Landlord Liability: What to do in case of hidden defects?

Questioner

Our house was sold in November 2018, the transfer was on January 18, 2019. Now the buyer wants to hold us liable for hidden defects. There is wood rot in some of the window frames, but we didn't know anything about it. The house was painted on the outside in 2015 and we didn't hear anything from the painter that there would be wood rot. The interior was painted in 2012 and wood rot was found in 2 window frames and repaired, this was also mentioned in the sale. Can they hold us liable for the full amount or only for the repair costs?

Lawyer

The buyer can of course hold you liable, but it is questionable whether you are also liable for the defects found. This requires that there is non-conformity. Non-conformity occurs if the defects existed at the time of purchase and prevent normal use of the home and were not or should not have been known to the buyer at the time of purchase. Firstly, you can take the position that the defects do not prevent normal use of the home. Secondly, you can defend yourself by stating that the wood rot was known to the buyer, or at least should have been known during a proper structural inspection. The buyer has a duty to investigate. He should therefore have investigated whether the home had any defects. If the buyer has not had a structural inspection carried out, any defects that would have come to light during a structural inspection will be at his expense. You, on the other hand, have a duty to report. You must report known defects, even if they have been repaired. You have reported the known wood rot. Given his knowledge of the defects in the frames, it would have been up to the buyer to have the condition of the (other) frames examined. I am therefore of the opinion that you are probably not liable for the defects found.