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Defect Liability When Buying or Selling a Home

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  1. Understand what defect liability means

    If the property has a defect that wasn't known at the time of the contract, the seller may be held responsible for it within certain limits -- this is generally called defect liability. Defects the buyer already knew about, or clearly should have noticed, are typically excluded from this responsibility.

  2. Inspect the property yourself before signing

    During a pre-contract walkthrough, check carefully for signs of water damage, cracks, mold, and whether fixtures and appliances actually work. Any defect you find should be written into the special terms so responsibility is clear from the start.

  3. Understand the typical liability period and scope

    Defect liability usually needs to be raised within a set period after the buyer discovers the problem, and structural defects are often treated differently from ordinary wear-and-tear issues, so the scope can vary.

  4. Spell out responsibility clearly in special terms

    A phrase like "sold as-is" alone can leave the scope of responsibility unclear. Writing specifically who is responsible for which kinds of defects, and for how long, into the contract helps prevent disputes later.

  5. Respond properly if you find a defect after moving in

    If you discover a defect, document it with photos and video right away, then notify the seller in writing -- a text message or a formal letter -- requesting a repair or compensation.

  6. Get outside help if you can't agree

    If the two sides can't reach an agreement, you can seek help from a legal aid organization or a real estate professional association, or consider formal mediation or legal action if needed.

Who's responsible for a defect found after move-in?

When a defect that wasn't known at the time of the contract turns up after the buyer moves in, the seller is often responsible for it within certain limits -- this is what's known as defect liability. That said, the exact scope and time limit depend on your contract and local law, so this is general information, not legal advice.

Some things can be checked beforehand in public records

Certain issues, like unauthorized building modifications, can sometimes be caught in advance by checking public building records -- see our guide on how to check a building's official register.

Frequently Asked Questions

Can I still claim defect liability for something I already knew about when I signed?

Generally, defects the buyer already knew about, or could easily have noticed, at the time of signing are excluded from defect liability. If you spot something during your walkthrough, it's safer to get it written into the special terms rather than assume it's covered later.

Does a simple worn-out part count as a defect?

Ordinary wear on things like a water heater or light fixtures is often judged differently from a structural defect, so it's worth spelling out the scope of responsibility clearly in the special terms to help prevent disputes.