Beware of debts when buying real property!

Buying a flat or a house? If so, you need to pay extra attention to whether there are any debts related to the property management. In a recent judgment, the Supreme Court addressed the question of whether debts related to the house and land management pass on to the buyer when the property is sold. In such a case, the debt may be, for example, a negative housing repair fund balance. In the Supreme Court's view, such a debt is not a legal defect which the buyer could subsequently claim against the seller, and the debt passes on to the buyer regardless of whether or not the buyer was aware of it.

It is necessary to proceed very cautiously when buying real property and, if possible, to carry out a legal due diligence as to detect any debts or other undesirable facts in good time and to ensure smooth course of the entire transaction. The Supreme Court has made it clear that in these cases a considerable degree of caution is required on the part of the buyer. The fact that the buyer did not request the necessary documents and did not come to know about the debt is to be considered his fault.