The Risk of Hidden Defects in Real Estate – How to Protect Buyers and Sellers
Buying your dream home only to discover damp walls, faulty wiring, or a leaking roof is every buyer’s nightmare. In my practice, I often see disputes over hidden defects in real estate, which can destroy the joy of a new home and drain savings. The law does grant buyers certain rights, but without proper preparation, enforcing them can be very difficult.
This article is part of the Main Purchase Agreement Hub, where you’ll find all core articles on this topic.
You Might Be Thinking…
“But once I sign the purchase agreement, I buy the property as it stands, right?”
It’s not that simple. The seller has a duty to disclose known defects, and the buyer has the right to seek remedies if a defect emerges later.
Clients Often Ask Me…
How long do I have to claim a hidden defect in a property?
How do I know if it’s a hidden defect?
Does the seller have to know about the defect to be liable?
Is it worth getting an expert inspection before buying?
How can I avoid turning a “dream home” into a financial trap?
Hidden Defects in a Nutshell
Definition – a defect not detectable during normal viewing, which appears only after purchase.
Seller’s duty – to inform the buyer of all known defects (§ 2084 of the Civil Code).
Claims – the buyer must notify defects without undue delay; for buildings the law provides a 5-year period (§ 2129 Civil Code), for other property the usual period is shorter (2 years).
Burden of proof – the buyer must prove that the defect existed at the time of transfer.
Risks and Common Mistakes
No expert inspection – the buyer relied on a quick viewing and later discovered severe dampness.
Defects covered up – the seller painted over mold to conceal it. The dispute ended up in court.
Poorly drafted contract – missing clauses on liability for defects made the claim difficult.
Late notification – the buyer discovered a defect but reported it after the deadline.
How to Protect Yourself – Recommended Safeguards
Buyer
always request an expert inspection before buying (structure, wiring, roof, dampness),
demand explicit declarations by the seller on known defects,
include in the contract a warranty for specific features (e.g., boiler functionality),
place the purchase price in escrow until defects are clarified.
Seller
be transparent – you must inform the buyer about known defects,
avoid disputes by providing technical reports and inspections,
limit liability in the contract if the property is older,
consider your own expert inspection – as protection against false claims later.
Lawyer’s Recommendation
Buyers: invest in an expert inspection – a few hundred euros can save you thousands in repairs.
Sellers: don’t try to conceal defects. Once uncovered, it often leads to litigation and price reductions.
Always include clear contractual provisions on liability for defects and how claims will be handled.
Checklist to Prevent Disputes
✔ expert inspection before purchase
✔ declaration of known defects in the contract
✔ warranty for selected features
✔ escrow of purchase price until resolved
✔ timely notification if a defect is found
FAQ
How long do I have to claim a hidden defect in real estate?
For buildings, the period is 5 years; for other property, usually 2 years (§ 2129 Civil Code).
Does the seller have to know about the defect?
If the seller knew and concealed it, they are always liable. If they did not know, liability follows the general rules of defective performance.
Is an expert inspection worth it?
Yes, it often reveals serious issues not visible during a casual viewing.
How I Can Help
Draft or review the contract – to ensure hidden defects are properly addressed.
Recommend the right expert inspection – for structure, installations, or energy efficiency.
Represent you in disputes – if a problem has already arisen, I will secure your rights and compensation.
- Publikováno:
- Naposledy aktualizováno: 02/09/2025
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The Risk of Hidden Defects in Real Estate – How to Protect Buyers and Sellers
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