If a defect later emerges that the seller did not disclose, you are entitled to a reasonable reduction in the purchase price. If it makes the property unusable, or the seller gave false assurances about its qualities, you may withdraw from the agreement. Speed is crucial: notify the seller without undue delay, and no later than 24 months after taking possession, or your rights expire.
What remedies are available for hidden defects?
Section 597 of the Civil Code governs the seller’s liability for hidden defects. If a defect later emerges that the seller did not disclose, you are entitled to a reasonable reduction in the agreed price, corresponding to the nature and extent of the defect. If it makes the property unusable, you may withdraw from the agreement. You may also withdraw where the seller assured you of particular qualities, such as a leak-free roof or the absence of defects, and the assurance proves false (Section 597(2)). Your right to damages remains available alongside these remedies (Section 600).
Typical disputes concern damp and mould, structural defects, faulty installations, unauthorised construction or undisclosed flooding of the land.
By when must I notify the seller?
You must exercise defect liability rights by notifying the seller without undue delay, and no later than 24 months after taking possession. If the period expires without notification, the rights lapse (Section 599). We recommend written notification with proof of delivery: describe the defect, attach photographs or an expert opinion, and state your requested remedy. Notification precedes any court dispute and is necessary to preserve your defect liability rights.
Also check the purchase agreement. “As is, where is” wording and the scope of the seller’s declarations can significantly affect your position. This is precisely what we assess in a purchase agreement review before signing.
How we proceed
Through our property defects and withdrawal from an agreement service, we assess whether the defect is hidden and which remedy is realistically available, prepare a properly substantiated notice and negotiate a reduction with the seller. Court proceedings are the final step. If you are still buying, thorough due diligence through our property purchase service costs less than any defect dispute.
This answer provides general information on the law as at 21 July 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.
