When buying a house or a condominium, hidden defects are one of the most common reasons for legal disputes. What qualifies as a hidden defect, and what are the responsibilities of buyers and sellers? Here are 100 common questions and answers about hidden defects in Sweden.
1. What is a hidden defect?
A fault that existed at the time of purchase but that the buyer could not reasonably have discovered through inspection.
2. Can hidden defects occur in both houses and condominiums?
Yes, although the rules differ slightly between real estate and condominiums.
3. Who is responsible for hidden defects in real estate?
The seller, if the defect existed at the time of purchase and the buyer could not have discovered it.
4. Who is responsible for hidden defects in a condominium?
The seller, if the property deviates from what the buyer reasonably could expect.
5. What is the buyer’s duty to inspect?
The buyer must thoroughly inspect the property before purchase.
6. What is the seller’s duty to disclose?
The seller must inform the buyer of serious faults that the buyer could not discover on their own.
7. What is the difference between hidden defects and visible defects?
Visible defects can be found through a normal inspection, while hidden defects cannot.
8. Must a hidden defect be serious?
Yes, it must affect the value or usability of the property.
9. Can the buyer claim compensation for hidden defects?
Yes, usually in the form of a price reduction or, in serious cases, cancellation of the sale.
10. What is a price reduction?
A financial reduction in the purchase price to compensate the buyer.
11. Can the sale be canceled due to a hidden defect?
Yes, but only if the defect is significant.
12. What does it mean that the defect must have existed at the time of purchase?
The defect must have been present when the sales agreement was signed.
13. What if a defect appears after the purchase?
The buyer is normally responsible unless a warranty or agreement states otherwise.
14. Does the defect have to result from the seller’s negligence?
No, the seller can be liable even without negligence.
15. How long does the buyer have to notify about a hidden defect?
Within a reasonable time after discovery, and no later than ten years for real estate.
16. What is a reasonable time for notification?
Usually a few months from when the defect was discovered.
17. How does the buyer notify the seller of a defect?
By sending a written notice describing the defect and the buyer’s demand.
18. Should the notification be in writing?
Yes, to avoid disputes over whether the notification was made.
19. What happens if the buyer fails to notify in time?
The buyer may lose the right to claim the defect.
20. What is a concealed hidden defect?
A hidden defect that the seller has intentionally covered up, potentially leading to liability for damages.
21. Can the buyer claim damages for a hidden defect?
Yes, if the seller has acted negligently or intentionally concealed the defect.
22. Are hidden defects different in old versus new houses?
Yes, buyer expectations depend on the age and condition of the property.
23. What is a waiver of liability for hidden defects?
A clause stating that the seller takes no responsibility for hidden defects.
24. Are waivers of liability valid?
Yes, if they are clear and not contrary to good faith.
25. What does ”sold as is” mean?
That the buyer accepts the property in its current condition, with some legal limitations.
26. Is the buyer protected even with a ”sold as is” clause?
Yes, if the property significantly deviates from what the buyer could reasonably expect.
27. What is a typical hidden defect?
For example, water damage behind walls or in the roof not visible during the viewing.
28. Can lack of building permits be a hidden defect?
Yes, if the buyer was not informed.
29. Can incorrect property size be a hidden defect?
Yes, if it significantly deviates from the stated size.
30. What is a building inspector?
A professional who assesses the property’s condition.
31. Is the buyer required to hire an inspector?
No, but it is highly recommended.
32. Does the inspection report affect liability for hidden defects?
Yes, it can influence what the buyer is expected to have discovered.
33. What is a pre-purchase inspection?
An inspection carried out before completing the purchase.
34. What does ”taken into use” mean?
That the buyer has started using the property, which may affect the right to claim defects.
35. Who has the burden of proof for hidden defects?
The buyer must prove that it is a hidden defect.
36. Can the seller prove the opposite?
Yes, for example, by showing that the defect was discoverable.
37. What are typical defects in condominiums?
Surface issues and interior fittings, which are usually the buyer’s responsibility.
38. Who is responsible for defects in common areas?
The condominium association, not the seller.
39. Can the buyer notify the condominium association of defects?
Yes, but only for defects that the association is responsible for.
40. Does the ten-year rule apply to condominiums?
No, the Swedish Sale of Goods Act applies, with shorter time limits.
41. What is the difference between the Land Code and the Sale of Goods Act?
The Land Code applies to real estate, while the Sale of Goods Act applies to movable property and condominiums.
42. What does ”significant defect” mean?
A defect that greatly impacts the use or value of the property.
43. Can minor defects be considered hidden defects?
Usually not; minor issues are the buyer’s responsibility.
44. Can construction code violations be hidden defects?
Yes, if they impact safety or usability.
45. What is a construction defect?
Technical faults in the construction that may be hidden defects.
46. Do hidden defects apply to gifted properties?
Yes, if the gift involves compensation.
47. Do hidden defects apply between private individuals?
Yes, unless otherwise agreed.
48. What is seller’s insurance?
Insurance that protects the seller against claims for hidden defects.
49. What is hidden defect insurance?
Insurance that covers costs for hidden defects after a sale.
50. Who can take out hidden defect insurance?
The seller, sometimes arranged through the agent.
51. Can the buyer insure against hidden defects?
Usually not; liability remains with the seller.
52. Does insurance affect the buyer’s rights?
No, the buyer can still make claims against the seller.
53. What is an expert inspection?
A more thorough technical assessment of the property.
54. When is it too late to make a claim?
After ten years for real estate, or two years for condominiums if the buyer is a consumer.
55. Can hidden defects concern the land itself?
Yes, such as contamination.
56. What are environmental risks as hidden defects?
Pollution or land damage affecting use.
57. Can issues in shared property be hidden defects?
No, those are the association’s responsibility.
58. Can issues with plumbing be hidden defects?
Yes, if the systems are faulty.
59. What are electrical system defects?
Electrical faults that may be dangerous or not up to standard.
60. Is poor ventilation a hidden defect?
Yes, if it does not function as expected.
61. Can water damage be a hidden defect?
Yes, this is one of the most common issues.
62. Can mold be a hidden defect?
Yes, if it was not visible during inspection.
63. What is radon as a hidden defect?
Hazardous levels of radon gas in the property.
64. Do hidden defect rules apply to new constructions?
No, warranties and construction insurance usually apply instead.
65. Can a new owner continue an existing dispute?
Yes, if the rights have been transferred.
66. Can a defect be considered accepted if the buyer delays notifying?
Yes, if the buyer waits too long.
67. Can issues in the property’s history be hidden defects?
Yes, such as unauthorized construction.
68. Do hidden defect rules apply to vacation homes?
Yes, the same rules apply.
69. Are companies treated differently as buyers?
Yes, companies generally have less protection.
70. Can the parties agree to waive hidden defect liability?
Yes, but it must be clearly stated in the agreement.
71. What are ”known and unknown defects”?
Known defects have been discovered or disclosed; unknown defects may be hidden.
72. What should you expect with older properties?
Wear and tear is usually not considered a hidden defect.
73. Can the buyer demand replacement?
No, this is rarely applicable in real estate sales.
74. What is the materiality requirement?
The defect must be significant to justify cancellation.
75. Can construction debris be a hidden defect?
Yes, if it negatively affects the property.
76. Can incorrect drawings be a hidden defect?
Yes, if they influenced the buyer’s decision.
77. What is an invalid building permit?
A permit that is later found to be invalid.
78. Can a non-existent easement be a hidden defect?
Yes, if the buyer relied on it.
79. What is a request for correction?
A demand for the seller to fix the defect.
80. Are real estate disputes often about hidden defects?
Yes, they are very common.
81. Who decides whether it is a hidden defect?
Ultimately, the court if the parties cannot agree.
82. Can disputes be resolved through mediation?
Yes, it is often faster and less costly than going to court.
83. What is the role of a legal advisor in hidden defect disputes?
To assess the case and help the buyer or seller pursue or defend claims.
84. Can the parties agree on how to resolve disputes?
Yes, for example, through arbitration.
85. Is arbitration binding?
Yes, it results in a final and enforceable decision.
86. How much does it cost to pursue a hidden defect claim?
Costs vary depending on the case and legal representation.
87. Who pays legal costs?
Usually the losing party.
88. Can legal expenses be covered by home insurance?
Yes, legal protection is often included.
89. Can the seller argue the buyer accepted the risk?
Yes, especially if the property was sold ”as is”.
90. Can a defect be hidden even from the seller?
Yes, but the seller may still be liable.
91. What is a typical liability waiver?
A clause stating the property is sold ”as is”.
92. What should be included in the sales agreement?
Clear wording about liability and any waivers.
93. Are land issues more common than building issues?
Both are common, but building defects are more frequently claimed.
94. Can incorrect building permits be hidden defects?
Yes, if they affect the property’s usability.
95. What is a value dispute?
When parties disagree on how much the defect affects the property’s value.
96. Can the buyer hire their own inspector afterward?
Yes, to support their claim.
97. Can the seller demand proof from the buyer?
Yes, the buyer carries the burden of proof.
98. Can disputes be settled out of court?
Yes, settlement is common and can save time and money.
99. What is a court ruling in a hidden defect dispute?
The court’s final decision on responsibility and compensation.
100. Why is legal advice important in hidden defect cases?
To assess your rights, frame your claim properly, and avoid unnecessary costs.
