The purchase of a property can be a source of problems for both the seller and the buyer, especially when the buyer discovers that they are not dealing with a treasure, but with a hidden defect.
Buying a property can be a source of problems for both the seller and the buyer, especially when the buyer discovers that it's not a treasure, but a hidden defect.
Thus, buyers, following the acquisition of units in a completely renovated and restored condominium building, discover significant hidden defects. Four months after notifying the developer-seller to make the necessary repairs, the parties reach an agreement. According to this agreement, the developer-seller undertakes to pay 25% of the costs of the chosen contractor for the corrective work. During these works, carried out in the presence of the developer-seller, the contractor notifies the parties that he has found that the required corrective work is much more extensive than originally anticipated. The developer-seller immediately expresses disagreement and goes on vacation without suggesting an alternative solution. Despite this absence, the works continue, as they cannot be left unfinished.
Following the developer-seller's refusal to bear the additional costs, the buyers turn to the Court* to be reimbursed. The developer-seller argues that his refusal to pay is related to the absence of a written report on the aggravated defects and his disagreement regarding the additional work performed.
The court rejects the claims of the developer-seller since he:
- received a notification before the start of the work;
- had the time and means to verify the existence, nature, and extent of the defects;
- always had a representative present from the beginning of the work;
- was notified by the contractor, upon discovery, that the defects were more serious than anticipated;
- was required to proceed without delay, given the urgency of the work.
The court orders the developer-seller to reimburse the buyers, as he was not prevented from verifying the actual defects and necessary work. Furthermore, he did not demonstrate that he was able to repair the defects at a lower cost himself.
The difference between discovering a treasure or a hidden defect is that its discovery makes the former owners either happy or unhappy.
*C.A. 500-09-024441-149
