In the realm of real estate transactions in Spain, the legal treatment of hidden defects is crucial to protecting buyers’ rights and preserving market integrity. Hidden defects are flaws not visible to the naked eye in a property that, when they arise, pose legal questions about the rights and obligations of both the buyer and the seller. This article explores how Spanish law addresses the issue and protects the parties involved in real estate transactions.
Definition of Hidden Defects
In the Spanish legal context, hidden defects are non-apparent flaws that affect the quality of the property and that the buyer could not have discovered through ordinary inspection.
It is important to note that in real estate transactions, these defects may be related to structural aspects, installations, or other features that impact the value and use of the property.
Seller’s Obligations and Liability According to the Civil Code
The principal obligation of the seller, under Article 1.461 of the Civil Code, is to ensure that the sold property is free of hidden defects that make it unsuitable for the intended use.
Article 1.484 of the Civil Code further establishes that the seller of an item, whether movable or immovable, is obliged to guarantee against hidden defects that it may have, as long as such defect makes it unsuitable for the intended use or diminishes its value to such an extent that the buyer would not have acquired it or would have requested a price reduction. However, the seller’s liability is limited to non-manifest or visible defects; even if the defects are hidden, the seller will not be liable if the buyer, due to their profession or trade, should have easily known about them.
Loss of the Property
The Civil Code also contemplates scenarios of loss of the property (https://www.boe.es/buscar/act.php?id=BOE-A-1889-4763#art1487) caused by hidden defects, such as in the case of properties with defective electrical panels and/or materials directly related to a fire that destroys the building. In this case, it is necessary to distinguish whether the seller was aware of the existence of the hidden defects.
In the first scenario, the seller must reimburse the price, pay the costs of the purchase contract paid by the buyer, and compensate for damages.
In the second scenario, the seller only needs to return the price and cover the costs of the purchase contract that the buyer paid.
Loss Due to Fortuitous Event
If the sold item with hidden defects gets lost due to a fortuitous event or the buyer’s fault, it is also necessary to distinguish whether the seller was aware of such hidden defects.
If the seller unknowingly sold the item with defects, the buyer can claim the difference between the purchase price and the item’s value when it got lost. This value should be lower due to the hidden defects.
Legal Actions Against Hidden Defects
Given the above, the question arises: what actions can the buyer take upon receiving an item with hidden defects? Article 1.486 of the Civil Code grants the buyer the option to either rescind the purchase contract with a refund of paid expenses or obtain a proportional price reduction determined by experts. Additionally, if the seller was aware of the hidden defects and failed to disclose them to the buyer, the latter may claim damages if he decides to rescind the contract.
Time Frame for Claim
Lastly, it is crucial to note that the buyer has a limited time frame to file a claim for hidden defects, as he only has six months from the delivery of the item, as established by Article 1.490 of the Civil Code. Therefore, promptness in filing the claim is essential, as any delay could affect the legal viability of the claim.
In light of this, conducting a thorough inspection before purchasing real estate in Spain to detect any potential hidden defects is highly advisable. Although some defects may not be apparent, having the advice of professionals such as architects, surveyors, and lawyers specializing in real estate law can minimize risks and provide a more comprehensive view of the property.
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