What are Hidden Defects in Property Sales?
Hidden defects in sales between individuals are situations in which the buyer discovers defects in the acquired property that were not disclosed by the seller during the transaction.
These defects can make the property unsuitable for its intended purpose or significantly reduce its value, which could have led the buyer to reconsider the acquisition or negotiate a lower price.
The regulation that governs this issue is Article 1484 of the Civil Code. According to this law, the seller is obligated to respond to hidden defects that affect the sold property.
However, this responsibility does not apply to obvious or visible defects, nor to those that the buyer, being an expert in the matter, should have easily known due to their trade or profession.
It is essential to consider that the regulations vary if the sale is made between individuals or between a company and a consumer.
In the first case, it is governed by the Civil Code, while in the second case, consumer protection regulations apply, such as Royal Legislative Decree 1/2007, which establishes the General Law for the Defense of Consumers and Users and other complementary laws on warranties.
Requirements for Hidden Defects Liability
In order to request liability for hidden defects in the sale of a property, the following requirements must be met:
- Concealment of the defect: The defect in the property must be hidden, that is, not visible to the naked eye and unknown to the buyer at the time of purchase.
- Severity of the defect: The defect must be serious enough to render the property unfit for its intended use or significantly reduce its utility. It should be of such magnitude that had the buyer known about it, they would not have purchased the property or would have paid a lower price for it.
- Preexistence of the defect: The defect must have existed before the purchase of the property. Defects that arise after the acquisition cannot be claimed.
The action to demand liability for hidden defects has a deadline of 6 months from the delivery of the property.
After this period, the buyer can no longer demand the seller for hidden defects, but they can still pursue actions related to the sales contract, such as contract resolution for non-compliance by either party.
If the buyer decides to exercise the action for hidden defects liability, they have two options:
a) Rescind the contract and receive a refund for incurred expenses.
If it is proven that the seller acted in bad faith and knew about the defects but did not disclose them to the buyer, the buyer may demand compensation for damages.
b) Obtain a price reduction for the property, determined by expert appraisers.
If the hidden defects result in the loss or destruction of the property, the seller must refund the purchase price and contract expenses, in addition to paying compensation for damages.
However, if the seller was unaware of the hidden defects, they will only be obligated to reimburse the purchase price and expenses incurred by the buyer.
It is important to note that it is not sufficient for the defect to appear after the purchase. The buyer must demonstrate that the defect already existed at the time of acquisition and that they could not have known about it at that time.
Additionally, the buyer’s education and knowledge will be taken into account to determine if they could have identified the existence of the defect.
Example of Hidden Defects in Sales
Property with Aluminosis:
Aluminosis is a condition that affects reinforced concrete structures in buildings and other constructions.
It is caused by a chemical reaction between the components of the concrete and the aluminum present within, leading to degradation and decomposition of the material over time.
This condition can seriously weaken the building’s strength and integrity, posing a risk to the safety of its occupants. Symptoms of aluminosis include cracks, detachment, and widespread deterioration of the concrete.
It is essential to carry out regular inspections and maintenance to detect and address this issue early on, preventing further damages.
In advanced cases, costly repairs and rehabilitations may be necessary to ensure the stability of the affected building.
Invisible Insects or Pests:
Infestations of termites or cockroaches that are not visible to the naked eye can affect the property’s structure and require expensive fumigations.
Hidden Electrical Problems:
Poorly installed cables or faulty connections that are not detected until after the purchase can lead to short circuits and fire hazards.
Wall Infiltrations:
When buying an apartment, there are no obvious signs of moisture.
However, after heavy rains, it is discovered that there are leakages in the walls, indicating issues with the walls’ waterproofing.
Structural Problems in the Property:
A house is purchased that appeared to be in good condition, but over time, deformations in the walls and difficulties in opening and closing doors and windows are observed.
Upon closer inspection, it is discovered that the property’s structure is compromised due to poor construction.
Warranty Period in Properties
For second-hand properties, the warranty period is 6 months.
For newly constructed properties, different warranties are offered:
Builder’s Insurance: Covers the repair of material damages caused by hidden defects in finishing elements of the construction for 1 year. The insured amount will be 5% of the final cost of the material execution of the work.
Promoter’s Insurance: Guarantees the repair of damages caused by defects in construction elements or installations for 3 years, in compliance with habitability requirements. The insured amount will be 30% of the final cost of the material execution of the work.
Promoter’s Insurance: Provides a 10-year warranty for the repair of material damages caused by hidden defects in the foundation, supports, beams, floors, load-bearing walls, and other structural elements that affect the mechanical resistance and stability of the building. The insured amount will be 100% of the final cost of the material execution of the work.
Lawyer for Hidden Defects in Property Sales in Marbella and Mijas
Contact our law firm in Mijas if you have or have had any issues regarding hidden defects in property sales, so that we can advise you appropriately and professionally.
Send us an email at info@realestatemijas.com or info@bonafidecosta.com.