When is there a defect in the property you have purchased?

When purchasing used homes, the issue of defects is regulated by the Alienation Act of July 3, 1992, no. 93. There is a defect if the home does not meet the requirements for quality, execution, and function as per the agreement between the parties. The assessment of defects takes into account the condition the buyer had reason to expect based on the purchase price and other circumstances. An objective assessment is made of the home's condition compared to a normal good used home standard.

The seller is obliged to provide accurate and complete information about the property. Withheld or incorrect information about conditions the buyer had reason to expect to receive can constitute a defect. Common examples are physical weaknesses such as rot, leaks, and mold, but also hidden errors and deviations from public law requirements can be relevant.

New homes and the Housing Construction Act

For the sale of new homes, it is the Housing Construction Act of June 13, 1997, no. 43 that applies. This law is relevant to agreements between consumers and contractors for the construction of a new home. There is a defect if there is a deviation from contractual fulfillment or prescriptive legislation. The work shall be performed professionally well and in accordance with the agreement. Relevant issues can be material defects, construction errors, incorrect information, or violations of the contractor's guidance and disclosure obligations.

If not otherwise agreed, a new home should have a normal good quality. Stricter requirements are usually set for a new home than a used home.

Common requirements for defects

Regardless of whether the defect pertains to a new or used home, it must be of certain significance for the buyer to be able to assert it. Trivial deviations rarely constitute a defect. The buyer must also complain within a reasonable time after the defect was or should have been discovered to retain the right to make a claim.

Sanctions for defects

For defects that meet the legal conditions, current sanctions may be a price reduction or correction, or in severe cases, cancellation. The buyer can also claim compensation. The choice of sanction depends on a concrete assessment based on need and reasonableness. In the sale of new homes, correction will often be the primary sanction, while price reduction and cancellation are more applicable to used homes.

Preventing disputes

Disputes about defects in home purchases are not uncommon in the courts. Parties may have strong financial incentives to try the case legally. To prevent conflict, a clear sales process, a comprehensive purchase contract, and the parties being aware of their responsibilities are crucial. Using an experienced real estate agent and a thorough condition report is often advisable.

Conclusion

By familiarizing oneself with the rules on defects, as well as using common sense and necessary diligence, one can largely ensure a successful home sale for both buyer and seller. If disagreement still arises, it may be wise to seek legal assistance at an early stage to limit the conflict and protect one's interests as best as possible.