REALWorld Law

Sale and purchase

Seller's warranties

What seller's warranties are provided under statute in the sale of real estate in this country (for example, as to the state of the building, asbestos etc)?

Czech Republic

Czech Republic

Under the Civil Code, the seller must inform the buyer of any defects in the property that he is aware of. The term 'defects' covers factual defects (such as pollution, asbestos etc) as well as legal defects (such as the rights of third parties etc). If a seller fails to disclose this information, the buyer is entitled to a discount on the purchase price or, in some circumstances, to withdraw from the agreement.

If the buyer withdraws from the transaction, he is entitled to receive a refund of the price paid for the property and to obtain additional compensation for any losses suffered.

Claims in respect of hidden defects in the property must be made within five years from the acquisition, except when the seller knew or must have known about the defect at the time of handover of the property.