The Federal Court of Justice (BGH) recently clarified the concept of defects when purchasing apartments in old buildings in a decision (V ZR 79/23). It stated that apartments must be dry and habitable in order to be considered free of defects. This even applies to basement apartments in old buildings near a river.
In this case, basement apartments were sold that had damp exterior walls. This was mentioned in the purchase contract. It was agreed that the buyers would carry out the renovation themselves. However, the buyers did not anticipate the expense and had to stay in their rented apartment for much longer than planned. They therefore wanted the seller to reimburse them for the rental costs. Despite being aware of the moisture problems, the BGH ruled in favor of the buyers. An apartment must generally be dry in order to be considered habitable.
The BGH clarified that an agreed exclusion of liability in the purchase contract generally releases the seller from liability for defects, unless there is fraudulent concealment. In this case, this cannot be ruled out. The exposé drew attention to the defect, but apparently not to its extent. The case was referred back to the Higher Regional Court for further examination. This court must now determine whether there was fraudulent intent in this particular case and whether the buyers may be entitled to compensation.
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