Hidden defects in the purchase of Real Estate in Spain

Paying attention to the hidden defects of a home is important because buying a property is one of the most significant financial transactions in a family’s life.

In this article, we delve into the realm of concealed issues that may lurk within the walls and foundations of homes. From subtle dampness and foundation flaws to less obvious problems with insulation, electrical anomalies, and more. Understanding the landscape of hidden defects is crucial for homeowners and potential buyers alike. 

What is considered a hidden defect?

The hidden defects of a home are documented and defined in Article 1484 of the Civil Code:

• “The seller shall be obliged to remedy hidden defects in the thing sold, if they render it unfit for the intended use, or if they diminish its use to such an extent that, had the buyer been aware of them, they would not have acquired it or would have paid a lower price for it. However, the seller shall not be responsible for obvious defects or those visible, nor for those not visible, if the buyer is an expert who, by virtue of their trade or profession, should easily have been aware of them.”

The discovery of a latent defect in a pre-owned residence indicates that the property you acquired does not meet the conditions communicated by the seller prior to completing the purchase. This implies the existence of significant flaws that hinder your complete enjoyment of the home to such an extent that, had you been aware of them, you would not have proceeded with the purchase.

What to do if I discover a hidden defect in my home?

If you discover a hidden defect in your home, here are some steps you can take:

• Document the Defect:
  • Take detailed photographs or videos of the defect to provide visual evidence.
  • Make written notes describing the issue, including the date of discovery.

• Review the Sales Contract with a professional:
  • Examine your sales contract to understand the warranty and liability provisions.
  • Check if there are any specific instructions or timelines for reporting defects.

• Contact the Seller:
  • Inform the seller or builder about the defect as soon as possible.
    • Use a written communication method (email or certified letter) to have a record of your notification.
• Legal Advice:
  • If the defect is not addressed or if there is a dispute, consider seeking legal advice from a lawyer, we’re specialized on it.
  • The lawyer can guide you on your rights, potential legal actions, and the best course of action.

Seeking professional advice, both in terms of inspection and legal guidance, is often crucial in these situations.

Examples of hidden defects

Hidden defects can range from structural problems to issues with plumbing, electrical systems, or other essential components of a building. When such defects are discovered after the purchase of a property, it can lead to legal and financial complications, and the buyer may have the right to seek compensation from the seller. The specifics of what constitutes a hidden defect can vary depending on local laws and regulations.

Spanish regulation does not provide a list of examples of hidden defects in a second-hand home, but we can provide you with some examples that we encounter almost daily: 

Hidden defects caused by dampness

Dampness, leaks, and seepage are some of the most common hidden defects. They are often due to poor waterproofing of the home or the presence of deteriorated pipes. 

Hidden defects in swimming pools:

These are less evident but can cause significant problems. It is one of the main reasons why people buy a home in Spain, to cool down on hot summer days.  

Hidden defects in the foundation:

Examples include cracks and fissures. These imperfections often appear over time, sometimes as a result of poorly executed renovations, work on adjacent buildings, etc. However, at other times, they result from a faulty foundation during the initial construction of the building. 

Hidden defects in finishes:

Imperfections found in floors, paint, or interior finishes of the home (such as bulges, discolorations, detachments) are often due to poor installation of materials or the use of low-quality materials. They can also stem from other hidden defects, such as dampness, leaks, or seepage. 

Hidden defects in insulation:

Issues related to noise or temperature are often due to inadequate insulation, whether it be a lack of treatment for thermal bridges, the use of inappropriate materials, poor installation, etc. 

Hidden defects due to electrical anomalies:

These can be detected in switches, lights, or outlets and may result from poor installation, the use of inappropriate materials, or very old electrical installations. Fortunately, these hidden defects are often the easiest to remedy.

How to claim a hidden defect?

The deadlines for claims depend on whether you have purchased a second-hand or newly constructed property. You can claim all defects found in a second-hand property within 6 months from date of completion of purchase, according to the Civil Code.

Defects found in newly constructed properties have longer deadlines. Article 17 of the Building Regulation Law (LOE) established three warranty periods based on the type of material damages that may occur: 10 years for structural or foundation defects, 3 years for habitability defects, and 1 year for finishing or completion defects.

The claims process is relatively straightforward but not particularly pleasant, as you can imagine. It is essential to claim before 6 months has passed by since date of purchase.

Contact us if you have any doubts or specific questions about this matter; we will be happy to represent you to ensure everything goes well.