Buyers won’t usually have to go to the building authority with questions, the Supreme Court has ruled

If you buy something, the law requires you to inspect the item you’re buying. You can’t then require that a defect be remedied or request a discount for defects that could have been identified with standard attention.

Have you ever wondered how this applies to real estate?

For example, when buying real estate, do you have to properly check that a building permit or other administrative acts have been issued?

Buyers often find out after making their purchase that such permits are missing. And until now it wasn’t clear in such a case whether buyers can claim compensation or other benefits if the buyers didn’t pay attention to whether there was a building permit or building approval.

In a recent decision, the Supreme Court has sided with the buyers, holding that the buyer will generally have rights relating to defective performance in such a case.

Thus, according to the court, it is usually the seller who should provide information to the buyer on the lack of a building permit or other administrative act. If they fail to do so, the buyer should be entitled to the rights of defective performance.