Buying a property is one of the biggest investments most people make. However, disputes can arise when hidden defects (dolda fel) are discovered after the purchase. In Sweden, both buyers and sellers have legal obligations regarding property defects, and disputes often require legal action. Below, we explain what qualifies as a hidden defect, the buyer’s and seller’s responsibilities, and how to handle a real estate dispute effectively.
What is a Hidden Defect in Real Estate?
A hidden defect (dolt fel) is a serious defect that existed at the time of purchase but was not visible during a reasonable inspection. These defects must also be something the buyer could not have expected based on the property’s condition, age, and price.
Common hidden defects include:
- Water damage behind walls or under floors.
- Mold and rot in areas not accessible during inspection.
- Structural defects that affect the house’s stability.
- Faulty electrical installations not meeting safety regulations.
- Sewer and drainage issues that were not apparent at the time of purchase.
Example: If a house has serious drainage problems causing water damage, and this issue was impossible to detect during inspection, it may qualify as a hidden defect.
Buyer’s Responsibility – The Duty to Inspect (Undersökningsplikt)
In Sweden, buyers have a legal duty to inspect the property before purchase. This means that if a defect could have been discovered through a reasonable inspection, the buyer cannot claim compensation from the seller later.
The inspection should cover:
- Roof, walls, and foundation for structural issues.
- Plumbing and drainage systems for leaks or blockages.
- Electrical systems to ensure they meet safety standards.
- Ventilation and insulation to check for mold risks.
A certified home inspector can help buyers conduct a thorough check. However, even with an inspection, some defects remain hidden, which can lead to disputes.
Seller’s Responsibility – Liability for Hidden Defects
Sellers are responsible for defects that:
- Existed at the time of purchase but were not disclosed.
- Could not have been discovered by a reasonable inspection.
- Significantly reduce the property’s value or usability.
However, sellers are not responsible for normal wear and tear or defects the buyer should have expected.
Example: If a seller knew about a mold problem in the attic but failed to inform the buyer, they could be held liable.
What Can a Buyer Do if a Hidden Defect is Found?
If a buyer discovers a hidden defect, they must act quickly to protect their rights.
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Notify the Seller (Reklamation)
- The buyer must inform the seller as soon as possible after discovering the defect.
- Delays can result in losing the right to claim compensation.
- The notification should be in writing and include:
- A description of the defect.
- How and when it was discovered.
- A request for compensation or repair.
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Request Compensation or Repair
- The buyer can demand a price reduction, repairs, or, in severe cases, cancellation of the purchase.
- If the seller refuses, the case may proceed to a legal dispute.
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Collect Evidence
- Photos and videos of the defect.
- Reports from a professional inspector.
- Emails and messages with the seller regarding the issue.
How to Handle a Real Estate Dispute
If the buyer and seller cannot agree, the case may need legal intervention.
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Mediation and Negotiation
- Before taking legal action, both parties can try to reach a settlement.
- A real estate lawyer can assist in negotiating a fair resolution.
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Filing a Lawsuit
- If no agreement is reached, the buyer can file a claim in district court (tingsrätten).
The court will examine:
- If the defect qualifies as hidden.
- If the seller knew or should have known about the issue.
- If the buyer fulfilled their inspection duty.
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Expert Assessments
- The court may require technical experts to evaluate the defect’s cause and impact.
Legal Costs and Insurance Protection
Real estate disputes can be costly, but legal protection (rättsskydd) in home insurance often covers legal fees.
- The insurance typically covers 80% of legal costs, with the buyer paying a deductible.
- A lawyer can assist in filing the insurance claim and handling the case.
Summary
Hidden defects can lead to serious disputes between buyers and sellers. To protect yourself:
- Buyers must inspect the property carefully before purchase.
- Sellers must disclose known defects to avoid liability.
- Legal action may be necessary if compensation is refused.
- Legal protection insurance can help cover costs in disputes.
If you are involved in a real estate dispute, consult a real estate lawyer to understand your options and increase your chances of success.
