Hidden Defects in Homes: What They Are and How to Claim Them

August 18, 2025

When we buy a home, we are making one of the most important financial decisions of our lives. However, this process can always include certain risks, especially when it comes to discovering hidden defects, that is, serious flaws in the property that are not visible at the time of purchase, and that can even generate unforeseen expenses or render the property unusable.

According to some studies in the real estate sector, around 20% of real estate sales face conflicts due to hidden defects that were not declared at the time of purchase. Therefore, it is essential to know what hidden defects in homes are, how they can be detected before or after the purchase, and what legal actions can be taken to protect your real estate investment.

In this article, you will find an in-depth analysis of what is considered a hidden defect in a property and how to differentiate it from an apparent defect, the most common types of hidden defects in homes, how to detect them before purchasing, the legal rights of the buyer, and the deadlines for filing a claim, as well as several practical tips that can help you avoid potential problems.

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What are hidden defects in a home?

Hidden defects in a home are serious flaws or problems in a property that are not evident on a superficial inspection or at the time of purchase, that affect the habitability, safety, or value of the property and that existed prior to purchase, but have been concealed or undeclared by the seller.

Some common examples of hidden defects in homes can be structural dampness, cracks in the foundation, defective electrical or plumbing installations, or outstanding debts associated with the property you want to buy.

Difference between apparent and hidden defects

Not all defects found in a house are claimable, so it is essential to know how to differentiate between apparent defects and hidden defects.

Apparent defects are visible flaws that can be noticed during a normal surface inspection, for example, peeling paint. The buyer, being aware of these defects, accepts them when purchasing the property "as is," and therefore, they do not create any legal liability for the seller.

On the other hand, hidden defects are flaws that require an expert technical review to be detected, such as broken pipes inside a wall. In the case of hidden defects, the seller is obliged to compensate if they were not declared, and they can even be grounds to annul the sale or demand financial compensation or a repair according to the problem presented.

For example, if you see a leak in the roof during the visit, this is an apparent defect, since it is evident and you bought the property knowing of its existence, and you will not be able to claim for this problem afterward. However, if after moving into a property you discover a hidden leak in the pipes that causes dampness throughout a wall, this is a hidden defect that could not be detected before the purchase and you will be entitled to file a claim.

You might be interested in: Sanitation due to eviction.

Why it is a common problem in real estate sales and purchases

Some factors that may cause the appearance of hidden defects are the lack of strict regulation, as many sellers do not declare problems in order not to lower the price of the property. It may also be due to insufficient inspections, where buyers save on technical expertise to reduce costs, or due to market pressure, since in areas with high demand, speed tends to be prioritized over detailed review. It is estimated that approximately 30% of legal claims in real estate are related to undeclared hidden defects.

Most frequent types of hidden defects

Structural defects

This type of hidden defects can include, for example, cracks in load-bearing walls or foundations, dampness from seepage in basements or walls, problems in roofs, or even balconies with a serious risk of collapse.

Installation failures

Dangerous electrical wiring, faulty water or gas pipes, or defective heating systems are common hidden defects. In addition, these hidden defects can be very serious and put the people living in the house at risk.

Legal problems

These problems can include outstanding debts such as property tax (IBI), community fees, unpaid mortgages, undeclared works or works without a municipal license, or incorrect boundaries that could constitute land usurpation.

Contamination or infestations

The most common hidden defects in these categories are the presence of toxic mold, such as black mold, or pests, such as termites or woodworm, which are not detectable to the naked eye.

How to detect them?

Before buying, it is a good idea to hire a technical expert such as an architect or engineer who can identify structural problems. You should also check documents such as the energy efficiency certificate, building permits, the latest gas and electricity inspections, and a simple note from the Land Registry to check for debts. Additionally, it is ideal to visit the property under different weather conditions.

After purchase, some common symptoms that may indicate hidden defects are the presence of persistent musty odors, abnormally high utility bills (which may occur due to leaks), or doors or windows not closing properly, which may indicate early structural issues.

Hidden defects in second-hand housing vs. new construction

In second-hand homes, the greatest risk of defects comes from aging, for which the seller is responsible for hidden defects, with a claim period of 6 months from their discovery.

For new construction, hidden defects are covered by a ten-year warranty (10 years for the structure), and the developer must be responsible for construction faults, with a warranty of 1 to 3 years for finishes.

What does the law say?

The Civil Code (Art. 1484) indicates that the seller must compensate if hidden defects were not disclosed.

Legal deadlines for each case

The claim period is 6 months from the discovery of the defect (not from the purchase).

Warranties that must be offered by the seller or developer

Mandatory warranties indicate a period of 10 years for structural damage (in new construction) and 3 years for installations such as plumbing or electricity.

How to Claim Hidden Defects: Step by Step  

Document the problem

For this, photos, technical reports, or witnesses certifying the existence of the problem are needed.

Notify the seller

This must be done in writing, either by certified mail or burofax.

Negotiate a solution

An agreement can be reached for the seller to cover a repair or contribute compensation.

To sue

If an agreement cannot be reached, you may resort to the courts or arbitration.

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What type of compensation can be requested for hidden defects?

You can request a repair for the damage, covering the cost of the necessary works, a reduction in price if you prefer to keep the property as it is, or termination of the contract, which would involve a full refund.

What if the seller knew about the defect?

If the seller knew about the defect and deliberately concealed it, they may be accused of fraud (intentional deception), which allows for claims for moral damages or criminal liability in serious cases.

Can the purchase be canceled due to a hidden defect?

Yes, this can be a justifiable reason, but only if the defect is serious (affecting the safety or habitability of the home) and it can be proven that the defect existed prior to purchase.

Tips for Avoiding Issues with Hidden Vices

Technical review

Never omit it, even if it implies higher costs in money or time

Contract

Make sure the contract includes a “warranty for hidden defects” clause.

Property history

Review the property’s history to stay informed about renovations, maintenance, the problems it has had, and their outcomes.

You might be interested in: Purchase and sale contract.

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Conclusion 

Hidden defects can turn the purchase of a home into a real nightmare. However, with proper prevention, professional advice, and a good knowledge of your rights, it is possible to minimize the risks and protect your investment.

If you suspect that your property has undisclosed defects, you must act quickly, as there is only a 6-month period to file a claim, which is crucial. In more complex cases, a lawyer specialized in real estate law can be your best ally.

But don’t let these risks stop your investment plans. Now that you are well informed, you can avoid these kinds of problems and make excellent real estate investment decisions.

Sergio Navarro

Expert in blockchain, investments and personal finance.

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