The Consequences of the Bad Faith of a House Seller

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Cologne, Germany -- (SBWire) -- 05/15/2013 --GRP Rainer Lawyers Tax Advisors, Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, Stuttgart, Hanover, Bremen, Nuremberg Essen and London www.grprainer.com/en explain: The Koblenz Higher Regional Court (judgment of 15 January 2013, Az.: 4 U 874/12) decided in favour of a purchaser whose house’s roof was affected by a marten infestation. A few months after the acquisition of the house, the purchaser discovered the damage.

However, the sellers of the house had told him before that they were not aware of any hidden defect in the house. In reality, they had discovered the damage before and tried to rectify it during a partial refurbishment of the roof. They stated that they therefore assumed that the house was now free from defects. Nevertheless, the marten lived in the roof for about a year, making noises and apparently destroying it. Therefore, in the opinion of the Koblenz OLG, the sellers of the house must have assumed or at least suspected during the partial refurbishment that the rest of the roof was also damaged.

In the agreement of the sellers and the purchaser, the sellers had excluded all warranties for defects. However, the purchasers could bring claims for damages because a seller cannot invoke a warranty exemption insofar as he has fraudulently concealed a defect or assumed a guarantee for the condition of the object.

The judgement of the Koblenz OLG shows that purchasers should not be immediately discouraged by warranty exemptions of the seller. Liability for bad faith cannot be readily excluded. Instead, a purchaser whose item is concerned by defects should seek the advice of a lawyer active in the real estate law. He will be able to carefully examine the purchaser’s individual situation and claims.

A seller, for his part, should also always legally secure himself. Consulting an experienced lawyer as early as the planning of the sale can potentially protect him from nasty surprises, such as an ineffective warranty exemption.

GRP Rainer LLP www.grprainer.com/en/ is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.

Contact Michael Rainer
Lawyer, Managing Partner
GRP Rainer LLP
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50672 Cologne
Germany
Phone: +49 221-27 22 75-0
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GRP Rainer LLP
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