A damp wall that shows up after the first winter. A roof that "never leaked" until the June downpour. Most disputes between seller and buyer don't start with fraud — they start with the property's condition being discussed too little, evasively, or not at all before the sale.
This article covers what a hidden defect means under Czech law, what the seller is liable for and why honesty up front is the cheapest insurance there is. I'm writing it as an estate agent, not a lawyer — and where my patch ends, I'll say so honestly.
What a hidden defect is (and isn't)
A hidden defect is a defect the property already had at handover but which couldn't be spotted during an ordinary viewing — it shows up only with time or under certain conditions. Typically damp under fresh paint, a cracked drain under the floor, structural problems hidden behind plasterboard, failed waterproofing.
An obvious defect is the opposite: something an attentive buyer could notice at a viewing — a visible crack in the wall, worn-out windows, old surface-run wiring. For defects the buyer must have seen with ordinary attention — or knew about — the seller is generally not liable.
And a third category people forget: a defect disclosed in the contract. Whatever is described in the contract, the buyer knowingly buys the property with — and it's hard to build a later dispute on a disclosed defect. That's exactly why the contractual description of the condition matters so much; I'll get to it in a moment.
How long the seller stays liable for hidden defects
For buildings there's a period that regularly surprises sellers: a buyer can raise a hidden defect in a building for up to five years from acquisition. At the same time, they must report it without undue delay after discovering it (or after they could have) — sitting on a damp wall "for later" doesn't pay for the buyer either.
Two things follow from that:
- For the seller: the worry doesn't end with the sale. Five years is a long time, and "it's already sold" is no defence.
- For the buyer: the period isn't a blank cheque. Report defects immediately, in writing, with documentation — a late report can cost you your claims.
And if the seller knew about a defect and concealed it, their position in court gets even worse: they can't rely on time limits and objections in that case. A concealed defect is simply the most expensive option.
What the buyer can claim
Depending on how serious the defect is, the options are repair of the defect, a reasonable discount on the purchase price, and — for defects amounting to a fundamental breach of contract — withdrawal from the contract. In practice the vast majority of cases end in a discount; unwinding the sale of a house a new family has lived in for a year is a last resort even for the courts.
A practical note from the sales I handle: almost every defect dispute I've seen could have been resolved for a fraction of the cost if both sides had talked earlier and had the condition described on paper.
An "as is" clause ("the buyer purchases the property as it stands") doesn't work the way sellers imagine. For a specific, individually identified property, Czech courts don't treat it as an effective exclusion of liability — and no clause cures a defect the seller knew about and concealed. If someone tells you "we'll put in an as-is clause and you're safe", they're advising you badly.
The cheapest insurance: disclose the condition honestly, up front
Now the main point — and it's also how I run my sales. Liability for hidden defects can't be dodged with a clever sentence in the contract. But the risk of a dispute can be cut dramatically by making sure the buyer knows what they're buying:
- Write the known defects into the contract. Damp cellar? Boiler past its prime? Write it down. A disclosed defect stops being hidden — and a buyer who knew about it won't build a claim on it. One honest bullet point in the contract is cheaper than a year of letters between lawyers.
- Consider a professional property inspection. An inspector goes through the house before the sale and records its condition. For the seller it's evidence of what was in what state at handover; for the buyer, certainty. On older houses, the few thousand crowns pay off for both sides.
- Do a proper handover protocol. Meter readings, photos of the rooms, a list of known snags, the date. A boring document that decides the case if a dispute ever comes.
- Keep the paperwork. Inspection reports, repair invoices, the plans for the extension. "The roof was done by a firm in 2021 — here's the invoice and the warranty" is a sentence that puts a dispute out before it starts.
Honesty also pays commercially. A buyer you tell straight away that the cellar gets damp in spring will trust you for the rest of the negotiation — and an offer from someone who knows what they're buying holds. An offer from someone who discovers defects after signing the reservation falls apart, gets renegotiated and ends with bad blood on both sides. You don't lose money by being honest; you lose it in a dispute.
Buying? Three things before you sign
The same logic works in reverse for buyers:
- Ask in writing and be specific. Has it ever leaked? When was the wiring done? Is there a cellar, and what about damp? A seller's written answer carries weight — and an evasive answer is an answer too.
- Bring your own expert to the viewing — on older houses, ideally a property inspector. An hour with a builder reveals more than three viewings with an agency.
- Check the paperwork, not just the walls. What's in the land registry, what's in the building documentation and what actually stands on the plot should all match up.
Where the agent ends and the lawyer begins
An honest line to close on: I'm not a lawyer and this article isn't legal advice. As an agent I can make sure the property's condition is discussed truthfully and that it's all on paper — defects described in the contract, an inspection, protocols, documentation. Once a hidden-defect dispute is actually running, it belongs in a lawyer's hands; get one who handles these disputes, and see them before you answer the first sharp letter.
The best dispute, though, is still the one that never happens. And that one is won before the sale, not after it.