You may withdraw for a defect if the defect renders the house unusable, or if the seller’s assurance about its qualities has proved untrue. A valid withdrawal cancels the agreement from the outset, the seller returns the purchase price and you return the house. The cadastre records the seller as owner again by a declaratory record, provided the withdrawal is not disputed; if the seller challenges it, ownership will be decided by a court.
After moving in, it turns out that the damp in the basement is a defect that makes the house uninhabitable, or that the seller concealed something they had expressly assured you about. A reduction in price is no longer enough and you want to return to the position before the purchase. With property, however, handing back the keys is not enough. You need to know when the law permits withdrawal at all, what it brings about, and how its consequences are reflected in the cadastre, where you have meanwhile been registered as the owner.
When you can withdraw from a purchase for a defect
With a hidden defect that the seller did not point out to you, the basic remedy is a reasonable reduction in price; you may withdraw if the defect renders the asset unusable (Section 597(1) of the Civil Code). The second ground concerns the seller’s assurances:
The buyer also has the right to withdraw from the contract where the seller assured them that the asset had certain qualities, in particular qualities stipulated by the buyer, or that it had no defects, and that assurance proves untrue.
— Section 597(2) of the Civil Code (unofficial English translation)
You may also withdraw on a ground you agreed in the agreement (Section 48(1)). Where you withdraw for a defect, however, you must notify the defect to the seller without undue delay and at the latest within 24 months of taking over, failing which the rights arising from liability for defects cease (Section 599). The remedies available for less serious defects are explained in defects in a property after purchase, and what a ‘as it stands’ clause means in buying as it stands.
What withdrawal brings about
Withdrawal from a contract cancels the contract from the outset, unless legislation provides or the parties agree otherwise.
— Section 48(2) of the Civil Code (unofficial English translation)
Each party must then return everything it received under the cancelled agreement (Section 457): the seller the purchase price, and you the house. In a decision published under R 81/2014, the Supreme Court of the Slovak Republic held that a valid withdrawal from a property transfer agreement extinguishes the title on the basis of which the buyer acquired ownership, that the seller’s ownership right is restored by operation of law and that this change is entered in the cadastre by a declaratory record. The condition is that the house was not acquired in good faith by a third party before the withdrawal. It also follows from the same decision that where the validity of the withdrawal is disputed, the cadastre does not assess it and only a court can decide it.
How the return proceeds
The first step is a written withdrawal with a precise description of the defect and of the ground, delivered to the seller in a demonstrable way. If the seller accepts the ground, agree the settlement with them: when they will return the purchase price, when you will vacate and hand over the house, and that they will not challenge the withdrawal. With such documents, the seller can be entered as owner by way of a declaratory record; it is advisable to check what supporting documents the cadastre will require before filing. Until the money is back, do not hand over the house without contractual certainty that it will be returned.
If the seller rejects the withdrawal, its validity will be decided by a court, typically in a dispute about the return of the purchase price, or in proceedings for a declaration of ownership whose outcome is then entered in the cadastre. A mortgage is a further complication: if you have granted the bank security over the house, its security right encumbers the house and the return of both the purchase price and the house has to be dealt with together with the bank.
What to do straight away
Document the defect, have it assessed by an expert and notify it without delay. Do not wait for the defect to ‘mature’ before withdrawing, but do not send a withdrawal without an assessment of whether you have grounds for it either, because an invalid withdrawal cancels nothing and merely prolongs the dispute. As part of our property defects and withdrawal service we assess the ground, prepare the withdrawal and the settlement agreement, and if the seller does not cooperate we can also conduct proceedings for a declaration of property ownership.
This answer provides general information on the law as at 12 September 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.
