Hidden defects after buying property in Estonia: your rights against the seller

By Ero Liivik, lawyer (jurist) at Erovik Law Office · Updated 2 November 2026

For hidden defects, Estonian law makes the seller liable if the defect already existed when the property was handed over, even if it appears later, unless you knew or should have known about it when you signed. You must notify the seller within a reasonable time after you discover the defect or should have discovered it, and most claims become time-barred three years after handover, so act early and keep evidence.

Key points

• The seller is liable for a lack of conformity that existed at handover, even if it appears later (Law of Obligations Act (VÕS) §§ 214(2), 218(1)).
• The seller is not liable for defects you knew or should have known about when signing (VÕS § 218(4)).
• For real estate there is no fixed notice period: notify within a reasonable time (VÕS § 220(1)).
• “Sold as is” does not protect a seller who knew or should have known of the defect and kept quiet (VÕS § 221(2)).
• Remedies are repair, price reduction, damages and, for a material defect, withdrawal (VÕS §§ 222–225).
• Claims generally expire three years after handover, later for building defects and intentional breaches (General Part of the Civil Code Act (TsÜS) § 146).

What counts as a defect

The Law of Obligations Act does not use the phrase “hidden defect” (varjatud puudus); it speaks of a lack of conformity with the contract (lepingutingimustele mittevastavus). Under VÕS § 217(2) this includes property that:

• lacks agreed characteristics, for example a renovated roof or a connection to the public sewer;
• is not fit for its normal purpose, or for a special purpose the seller knew or should have known about where you could reasonably rely on the seller’s expertise;
• cannot be used because of legal rules the seller knew or should have known about, for example where part of the building was built without the required permits;
• is subject to a third party’s right, including an invalid right entered in the land register (VÕS § 217(4)).

“Hidden” in practice means that you did not know, and should not have known, about the defect when you signed; a defect obvious on a normal viewing, or disclosed by the seller, usually gives no claim (VÕS § 218(4)). Before the sale, the seller must give true information and disclose circumstances in which you have a recognisable essential interest (VÕS § 14).

When the seller is liable

The seller is liable for defects that exist when the risk passes, which is normally on handover (VÕS §§ 214(2), 218(1)), so what matters is the condition at handover, not at the land register entry. If you bought a building or apartment from a business as a consumer, a defect appearing within two years of handover is presumed to have existed at handover, unless this is incompatible with the nature of the building or the defect; the contract cannot exclude this to your detriment (VÕS § 218(2¹)). Otherwise you must prove that the defect already existed, so an expert’s view on its cause and age matters. A buyer acting in business must inspect the property promptly and describe the defect precisely (VÕS §§ 219(1), 220(2)).

“Sold as is” clauses and concealed defects

A contract may say the property is sold “as is” or limit the seller’s liability (VÕS § 106(1)). Such a clause is void for intentional breach or where it otherwise unreasonably excludes or limits liability (VÕS § 106(2)). The seller cannot rely on it if they knew or should have known of the defect and did not tell you (VÕS § 221(2)), and an agreed shorter time limit does not apply to an intentional breach (TsÜS § 145(1)).

Hiding a defect can also be fraud (pettus), which includes keeping quiet about facts that good faith required the seller to disclose (TsÜS § 94). You can then avoid the contract within six months of discovering the fraud, but no later than three years after the contract was made, and claim compensation (TsÜS §§ 99, 101).

Notify the seller in time

Notify the seller within a reasonable time after you discovered the defect or should have discovered it (VÕS § 220(1)). The two-month period you may read about applies only to consumer sales of movable goods (VÕS §§ 208(4), 220(1)). A late notice means you cannot rely on the defect, although an excusable delay still allows a price reduction or damages other than lost profit (VÕS § 220(3)). The timing of your notice does not matter if the defect arose from the seller’s intent or gross negligence, or if the seller knew or should have known of it and kept quiet (VÕS § 221(1)); the time limits below still apply.

Ask for repair in the notice or within a reasonable time after it, or you may lose that right (VÕS § 222(6)). The law sets no form for the notice, but put it in writing: describe the defect and when you found it, attach photos and set a reasonable deadline (VÕS § 114).

Your remedies

Remedy	When and how	Law
Repair	Within a reasonable time after your notice, at the seller’s cost. If the seller fails to repair, you can have it done and claim the reasonable costs.	VÕS § 222(1), (4), (4²), (5)
Price reduction	If the seller does not repair, refuses, the repair fails, or the defect justifies immediate withdrawal. The price is reduced in proportion to the lower value, by a declaration to the seller.	VÕS §§ 112, 223(1), 224
Damages	Alone or with other remedies, unless the breach is excusable (force majeure). Covers losses foreseeable when the contract was made (all losses for intent or gross negligence), including damage the defect caused to the property.	VÕS §§ 101(2), 103, 115, 127(3), 225
Withdrawal	Only for a material defect, usually after the seller fails or refuses to repair, and declared within a reasonable time. Both sides return what they received, so the property is transferred back through a notary.	VÕS §§ 118, 189, 223(1), (4)–(5); Law of Property Act (AÕS) § 64¹

Time limits

• Three years from handover (TsÜS § 146(1); VÕS § 227(1)). If the seller repairs the defect, the period restarts for that defect.
• Building defects: a claim against the seller does not expire before five years after the building was completed (TsÜS § 146(2)), which mainly helps buyers of new property.
• Ten years if the seller breached the contract intentionally (TsÜS § 146(4)).

Negotiations, an additional deadline you set the seller and an expert assessment agreed by both sides suspend the period, as does a court claim, and the seller’s acknowledgement restarts it (TsÜS §§ 158, 160, 167). When a suspension ends, the claim does not expire for at least two months (TsÜS § 168(2)).

Evidence

Keep dated photos and videos, moisture readings, the contract and listing, the seller’s messages before the sale, the handover report, repair invoices and, for an apartment, the association’s records. An expert opinion on the cause, likely age and repair cost of the defect is usually central. Let the seller see the defect before repairs unless the damage is urgent. A court can order an expert assessment of the condition, the cause of the defect and the repair cost before any lawsuit, in pre-trial evidence proceedings (eeltõendamismenetlus), where this would help avoid a court dispute (Code of Civil Procedure (TsMS) § 244(3)–(4)). Applying suspends the limitation period (TsÜS § 160(2)).

Defects in construction or renovation work

If you hired a builder, your claim is under a contract for work (töövõtuleping), with similar rules. The contractor is liable for defects existing when the risk passes, normally on completion or acceptance (VÕS §§ 640(2), 642(1)). For building work done by a business for a consumer, a defect appearing within two years of handover is presumed to have existed then, unless this is incompatible with the nature of the work or the defect (VÕS § 642(2¹)). Notify within a reasonable time and ask for repair (VÕS §§ 644, 646(6)). If the contractor does not repair within a reasonable time, you can have the work repaired and claim reasonable costs (VÕS § 646(5)); if repair is impossible, fails, is refused or is not done within a reasonable time after your notice, you can withdraw without setting a further deadline (VÕS § 647(1), (3)). You cannot reduce the price if the contractor fixed the defect or you unjustifiably refused its offer to fix it (VÕS § 648). Claims for building defects under a work contract expire five years after completion or acceptance, or ten years after it for an intentional breach (TsÜS § 146(2), (4); VÕS § 651(1)).

Typical problems and mistakes

• Moisture and mould behind fresh paint or panels: did the cause exist at handover, and did the seller know?
• Roof and structures in an apartment building are common property, so repairs are decided and paid through the apartment association (Apartment Ownership and Apartment Associations Act (KrtS) §§ 4, 34, 40). You may still have a claim against a seller who knew and kept quiet.
• Sewage and drainage not working as described.
• Unauthorised works, such as an extension or attic conversion without the required permits.
• Mistakes: repairing before the seller or an expert has seen the defect, notifying only by phone, waiting months, and signing an “as is” contract without asking what the seller knows.

Frequently asked questions

How long do I have to claim for hidden defects in Estonia?

Notify the seller within a reasonable time after discovering the defect. The claim generally expires three years after handover, or later for building defects and intentional breaches (TsÜS § 146).

Does “sold as is” mean I cannot claim?

Not if the seller knew or should have known about the defect and did not tell you (VÕS § 221(2)). It may, however, limit your claims against a seller who neither knew nor should have known, unless the clause is unreasonable (VÕS § 106(2)).

Can I cancel the purchase because of a hidden defect?

Only for a material defect, usually after the seller has failed or refused to repair, and you must declare withdrawal within a reasonable time after you learn of it (VÕS §§ 118, 223). Both sides then return what they received (VÕS § 189). For lesser defects, consider a price reduction or damages.

How Erovik Law Office can help

Real estate disputes, including hidden defects, construction and renovation defects and breaches of sale contracts, are one of our practice areas, and real estate litigation is where the office has particularly strong and consistent experience. Our lawyer (jurist) Ero Liivik can assess your contract and evidence in an initial written analysis and action plan (EUR 120–180), prepare the notice or demand letter to the seller or contractor (EUR 120–200) and, if needed, a statement of claim (from EUR 300) for court proceedings. He will tell you honestly if a claim is weak or a settlement makes more sense. Prices are final, with no VAT added; expert, translation and state fees are extra. See real estate disputes, our fees and the contact page; we usually reply within one working day. Still buying? Read buying property in Estonia first.

This guide reflects Estonian law in force on 1 November 2026. It is general information, not legal advice for your situation.