The purchase of a house is often a source of surprises and the bad ones are known in legal jargon as "hidden defects".
Buying a house is often a source of surprises, and the bad ones are known in legal jargon as "hidden defects".
A couple fulfills their dream by purchasing a century-old house located on agricultural land, for a sum of $115,000. Six months pass and the buyers notice "a high level of humidity in the basement and mold stains on the walls." After examination, the buyers' expert discovers that the original stone foundation is doubled with concrete blocks.
After putting the sellers on notice, the buyers undertake repairs, have the house raised three feet, pour a new foundation, and turn to the Court* to claim over $185,000 in damages from the sellers.
The court emphasizes that if a buyer requests a price reduction instead of canceling the sale, they "must establish that they would not have paid such a price if they had known about the defect affecting the house". Therefore, if the repairs exceed the price paid, a request for a price reduction cannot be considered. Buyers cannot "unjustly enrich themselves through the repairs".
Considering the extent of the work done and the significant increase in value given to the house, i.e., 70% of the original value, $22,000 in damages is awarded to the buyers.
One may want to push hard in their demands to the seller when a hidden defect is discovered, but it is reassuring to know that the court can take a closer look at the ingredients and measure the recipe more subtly.
*CA 200-09-006472-085
