Selling Problematic Real Estate: Document Everything!
When selling problematic real estate, it's important to be completely honest and document any issues that arise in the notarial sales contract. Whether it's unpleasant neighbors, missing documents, or problems with the building's structures.
Selling problematic real estate
In real estate transactions, Estonian law primarily protects the buyer, as the seller must ensure that what they promise is true. However, this doesn't mean that problematic real estate can't be sold. It can be, but defects must not be knowingly concealed, as otherwise the hidden defects provision applies, which remains in effect for up to three years after the transaction is concluded.
Put everything in writing
Most disputes arise in three types of problems:
- Defects in the interior finishing of the living space or in the building's structures and roof, which often emerge as hidden defects.
- Unpleasant or noisy neighbors. There is a court ruling on this that treats the failure to mention such residents as a hidden defect.
- The same applies when usage permits or documentation for construction work and renovation are missing.
In any case of problems, everything must be honestly disclosed and, where possible (for example, necessary documents), matters should be put in order by yourself. But that's not all – all the mentioned defects that the buyer has been made aware of must certainly be documented in the notarial purchase and sale contract as well. No matter how trivial they may seem. Unfortunately, life has shown that even a very pleasant client who says there's no problem can, for some reason, disregard the verbal agreement and file a damage claim.
Article source: Uus Maa Real Estate Office
