Hidden defects in home purchases: How to avoid painful surprises?

Imagine this: You’re an entrepreneur purchasing a premises for your business. You see the potential, but after a few months, serious defects emerge. Mold on the walls and leaks make the atmosphere far from suitable for work. What now? Just when you thought you made a splendid deal, a financial pitfall awaits you.

What does the law say, but what’s in your contract?

According to article 7:17 of the Dutch Civil Code (BW), you have the right to a property that meets the contract's agreement. This means that the property must conform to reasonable expectations as agreed upon. However, in practice, many sellers come with limitations that can hinder you as a buyer.

Consider the standard clauses from NVM. Often, a 'age clause' and a 'normal use clause' are included; this significantly limits the seller's liability. This means that you, as the buyer, carry a considerable burden of proof when claiming a defect. If the property is over twenty years old, a claim based on expiration may not be possible, or a claim regarding non-conformity may be deemed inadmissible due to such clauses. So, you cannot just complain about defects after the fact that you did not explicitly address in your purchase contract.

What did the judge decide in this case, and why is it educational?

Take for instance ruling ECLI:NL:RBNHO:2024:12403. Here, the buyer purchased a house and discovered mold a few months after the transfer, which he attributed to defects that the seller had failed to disclose. The judge scrutinized the evidence and concluded that there was insufficient proof that the defects existed before the sale. As a result, the claim was denied.

What you should take away from this? It is crucial for you as an entrepreneur to document all evidence thoroughly. A defect must be demonstrably existing before the sale in order to successfully demand compensation. This means you cannot simply approach after the fact if you don’t have the correct papers or recordings to substantiate your claim.

What does this mean concretely for you as an entrepreneur?

Here are three important lessons for you to apply immediately:

• Engage a building expert before purchase. This prevents surprises after the sale.
• Pinpoint non-compliance immediately. As soon as you discover a defect, inform the seller in writing. This is crucial for your rights.
• File complaints promptly. You often have a limited timeframe to take legal action after discovering defects. Be vigilant!

What do you do now, concrete action plan

Take the following steps immediately:

1. Only visit properties that have been inspected by a professional. This gives you immediate insights into the state of the property and its defects.
2. Document everything. Ensure you have photographs, reports, and written communication with the seller. This evidence is invaluable should disputes arise later.
3. Establish clear agreements in the purchase contract. Consider hiring a lawyer specializing in real estate to review your contract.

Stay vigilant regarding hidden defects and don’t let yourself be surprised after purchase. It is always better to be prepared than to sit with the consequences.