Statutory Warranty and Hidden Defects When Buying

What statutory warranty is

Statutory warranty is the seller's liability, provided for in the Civil Code, for defects of the thing sold. It operates by force of law, regardless of whether the parties mentioned it in the contract, and protects the buyer when the acquired property turns out to be defective. The essence of warranty is ensuring that the buyer receives a thing consistent with the contract.

Liability under statutory warranty covers both apparent and hidden defects, whereby in practice the latter, invisible at the moment of purchase, are of the greatest significance. Thanks to warranty, the buyer is not left alone with a problem they could not have known about before the transaction.

Physical defects and legal defects

The Civil Code distinguishes physical defects and legal defects. A physical defect consists in the property's non-conformity with the contract, for example when the thing does not have the properties the seller assured, or is incomplete. Typical examples are hidden dampness, mould or significant faults in installations.

A legal defect, on the other hand, concerns the legal situation of the property, for example when it is the property of a third party or is encumbered by a right the buyer did not know about. Both types of defect may trigger warranty rights, although they differ in nature.

Hidden defects and the buyer's knowledge

Hidden defects are of particular significance, that is, those the buyer could not easily notice during an ordinary inspection of the property. It is precisely these that most often become a source of disputes, because they reveal themselves only after some time of use. Warranty is meant to protect the acquirer against such surprises.

The buyer's knowledge at the moment of concluding the contract is, however, significant. If they were aware of a particular defect and nevertheless decided to buy, their rights in this respect may be limited. Therefore it is important to reliably document the state of the property before the transaction.

The buyer's rights

Under warranty, the buyer has several rights at their disposal. They may demand a reduction of the price to an extent corresponding to the defect, demand its removal, and in the case of a significant defect submit a declaration of withdrawal from the contract. The choice of right depends on the nature of the defect and the circumstances of the case.

Making use of warranty does not always exclude the pursuit of further claims, for example for damages, if there are grounds for it. In practice, the manner of exercising the rights and their scope tend to be the subject of negotiations, and in the event of a dispute a court rules on them.

Time limits and filing claims

Warranty rights are limited in time, so it is crucial to act promptly after detecting a defect. The defect should be appropriately documented and reported to the seller, preferably in a form that allows the content and date of the report to be demonstrated. Delay may weaken or nullify the possibility of pursuing claims.

It is worth remembering that warranty is in some situations limited or excluded in the contract, whereby the effectiveness of such provisions depends on the circumstances, including whether the seller did not deceitfully conceal the defect. Given the complexity of the issue, in more difficult cases it is worth using the help of a lawyer.

Summary: how to protect yourself when buying

Statutory warranty is an important legal protection of the buyer, thanks to which the seller is liable for physical and legal defects of the property, including hidden defects. The buyer may, among other things, demand a reduction of the price, the removal of the defect, and in the case of a significant defect withdraw from the contract. Because these rights are limited by time limits, after detecting a defect one should act quickly, carefully documenting it and reporting it to the seller.