How to claim hidden defects and deficiencies when buying a property

Buying a home is a significant investment, and most expect the property to be in good condition. But what do you do if you discover hidden defects and deficiencies after taking possession? This article provides a practical step-by-step guide on how to complain about deficiencies under the Norwegian law on alienation.

Step 1: Inspect the property thoroughly

The first step is to thoroughly inspect the property after taking possession. The alienation law § 4-9 requires the buyer to inspect the property as soon as possible after taking possession. You should especially look for symptoms of hidden defects, such as:

• Cracks in the foundation or load-bearing structures

• Moisture stains or discoloration on walls, floors, or ceilings

• Mold or mildew smell

• Uneven floors or crooked windows and doors

• Rusty pipes or backups in drains

• Faults in the electrical system

It may be wise to get help from a certified appraiser or engineer to uncover hidden defects. A condition report can provide you with good documentation of the deficiencies.

Step 2: Notify the seller about the deficiency

Once you have discovered deficiencies, you must notify the seller in writing (complaint) as soon as possible, according to § 4-19 of the alienation law. The complaint must be made within a reasonable time after you discovered or should have discovered the deficiency. It is important to complain quickly to avoid losing the right to make the deficiency valid.

In the complaint, you should describe the deficiency in detail and document it with pictures and any reports. Also explain why you believe the condition constitutes a deficiency under the alienation law, for example that:

• The property deviates from what has been agreed, cf. § 3-1

• The seller has provided incorrect information about the property, cf. § 3-8

• The seller has withheld information in violation of § 3-7

Always remember to send the complaint in writing, for example as registered mail or via email. Then you have documentation that it has been sent.

Step 3: Consider a written claim against the seller

If the seller rejects the complaint or does not respond, you must decide whether you want to proceed with a written claim. In the claim, you should specify which remedy for deficiencies you wish to make valid:

• Correction under § 4-10, where the seller rectifies the deficiency at their own expense

• Price reduction under § 4-12, where the purchase price is proportionally reduced

• Cancellation under § 4-13, where the purchase is canceled and performances are returned

• Compensation under § 4-14, where the seller covers your economic loss

Be specific in your claim, both in terms of which remedy you demand and the basis for the claim. Also document any expenses you have incurred because of the deficiency. Set a deadline for feedback before taking any legal steps.

Step 4: Consider legal steps

If your claim does not succeed and the seller continues to reject the deficiency, you must consider further legal steps. You should then contact a lawyer who can assist you with an objective assessment of the case and your possibilities to succeed.

The first step will often be to send a process notice where you make it clear that you will take legal steps if the deficiency is not compensated. The next step may be to file a complaint or lawsuit in the ordinary courts. Here, good legal assistance is important to ensure that you safeguard your rights as a buyer in the best possible way.

Note that strict complaint deadlines apply in the alienation law. The buyer must complain within "reasonable time", and defect claims expire anyway five years after takeover, unless the seller has acted grossly negligently or in bad faith, cf. § 4-19.

Conclusion

Complaining about hidden defects and deficiencies in a property can be a demanding process. But by following this step-by-step guide, you have hopefully gained a good starting point for safeguarding your rights as a buyer.

Remember that deficiency cases under the alienation law can be complex both legally and evidentially. It can therefore be crucial to get assistance from an experienced real estate lawyer to find a good solution to the dispute.

We at Sterk Law Firm have extensive experience in assisting home buyers in submitting complaints and deficiency claims. With specialist expertise in property law, we can provide you with close follow-up throughout the process.