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You've bought a home: when can you claim compensation for defects? 

You've bought a home: when can you claim compensation for defects? 

Imagine this scenario: the long-awaited purchase of a new home, the housewarming, the first few months in your new home—and suddenly, problems begin to surface that no one noticed during the inspection. Deformed flooring, mold, moisture, drafty windows, cracking walls, or even serious structural defects. Buyers often feel helpless in such situations—especially when the developer or seller tries to shift the blame onto others or simply denies the problem exists.

However, as Kamilė Šemeklytė, a lawyer with the law firm AVOCAD, points out, homebuyers have significantly more rights in such situations than they often realize. “In practice, there are still cases where residents, upon noticing defects, delay in responding or rely solely on the contractor’s verbal promises. At such times, what matters most is not emotions, but properly documented facts and a clear plan of action,” says K. Šemeklytė.

What constitutes a defect, and when is the buyer liable for defects?

A defect is defined as a flaw in a dwelling that causes the property to fail to meet quality standards, contractual terms, or its intended use. According to the lawyer, one of the most important aspects in such cases is to determine whether the defects were apparent at the time of purchase or whether they became apparent later and could not objectively have been noticed by the buyer earlier.

“The courts have repeatedly emphasized that a buyer is not required to have specialized construction knowledge or to conduct complex technical inspections before purchasing a home. If defects only become apparent during use and the buyer had no opportunity to notice these defects during a routine inspection, they are considered defects for which the seller is liable,” explains the AVOCAD lawyer.

Second, it is particularly important to determine whether the seller informed the buyer of any existing defects at the time of the sale. If the seller informed the buyer, but the buyer nevertheless decided to purchase the property with the defects identified by the buyer, all liability for these defects passes to the buyer, and the buyer no longer has—and will not have in the future, throughout the entire warranty period—the right to make claims regarding defects that were disclosed by the seller to the buyer and where this disclosure was recorded in writing.

Thus, according to K. Šemeklytė, liability for identified defects could pass to the buyer in the following cases: first, if the defect was apparent at the time of purchase and no special knowledge was required to identify it (visual defects); second, if the seller informed the buyer in writing of the existing defects prior to the purchase of the property, but the buyer decided to purchase the property anyway. In all other cases, the seller is liable for the identified defects, unless the seller proves that the identified defects are due to normal wear and tear, improper use, or the wrongful acts of third parties.

Warranty periods: what do you need to know?

Under Lithuanian law, warranty periods apply to construction work, but many residents are unsure how long they last and what they actually cover.

According to the Civil Code of the Republic of Lithuania:

  • The standard warranty period for construction work is 5 years;
  • A 10-year warranty applies to concealed building elements (structures, piping, etc.);
  • For defects that have been deliberately concealed, a warranty period of up to 20 years applies.

As K. Šemeklytė notes, it is particularly important to know that warranty periods begin not on the date of purchase of the home, but on the date the building is certified as fit for use. Specifically, in each case, it is crucial to determine the date of the construction completion certificate or the date of approval of the declaration of construction completion. “It is precisely this document that serves as the starting point from which warranty periods are calculated,” she states.

Contractor or Seller Liability: Who Should You Contact?

In practice, consumers often find themselves in a situation where the seller refers them to a contractor, the contractor refers them to a subcontractor, and the buyer is left caught in the middle between several parties shirking responsibility.

According to an AVOCAD attorney, in such situations it is important to understand that the buyer is not necessarily required to investigate the entire internal construction chain on their own. “In judicial practice, the position is taken that the seller is primarily responsible for the quality of the sold item, while the internal relationships between the developer, contractor, or subcontractors are a matter for them to resolve among themselves,” says K. Šemeklytė. She also notes that each situation must be evaluated on a case-by-case basis—contracts, factual circumstances, the nature of the defects, and the causes of their occurrence are all relevant.

The biggest mistake is waiting too long to start gathering evidence

According to the lawyer, one of the most common problems is that residents try to resolve the conflict “amicably” for a long time, but fail to preserve evidence during that period. “Verbal promises, visits by the builder or their contractors to inspect defects, or phone calls have very limited value in court later on. As soon as defects are noticed, it is important to photograph them, film them, record the dates, submit a written complaint, and save all communication,” she emphasizes.

Another extremely important tool is an independent expert assessment. “An expert assessment often becomes the cornerstone of evidence in a case. It helps identify not only the defects themselves, but also the causes of their occurrence, discrepancies in the quality of work, and the potential extent of damage,” explains K. Šemeklytė. According to her, in practice, it is precisely professionally prepared expert opinions that often lead to a dispute being resolved before it reaches court.

When can you claim compensation?

Depending on the situation, a homebuyer may demand that defects be repaired, that the price of the home be reduced, that damages be paid, that repair costs be reimbursed, or, in certain cases, even that the contract be terminated.

However, according to an AVOCAD attorney, the most important thing in such disputes is to act promptly. “The biggest mistake is to expect that the problem will resolve itself or that a verbal agreement will suffice. The sooner a person begins to systematically gather evidence and assess their legal situation, the greater the likelihood of protecting their interests,” says K. Šemeklytė.

Although buying a home is one of the most important decisions in many people’s lives, experience shows that even new construction projects do not guarantee a smooth daily life. That is why lawyers advise not to ignore the first warning signs—it is often an early response that determines whether a defect issue will end with a simple repair or a long and costly dispute.

 

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