How to Negotiate a Price Reduction Due to Property Defects
A client of mine bought a family house. After moving in, she discovered the sewage system was incorrectly connected and rainwater leaked into the basement. Repairs were estimated at over €12,000. Instead of a lengthy lawsuit, we negotiated a price reduction with the seller, and she had the repairs done according to her own preferences. She saved time, stress, and money.
This article is part of the Main Purchase Agreement Hub, where you’ll find all core articles on this topic.
You Might Be Thinking…
“A seller would never voluntarily agree to a discount.”
Quite often they do – if they realize that:
the defect is provable,
legally they would still be liable,
an agreement is cheaper and faster than litigation.
Clients Often Ask Me…
How should I draft the first request for a discount?
How much should I ask for?
What if the seller claims they “didn’t know” about the defect?
Do I need an expert report before negotiations?
Could I lose my rights while negotiating?
Legal Framework in Brief
Civil Code §§ 2106–2107: right to a discount for defective performance.
Civil Code § 2129: hidden defects of buildings – up to 5 years to claim, with a 2-year presumption for consumers.
Negotiations do not extend deadlines – defects must still be reported on time and in writing, otherwise the right is lost.
Negotiation Tactics Step by Step
1. Timely Defect Notification
In writing (registered letter + email).
Describe the defect, when it appeared, and that you claim a discount.
2. Attach Evidence
Photos, expert reports, or a technician’s protocol.
Don’t wait for court – use the report as leverage in negotiations.
3. Propose a Concrete Solution
State the amount of the discount (repair cost estimate + buffer).
Offer alternatives (seller pays for repair vs. discount in cash).
4. Apply “Soft Pressure”
Emphasize that you prefer to avoid court but are prepared to act.
Point out litigation costs and risks for the seller.
5. Use a Lawyer
A letter from a lawyer carries much more weight.
Often the mere involvement of an attorney motivates the seller to settle.
Risks and Common Mistakes
No written notice → in court, you cannot prove timely notification.
Asking too much or too little → seller may walk away or exploit your weak position.
Relying on oral agreements → without a written amendment, you risk never receiving the discount.
Wasting time → negotiations must not exceed statutory limits (5 years, or 2 years with consumer presumption).
Checklist for Successful Negotiation
✔ Timely written notice of defect.
✔ Evidence attached (photos, expert opinion, protocol).
✔ Reasonable amount requested.
✔ Alternative solutions offered.
✔ Written records of all negotiations with legal assistance.
Lawyer’s Recommendation
✔ Never negotiate without written records.
✔ Don’t hesitate to set a specific figure – negotiations won’t move without it.
✔ If the seller resists, use a formal pre-litigation notice. It is often the last step before settlement.
✔ Negotiate efficiently but always keep deadlines in mind.
FAQ
What if the seller claims they didn’t know about the defect?
It doesn’t matter – liability for defects is objective.
Do I need an expert?
Usually yes, at least an initial estimate of repair costs. Without it, you cannot justify the amount.
How large a discount can I claim?
It equals the difference between the value of the property without defects and the defective property. In practice, based on repair costs.
What if we don’t reach an agreement?
Then you file a lawsuit – with the advantage that you already have evidence and a negotiation history.
How I Can Help
Draft a formal request and settlement proposal.
Calculate a reasonable discount and prepare documentation.
Negotiate directly with the seller on your behalf for a quick resolution.
- Publikováno:
- Naposledy aktualizováno: 06/09/2025
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How to Negotiate a Price Reduction Due to Property Defects
Print A client of mine bought a family house. After moving in, she discovered the sewage system was incorrectly connected and rainwater leaked into the
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