In practice, we encounter situations where the sellers believe that if they sell the property, their obligations end there.Therefore, it often happens that they hide some shortcomings, whether of a more serious or less serious nature. In fact, the law is on the side of the buyers. The seller is responsible for all defects of the sold property within 24 months of the transfer. And that regardless of whether he knew about them or not. It is not possible to pretend that we didn't know about it, or it didn't happen to us. What options does the buyer have after the defects appear? We will also look at how to sell a property with defects. 

The seller, as the owner of the property, is obliged by law to notify buyers of defects in the object of transfer.

"If a defect that the seller did not warn the buyer about subsequently becomes apparent, the buyer has the right to a reasonable discount from the negotiated price corresponding to the nature and extent of the defect; if it is a defect that makes the thing unusable, he also has the right to withdraw from the contract."

At the same time, the buyer is obliged to assert the claim arising from the previous sentence without delay, but no later than within 24 months from the transfer of the property. . .. . We know from court practice that the seller is also responsible for such defects of the property, which he did not know about at the time of the transfer and could not therefore draw attention to them. At the same time, the buyer is also entitled to compensation for damage and reimbursement of costs associated with the exercise of his rights (such as court and legal fees). A claim for liability for defects cannot be asserted f there are obvious defects or they can be ascertained from the relevant records, with the exception of the case where the seller assures the buyer in writing that the item is free of any defects. ¹

What if you have a property for sale with defects? 

In the past, the connection was popularly used - The property is sold as it stands and lies, based on § 501 of the Civil Code of the Slovak Republic. Court practice has shown us again that this provision cannot be applied to the sale of real estate. The aforementioned provision actually exempts the sold item from liability, but only in the case of the sale of the so-called in total. So, for example: I am selling the workshop with tools, but it is not possible to determine the condition of the items sold individually, which are sold together as a whole, I am selling the total of the items as they stand and lie. 

What do we recommend to clients when selling?

1. The basis is communication with a potential buyer. It is essential to inform him truthfully about the condition of the property and its possible defects. We can expect that in such a case, the buyer side will try to negotiate the price, but it should be remembered that applying a price discount will always be a better way than a lawsuit. 
2. In the case of the sale of an older property, it is necessary for the buyer to be aware of the wear and tear of the property, which brings with it not only obvious but also hidden defects.
3. Definition of defects in the contract documentation - write down the defects of the property. If it is an older property, outline the defects. 
4. In the purchase contract, we also include information about the provided discount from the price of the propertydue to its obvious and hidden defects. 
5. Require a thorough inspection of the property's condition by the buyer for example by an architect or expert. We recommend that the buyer commit to the verification in question contractually, for example in the reservation contract. 

When selling or buying real estate, we recommend always consulting an expert who can help you avoid problems. We come across cases where sellers are assured that they will have peace of mind after the sale. Or even with buyers who signed all the papers in good faith without checking them thoroughly and also signed a notification about defects in the property being sold, which they did not know about in advance.

Do you need advice? Do not hesitate to contact us. 

Your ProFin Experts team! Translated by Barbora Zemko Zuzaniaková

1. zdroj: Občiansky zákonník, §596-600 ↩︎