Deficiencies in real estate

If real estate is not in the state agreed upon in the sales contract it is considered deficient. Real estate can also be considered to be deficient if it deviates from what the buyer reasonably could have expected when purchasing the property. The buyer have a quite substantial obligation to inspect the property when buying real estate. It is not a requirement to hire a surveyor but it is recommended if you are unexperienced in regards to buying a house. If the seller promises or makes a claim about something, spoken or written, the buyer is relieved from his/her duty to inspect in regards to the claim or promise.

The seller is also responsible for hidden deficiencies. A hidden deficiency is something that the buyer could not have been expected to discover when performing a thorough inspection. If the deficiency is deemed to be something the buyer should have discovered the seller is relieved from responsibility.

If there is a deficiency in the property the buyer can claim for a refund. The refund should correspond to the negative impact of the deficiency (the difference between the price of the property according to the contractual state and the price of a deficient property). The price of remedying the deficiency is often used as a guide for estimating the impact. If the deficiency is of significant importance to the buyer he/she have the right to rescind the agreement. In some cases the buyer has the right to damages.

If the buyer discovers a deficiency in the property he/she shall give notice to the seller within a reasonable timeframe. If such notice has not been given the buyer might lose his/her right to make any claims based on the deficiency. In any case the right to make such claims is limited to ten years after the purchase.


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