Buying property

Estonian Law of Obligations Act says that if any hidden faults appear after the purchasing of real estate, the purchaser must report that the terms of the contract were not met. This must be told to the previous owner within reasonable time after the faults were discovered or should have been discovered.

If the purchaser does not report discovered faults in time, then he or she cannot claim that the terms of the contract have been breached. If delay in reporting a fault has a reasonable excuse, then the purchaser may still lower the price for the purchase or demand that the seller covers the damage that occurred, but not the costs for profit that has not been received. The term “reasonable time” has not been stated clearly in the law, but generally it is considered that reasonable time is approximately two month after the faults were discovered or should have been discovered.

§ 222 from the Law of Obligations Act says, that if a thing does not conform to the contract, the purchaser may demand the repair of the thing or substitution of the thing from the seller if this is possible and does not cause the seller unreasonable costs or unreasonable inconvenience. Considered should be the value of the thing, the significance of the lack of conformity and the opportunity for the purchaser to acquire a thing, which conforms to the contract from elsewhere without inconvenience.

If the purchaser legitimately requires the repair of a thing and the seller fails to repair the thing within a reasonable period of time, the purchaser may repair the thing or have the thing repaired, and claim compensation for any reasonable costs incurred thereupon from the seller.

The seller is deemed to be in fundamental breach of a sales contract also, if the repair or substitution of a thing is not possible or fails. The contract has also been breached if the seller refuses to repair or substitute a thing without good reason or fails to repair or substitute a thing within a reasonable period of time after the seller is notified of the lack of conformity.

In the event that the seller has made a fundamental breach of contract, the purchaser does not have to determine an additional term to the seller and can withdraw from the contract.

Law of Obligations Act (cons 2011) Võlaõigusseadus

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