The joy of having fulfill your dream of owning your own home can quickly diminish. If a hidden defect becomes apparent after purchasing an existing Townhouse for Sale in Dubai, it is annoying in every respect. The damage must be repairer, which means additional organizational and financial effort. There is also the controversial question of who is liable for it. Is it automatically the seller’s responsibility to resolve the problem and what defects does he have to state?
What is a hidden defect anyway?
If you want to buy a Townhouse for Sale in Dubai, you inspect it in advance to take a close look at its condition. Positive traits are mostly taken for grant. Defects are meanwhile a reason to keep the price down a bit if possible. In the legal sense, there is a distinction between 3 types of defects: overt, hidden and fraudulently conceal defects.
An open defect is easy to see and can easily be recognize by the seller as well as the prospective buyer. Examples are:
Cracks in the plaster
Windows that need renovation or replacement
noisy environment due to proximity to the airport or to a main artery
Hidden defect
The current owner does not have to clarify this separately. The opposite is the hidden defect. As the name already makes clear, this cannot be perceive immediately. A hidden defect is discover after buying a house – possibly only after several years. The buyer does not register it during the inspection and it is also not known to the seller. An expert may find it out. Examples are:
incorrect insulation of the attic
rust steel girders
Use of harmful wood preservatives
If the owner knows about a damage, which he deliberately does not mention, it is refer to as a fraudulently conceal defect.
The question of liability in the event of a hidden defect
In general, a seller is always require to deliver the goods free of defects. The basis for this is Section 433 Paragraph 1 Clause 2 of the German Civil Code (BGB). There it says: “The Townhouse for Sale in Dubai seller must provide the buyer with the item free of material and legal defects.” However, this is not always possible with an existing property. Buildings wear out over the years. In such a case, the house is deem to be free of defects if it is in an age-typical condition and shows no damage.
Usually clauses are include in the sales contract , whereby “bought as seen” is one of the most common wordings. Alternatively, the note “bought as it stands” can be found. Such formulations exclude the guarantee for defects which the buyer was aware of and which the seller was not aware of at the time of delivery. Such a disclaimer is customary – but if it is not note in the contract, the seller can also be liable for hidden defects of which he was unaware.
Buying a house
To make the facts more tangible with an example: Mold growth is often a very controversial point when buying a house. If this occurs, it can reduce the value of the Townhouse for Sale in Dubai considerably. There are several reasons for this, of which the health risks are only one aspect. It suggests a bigger problem with the property. In addition to the thorough removal of mold, it is often necessary to renew the building fabric. That causes high costs. In addition, the house cannot be habitable for a long period of time.
If the mold infestation can be clearly recognize by the prospective buyer during the inspection, it is considerer an open defect. If the interest party acquires the property under these conditions, he accepts the damage. Unfortunately, mold is often only discover after buying a house. It is not uncommon for this to happen in the course of renovation work. If neither seller nor buyer knew about it up to this point, it is a hidden defect. The previous owner would then be exempt from liability if the contract contain a disclaimer. The situation is completely different if the seller knows this problem and purposely does not mention it. Then it is a fraudulently conceal defect when buying a house, for which he is liable.
From rectification of defects to withdrawal – the buyer’s rights
If the new owner discovers hidden defects after buying the house, he bears the burden of proof. That means: He has to prove that the problem already existed before the signing of the sales contract and was known to the owner at the time in order to hold him liable. This is often not easy in practice – but at the same time it protects the real estate companies in Dubai from unfounded allegations. A building surveyor who, after a thorough examination, prepares an expert opinion can provide clarity. The buyer of the property will initially bear the costs.
Good to know
Good to know: If you are seriously interest in a property, take another look at the property. Take a real estate appraiser with you to this appointment . Although he is not able to register every problem immediately, his train eye recognizes which areas need to be examine more critically before buying. This is the best way to ensure that no hidden defects are discover after buying a house.
If it turns out that the seller has actually deliberately conceal a defect, the buyer may assert his warranty claims. The first option is what is known as subsequent performance. This means nothing other than the removal of the defect by the previous owner.
If this is not possible, the purchase price can be reduce. Since the seller has violet his obligations, the buyer is also entitle to compensation. It is also possible to withdraw from the purchase contract, which is then declare ineffective and cancel. For such a reversal, however, 2 conditions must be met. The seller has been given a time limit so that he has the opportunity to remedy the defects.
A period of 14 days is consider an appropriate period for rectification. Furthermore, it must not be a so-call minor case. That would be the case if the cost of removal is less than 5 percent of the purchase price.
Limitation periods: This is how long the buyer’s claims remain
The buyer’s claims are subject to a limitation period. It is 5 years after the property has been accept for both open and hidden defects. The situation is different if the seller has verifiably fraudulently conceal the defect. The limitation period then begins only at the point in time at which the new owner recognizes the defect and extends over 3 years.
In addition to material defects, which affect the quality of the property, legal defects can also occur. This is the case, among other things, if the rights of third parties or existing leases and leases are not disclose. The limitation period here is 30 years as define by real estate companies in Dubai.
