You have found your dream home! You have (almost) finished unpacking all the moving boxes and have been living in your new home for several weeks. Suddenly, you discover something you hadn’t noticed before: a hidden defect. What now?
What are hidden defects?
A hidden defect is a defect that you only discover after purchasing your home. This is unfortunate, as initially, it is up to you as the owner to resolve the problem. The seller is not automatically liable for such defects.
In some cases, however, they may be. Therefore, it is important to know which hidden defects a house can have and when the seller is or is not liable.
Types of hidden defects
If a door is broken, you will naturally notice it immediately during the viewing, just like a flooded basement. But what are the typical defects that are often overlooked?
The most common hidden defects are:
- Leaks and blockages
- Wood rot in the roof or window frames
- Defective central heating system
- Longhorn beetle or woodworm
- Cracks in walls
- Subsidence of the foundation
- Asbestos
It is therefore essential to pay close attention to these matters during a viewing. Be sure to ask the seller or the real estate agent about them, as not all defects are immediately visible. Furthermore, as a buyer, you have a duty to investigate.
When is the seller liable?
Hidden defects can result in significant costs. Therefore, you want to know who is liable for the damage. In principle, you purchase the house with all visible and hidden defects, meaning you are often liable yourself. However, there are situations in which the seller is liable. You can read more about these here:
1. The house is no longer suitable for normal use: Most purchase contracts state that the purchased property is suitable for normal use. Is the house at risk of subsidence due to a poor foundation? Or is a leak so severe that it creates a dangerous situation? In such cases, you usually cannot use the house normally and can hold the seller liable for the repair costs.
2. The seller intentionally concealed the defect: The seller has a duty of disclosure. This means they must report a defect, even if you do not ask about it. In this case, you must be able to prove that the seller must have known about the defect. This could be the case, for example, if you notice immediately after the purchase that the heating does not work, or if damp patches on the floor or wall have been covered by a rug or painting.
What can you do as a buyer?
It can be very difficult to hold the seller liable for hidden defects in your newly purchased home. However, there are a few steps you can take to protect yourself as much as possible should the situation arise:
Contacting the selling party
If you discover a hidden defect, your first step should be to contact the seller or the seller’s real estate agent. Explain the problem and propose an inspection to determine the extent of the defect. It is important to do this in writing and to keep all communication as evidence of your report. In some cases, the seller can be held responsible for the repair costs, or a price reduction can be negotiated. In other instances, insurance may cover the costs. It is advisable to seek professional legal advice to understand your options and rights in your specific situation.
Legal action
If the problem cannot be resolved through negotiations with the seller, you may consider taking legal action. This may involve hiring a lawyer to represent your interests and assist in seeking a solution, such as obtaining compensation. Keep in mind that legal proceedings can be time-consuming and costly, so weigh the potential benefits against the drawbacks before taking this step.
However… prevention is always better than cure:
- Engage a buying agent when purchasing a home. They know exactly what to look for during the process. Did you purchase your home with our help? Then we will, of course, assist you if you discover hidden defects after the transfer of keys.
- Have a structural survey carried out: an expert knows exactly where to look to uncover any potential defects. Moreover, they are not influenced by the “rose-colored glasses” through which you might view your future home.
- Make an offer subject to the survey: this allows you to withdraw from the purchase if the survey reveals serious defects.
- Pay attention to the age clause: this is often included in the purchase contract for older homes. It means the seller is not liable for defects that are common in older properties.
Discovering hidden defects in your new home is never pleasant, but it is important to know that you have options. Did you buy your home with our help? We will naturally help you navigate the right path to reach a suitable solution. Want to know more? Please contact us. We are happy to assist you!
