5 Practical Tips for Home Buyers: What to Consider When Choosing Your Dream Home

Buying a home is an important decision, because everyone wants their dream home. What should you keep in mind so that your dream home doesn't turn into a source of problems? Unfortunately, this is exactly what has happened to many people, and Maiko Kalvet, head of the ERGO legal aid costs insurance portfolio, shares one instructive experience.

What can happen to a home buyer?

One of our clients found an offer on a late spring day that seemed to fit exactly with his dreams: a beautiful house with a large garden, away from the city bustle. Although the house was not brand new, everything appeared to be in excellent condition at first glance. The transaction was completed quickly and the notary confirmed that the house had no hidden defects.

A few days later, the family moved in with excitement. At first everything seemed almost ideal, but soon problems began. As the cold weather arrived, it became clear that the house could not be heated properly. Calling in building experts revealed a series of serious defects: inadequate insulation; lack of ventilation; defective exterior walls, roof and foundation; extensive mold damage; unusable fireplace.

The family immediately informed the sellers, but they refused to cover the costs or buy the house back. Out-of-court negotiations did not yield results and the dispute continued in court. After court proceedings lasting over half a year, the sellers offered a solution: they would buy the house back at the same price, reimburse all costs related to the transaction, and cover part of the expert examination costs. The client was very satisfied with this solution and the entire purchase amount was refunded. Legal aid costs, which amounted to almost 10,000 euros, were covered by the client's legal aid costs insurance.

What can you do to make home buying safer?

1. Inspect the property to be purchased carefully both inside and outside

Among other things, look for possible damage: signs of moisture, mold, cracks and other defects. Check that faucets, showers and toilets are in working order. Make sure that water pipes and drains are not leaking. Are all outlets and switches working? Ask about the age and condition of the electrical system. Find out whether the heating system works without glitches and ventilation is adequate to prevent moisture problems. Are there no signs of decay visible on the roof, foundation or facade?

2. Order a pre-purchase audit from a building expert to identify hidden defects

A pre-purchase building audit can save you from large expenses and problems in the future. An expert can identify defects that may go unnoticed during a normal inspection.

3. Don't rely too much on the valuation report, it doesn't reflect hidden defects

The valuation report provides an overview of the market value of the real estate, but may not reflect all possible defects. Therefore, in addition to the valuation report, it is important to rely on the opinions of building experts and your own observations.

4. Familiarize yourself with all documents of the house or apartment beforehand, especially if renovation work has been done

Before making a final decision, be sure to familiarize yourself with all documents. If renovation work has been done in the house or apartment, make sure that it complies with building standards and meets all requirements. This will help avoid potential legal and technical problems in the future.

5. When buying an apartment, communicate with neighbors and the condominium board before the sales transaction

Communication with neighbors and the condominium board provides valuable information about both the general condition of the building and the community. This way you can get information about, for example, upcoming renovation work or past problems.

How to get help if problems arise?

Maiko Kalvet recommends concluding legal aid costs insurance to get additional support if problems do arise. Legal aid costs insurance could be taken out now or at least three months before purchasing real estate. After buying a new home, you should add it to the policy immediately.

ERGO legal aid costs insurance helps in situations where the insured or his family has been treated unfairly and financial expenses or lost benefits are involved. The insurance covers costs related to legal aid, protects your rights in court and provides guidance on how to handle the situation that has arisen. Learn more about legal aid costs insurance here.