What is a hidden property defect
In legal terms, a hidden defect in a property is a defect that existed at the time of the transfer of title, i.e. when the property was purchased, but could not reasonably have been discovered by the buyer even upon a thorough inspection. Typically, these are defects that are not apparent at first glance, but only become apparent after a certain period of time – for example, after the first rain, winter or the strain of normal use of the house.
Imagine buying a house that looks like a dream home. A month later, after the first heavy rain, you discover that water is leaking into the basement because the house has not been properly waterproofed. Or you discover that the wiring is substandard and in danger of short-circuiting. Such defects are classic examples of hidden defects. A buyer would not be able to detect them during a normal inspection because he or she does not have specialist equipment or the ability to dismantle the house structure.
According to the Civil Code, the seller is liable for defects that were present when the item was taken over, even if they do not become apparent until later. The law thus protects the buyer who acted in good faith. It is important to distinguish between hidden defects and obvious defects, i.e. those that were apparent on inspection. If the buyer could see them (for example, a crack in the wall), he cannot later claim them as hidden defects.
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What is considered a hidden defect in the property
A hidden defect in a property is not every inconvenience that appears after the purchase. To be a defect, several conditions must be met: the defect must have existed at the time of the transfer, it must be undetectable to the buyer and it must not be caused by normal wear and tear or improper use. Typical examples are defects in the structure, insulation, wiring, heating system, drainage or roof structure. Conversely, painting, plaster repairs or changing locks are not hidden defects.
An interesting example from practice is a case where the buyer, after purchasing the flat, found that noise from a neighbouring business was penetrating the flat. At first glance, the apartment seemed quiet because the inspection took place when the business was closed. The court held that this was a latent defect because the noise could not have been reasonably detected at the time of purchase. Another case might be a house where the seller covered up mold with new paint or masked cracks with plaster. If these problems appear soon after the purchase, there may be a deliberate concealment of a hidden defect.
An expert’s report often plays a decisive role. An expert can determine whether the defect actually existed at the time of sale. If so, the buyer has a claim against the seller. However, the situation is not always clear-cut.
Who is liable for hidden defects in the property
The seller is always liable for hidden defects. According to the Civil Code, the seller guarantees that the property is free from defects that would prevent its normal use. This liability applies both to individuals and to developers or real estate agencies if they act as sellers. Significantly, liability cannot be completely excluded by contract – even if the contract of sale contains a clause such as “the buyer buys the property as it stands and lies”, the law protects the buyer to a certain extent.
The seller has a duty to notify defects if he is aware of them. Concealing or covering up defects may even be considered fraud. If it is proved that the seller knew about the hidden defect and concealed it, the buyer can claim not only a discount on the purchase price, but also rescission of the contract and damages.
In the case of real estate, there is a longer time limit for claiming defects – the buyer can claim defects up to five years after the transfer of ownership. This is particularly important for new buildings, where defects often become apparent after several seasons. On the other hand, the buyer must act without undue delay after discovering a defect. If he or she delays, he or she may lose the claim.
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How to deal with the discovery of a latent defect
The discovery of a hidden defect often triggers emotions ranging from shock to frustration. However, it is important to keep a cool head and proceed systematically. The first step is documentation – take a photo of the defect, write down the date you discovered it and a description of the situation. If possible, bring in an expert to confirm the defect. An expert report can be key evidence in court later.
The next step is to report the defect to the seller. It should be in writing, brief but clear. Specify exactly what you found, when and how the defect occurred and what solution you want – for example, a repair, a price reduction or withdrawal from the contract. We recommend that you use registered letter or data mail to prove delivery.
If the seller refuses to accept liability, you can contact a lawyer. We can help you draft a legal challenge, represent you in negotiations and litigation. An out-of-court settlement is usually the quickest way, but if the situation escalates, the court may order damages or a refund of part of the purchase price. In such cases, legal help is essential, as it is often not just about money, but also about protecting your rights and the peace of mind of your home.
We know from experience that many disputes end in amicable settlements – the seller will often agree on financial compensation rather than risk losing in court. In addition, a lawyer can help you set expectations correctly and calculate what makes economic sense. In cases where the seller has acted dishonestly, a claim for damages and default interest may also be part of the claim.
Can hidden defects in the purchase be avoided?
The best defence against hidden defects is prevention. Have the property thoroughly inspected by a professional – a structural engineer, structural engineer or technical inspector – before signing the purchase contract. The cost of an inspection is negligible compared to the costs that may be incurred later. Also check the building documentation, such as the building permit, revisions, plans, any building modifications.
The purchase contract should contain a clear statement by the seller about the condition of the property. If the seller claims to be unaware of any defects, this should be explicitly stated. This increases your protection in the event of a dispute. Avoid general wording such as “the property is sold as it stands and lies”, as such clauses tend to be mainly advantageous to the seller.
Pay particular attention to new buildings from developers. Hidden defects such as inadequate insulation, cracking plaster or poor floor expansion can also occur here. Therefore, check everything carefully after taking over the apartment and claim the defects immediately. Timeliness and documentation are the keys to success.
A hidden property defect can turn an ideal purchase into a nightmare. However, from a legal perspective, you are not defenceless as the law is on the buyer’s side. The important thing is to act quickly, document everything, and don’t be discouraged. Each case is individual and often the details – when the defect was discovered, how it was described and how the seller reacted – are crucial.
Remember that if a hidden defect manifests itself within five years of purchase, you have a chance to exercise your right. The sooner you start, the better your chances of success.
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Summary
A hidden defect in a property is a defect that existed at the time of purchase but was not detectable during a normal inspection – for example, hidden mould, leaks, cracks in the structure or faulty wiring. The seller is responsible for these defects and is obliged to report them if he knows about them. Concealment of a defect may also be considered fraud. The buyer has the right to demand repairs, a reduction in the purchase price, withdrawal from the contract or compensation for damages up to five years after the transfer of the property, but must act without undue delay after discovering the defect. The key to success is careful documentation, expert opinion and timely legal consultation. If a hidden defect is discovered, don’t be discouraged – the law is on the side of the honest buyer and an experienced attorney can help you defend and enforce your rights effectively.
Frequently Asked Questions
What is considered a hidden defect of the property?
A hidden defect is a defect that existed at the time of the transfer but was not detectable during a normal inspection – for example, leaks, mould under the plaster or non-functioning wiring.
How long can I claim the defect?
For real estate, there is a time limit of up to five years from the transfer of ownership, but you must report the defect as soon as it is discovered.
Who is responsible for hidden defects?
The seller is responsible. If the buyer knew about the defect and concealed it, the buyer may also claim damages.
Can I withdraw from the contract because of a hidden defect?
Yes, if the defect is serious and prevents the proper use of the property, you can withdraw from the contract and demand a refund of the purchase price.
How can I prove that the defect existed when I bought it?
Usually through expert reports and other evidence – for example, emails, photographs or witness statements.