Legal Advice on Hidden Defects in Purchase Contracts


Questioner

We bought our house in 2014. The purchase contract stated that the seller had no knowledge of whether there was a tank. A few months ago my husband came across an oil tank when he was digging a hole to the basement where we wanted to make a window. In the meantime we have heard that tanks have been removed in the entire district and that if this is not registered, it could mean that it is still there. The seller says she did not know, because it was already closed and covered by a previous owner 40 years ago. However, she also lived there for 30 years with the associated regulations (oil tank remediation, oil tank removal, oil tank subsidy). However, is it not strange that you do not 'know' if all houses had an oil tank and none are known at your address. What is your advice?

Lawyer

It depends on what is included in the purchase agreement. If the seller has guaranteed that there was no tank, you can hold him liable without further ado. However, if it states (and that is the case if I read the question correctly) that the seller was not aware that there was a tank, then you will have to prove that he was aware of it. Only if you can prove this, can you hold the seller liable. For example, you could ask the municipality whether the seller ever reported the presence of a tank.

Questioner

We can't prove that. We can't point this out as a hidden defect?

Lawyer

no, not if there is no warranty included in the purchase agreement

Questioner

There are many oil tanks removed from the street so I think it is unlikely that she did not suspect anything. Unfortunately for us. Thanks for your response anyway.

Lawyer

You're welcome. Unfortunately, these kinds of issues receive too little attention when drawing up/signing a purchase contract.

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