have asked questions about this if they were concerned.

However, the sellers ticked 'no' when asked whether a violent death or suicide had happened inside the home, because James may have died outside or in hospital. 

Real estate lawyer Maxime Laflamme, who is not linked to the case, told CTV News that sellers should answer this question directly, but there is a gray area. 

'If I get in a car crash but I die in the hospital, did I die in the hospital or in a car crash? It's a little bit that the paradox of the event occurred in the home, but a consequence occurred outside of it,' he said. 

Laflamme said the outcome of the court case depends on whether the judge decides that the sellers should have been more transparent, or if responsibility laid with the buyers to do their due diligence. 

'It's probably going to be this kind of tug-of-war between where the seller is entirely forthcoming. And did the buyers inquire enough?' he said. 

The home's intruder had a previous history of mental illness, and was once charged with the attempted murder of a police officer. 

The woman who stabbed him was not charged in connection with the death.