Hidden defects in a newly purchased apartment:
who is liable?
Your co-pilot in real estate law
Mag. Nevena Shotekova-Zöchling
Attorney in Vienna · 16 years of legal practice · Real estate law & purchase contracts
You keep the controls and make the decisions. We sit next to you in the cockpit, know the route and the instruments – and when it gets turbulent, we take over.
After moving in, damp appears behind the wardrobe, the heating fails or the bathroom leaks. Whether the seller is liable depends above all on the purchase contract.
Statutory warranty
The seller is liable for the apartment having the agreed or ordinarily expected properties. Defects that existed at handover entitle the buyer to repair, a price reduction or – for material defects – rescission of the contract. For immovable property the deadline is three years from handover.
The usual warranty exclusion
When second-hand apartments are bought from private sellers, the warranty is usually excluded (“bought as seen”). This is permitted – but it has limits:
- Fraudulently concealed defects are not covered. A seller who paints over known water damage is still liable.
- Promised properties – such as “roof renovated in 2022” or “no damp” – must be honoured by the seller.
- If a consumer buys from a business (e.g. a developer), the warranty cannot be validly excluded.
New builds: developers and the BTVG
When buying from a developer, the full warranty applies; the Austrian Property Developer Act (BTVG) additionally provides for a retention amount. Defects should be recorded precisely at handover and notified in writing.
Common parts: the owners’ association
If the defect concerns the roof, façade, risers or staircase, the owners’ association is usually responsible – via the property manager and the reserve fund. Check minutes and planned renovations before you buy.
What you should do now
Frequently asked questions
How long can I assert defects?
Warranty claims for real estate: three years from handover. Longer periods apply in cases of fraudulent deception.
Does the warranty exclusion in the contract always protect me as a seller?
No. You remain liable for fraudulently concealed defects and promised properties.
Who pays for the expert report?
Initially whoever commissions it. If the claim is justified, the costs can often be recovered from the seller.
Mag. Nevena Shotekova-Zöchling, attorney and insolvency administrator in Vienna. As of October 2026. General information – not legal advice for your individual case.
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