Hidden property defects fuel more disputes in Estonia

Property buyers are increasingly making claims against sellers after deals close, with some demands exceeding the purchase price, ERR reports. Experts say claims over hidden defects are becoming more common, and buyers are using artificial intelligence to draft them rather than turning immediately to lawyers.

Karlis Kolk, a lawyer and board member at real estate agency Uus Maa, said buyers are more aware of their rights. Common complaints include noise from neighbours, construction defects, structural settling and inadequate waterproofing. Problems with dry rot are also frequent in older wooden houses. Mold can be harder to establish as a hidden defect because it may be difficult to prove when it appeared.

Marko Sults, head of Ehituskaitse Büroo, told ERR’s Vikerhommik programme that mold can alarm residents, but it also occurs in newly built apartments. Ventilation or electric underfloor heating may be switched off to save electricity, he said. If mold develops at wall and floor joints during the typically two-year warranty period, the cause may be how the property was used rather than a construction or development fault.

Sults said renovated apartments in unrenovated buildings can be especially difficult to assess. Ventilation may be connected to the wrong shaft, or pipes may have been installed incorrectly. Buildings renovated in stages over many years can also pose problems when no records were kept, as their technical systems may be impossible to assess without opening up the structures.

Some of the costliest problems discovered after a purchase involve bathrooms, shower rooms and saunas. They may look finished, but buyers cannot inspect the structures inside before a sale. In recent years, inadequate waterproofing and unbalanced heating and ventilation systems have been common problems, Sults said, potentially leading to mold or moisture damage.

Kolk said sellers can be liable for defects they did not know about. A sale contract can include an agreement that the seller is not responsible for unknown defects, although buyers may not accept such a clause. He advised recording details in the contract, including issues such as a noisy neighbour or traffic noise.

Kolk said he has advised clients that claims over mold caused by the buyer’s own negligence are unlikely to succeed. Whether to take such a claim to court is ultimately the buyer’s decision.