Lawyer within contract law

Buying a home is the biggest financial decision of most people's lives. When the home turns out to have serious defects that were not disclosed, you can in some cases cancel the entire purchase. But what does canceling a home purchase actually mean, and when are you entitled to do so?

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What does it mean to raise a home purchase?

When a home purchase is cancelled, it means that the purchase agreement is terminated. The home is transferred back to the seller, and you get the purchase price back. The parties should initially be treated as if the purchase had never taken place – you should receive compensation for any enrichment you have caused to the home through renovation work, but deductions for the benefit you have had from the home. However, a cancellation settlement is an intrusive legal action, and strict requirements are therefore imposed for your claim to be successful.

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When can you request to cancel your purchase?

In order to cancel a home purchase, there must be a defect that constitutes a material breach of contract. That is, the defect must be so serious that it constitutes a clear breach of the contract and makes it unreasonable to expect you, the buyer, to be bound by the contract.

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When is a defect considered a material breach of contract?

A specific assessment must be made to determine whether the threshold for "material" has been reached. The assessment emphasizes, among other things, the following points:

• The defect's significance to the buyer : Does the defect have a major impact on the use of the home?
• Financial scope : How much is the shortfall in value, compared to the purchase price?
• Buyer's reasonable expectation : What could you, as a buyer, reasonably expect from the home? This can vary, among other things, depending on whether the property is new or old, has been marketed to a high or low standard, or has cost a lot or little in relative terms.
• Whether a price reduction is an adequate alternative : If a price reduction will restore the financial consequences of the breach of contract, and function as full financial compensation, it will take a lot to demand rescission.

Typical examples of defects that may provide grounds for an increase include extensive moisture and rot damage, illegal construction or construction defects that significantly shorten the life of the home.

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How are you progressing?

If you are considering raising your home purchase, it is important to act quickly and document everything. Follow these steps:

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1. Complain in writing : Notify the seller as soon as you discover the defect. This must be done within a reasonable time – normally within 2–3 months. If you wish to cancel, you must notify this within the same period. This is not necessary if you are only requesting a price reduction or compensation .

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2. Document the defects thoroughly : Use professionals, such as appraisers or building consultants, to document the damage. Photos, reports, and emails can be important evidence .

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3. Seek legal assistance : Revocation is a demanding process. An attorney experienced in property disputes can assess whether the conditions are met and represent you, if necessary in court. The earlier the attorney is involved, the better advice you will be able to get to navigate the case.

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Do you need legal assistance?

Canceling a home purchase is possible, but only when there is a defect that constitutes a material breach of contract that makes it unreasonable to expect you to abide by the agreement. If you are unsure of your rights, it may be a good idea to contact a lawyer with experience in home purchases .

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When purchasing expensive items such as a car, boat, electronics or furniture, errors and defects can quickly lead to major financial losses. If you experience problems that are not resolved, or if you encounter resistance from the seller, you should keep these things in mind.

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When does the Consumer Purchase Act apply?

The Consumer Purchase Act applies when you, as a private individual, buy a product from a trader – either in a store or online. The law applies regardless of whether the product is new or used, and whether it was purchased in Norway or from a Norwegian online store. However, it does not apply to purchases between two private individuals; in that case, the Purchase Act applies, and you do not have as strong a protection

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What is considered a deficiency?

A product has a defect when it does not correspond to what you were told, either in terms of properties, function or quality. It can also be a matter of incorrect marketing or missing information. The Consumer Purchase Act sets clear requirements for what you as a buyer can expect, and gives you protection against such defects.

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What can you claim?

If the item you have purchased turns out to be defective, you have rights that are often worth exercising. In the first instance, the seller has the right to attempt to correct the defect (section 29 of the Norwegian Consumer Code). If this is not possible, you can:

• have the item exchanged for a new one (redelivery)
• demand a price reduction (fkjl. §31)
• cancel the purchase if the defect is significant (fkjl. § 32)
• claim compensation for financial loss (FKJL § 33)

Cancellation is primarily applicable if rectification or replacement is not successful. Cancellation can therefore be referred to as a secondary breach of contract effect. If the seller proves that the defect is insignificant, the consumer cannot demand cancellation. Typical examples of when cancellation may be applicable are extensive engine problems on a newly purchased car, or repeated defects that make it unreasonable to wait for several repair attempts.

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Complaints – deadlines and documentation

To make a claim, you must file a complaint within a reasonable time – normally no later than two months after you discovered the defect. The absolute complaint period is two years, but for goods that are intended to last longer, such as white goods, electronics or vehicles, it can be up to five years.

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The complaint should always be in writing and contain a clear description of the defect and what claim you are making. It is not a requirement by law that the complaint be in writing, but you can more easily prove that it was sent within a reasonable time if you have written proof. Feel free to attach pictures, receipts and any documentation from professionals.

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Do you need legal assistance?

Many people are not aware that the legal aid coverage in your home insurance can often cover a large part of your legal fees. The lawyer can help you assess whether there is a legal defect, advise you on further steps and file a claim against the seller. This is particularly useful if you want to cancel the purchase or claim compensation.

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If you are unsure whether you have a case, or need help filing a complaint, contact us for a free meeting.

Hiring a tradesman for renovation or maintenance can save you time. But what do you do when the result doesn't live up to your expectations, whether it's delays, poorly executed work, or disagreements about completion? In this guide, we try to give you an overview of your rights and how to best proceed if your tradesman doesn't deliver as agreed.

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Your rights as a consumer

The relationship between you as a consumer and the craftsman is regulated by the Craftsman Services Act . The law is designed to protect you and is intended to ensure, among other things:

• Professional execution and deadlines: The work must be done professionally and within the agreed time. If the craftsman is late, you have various rights that you can assert.
• Clear information: You should receive clear and sufficient information about everything from the scope of the work to costs. The craftsman's obligation to you is referred to as a duty of care (Article 5 of the Code of Civil Procedure), and the craftsman even has a duty to discourage you from entering into the agreement if the service will not be of reasonable benefit to you (Article 7 of the Code of Civil Procedure).
• Compensation for defects: In the event of defects, you are entitled to correction, a price reduction, or in serious cases – to terminate the agreement with the craftsman.

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What do you do if you have poor work or deficiencies?

If you discover errors, deficiencies, or that the craftsman has performed poor work, quick and systematic action is crucial:

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1. Document everything

Gather evidence. Take detailed photos and videos of the errors, and note when you discovered them. Keep all relevant documentation such as contracts, quotes, invoices and written communications (email, SMS). Good documentation can strengthen your case, and make it easier to be heard that you have the right on your side.

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2. Contact the craftsman in writing

Send a clear and written complaint as soon as possible. Describe exactly what you are dissatisfied with and what errors you have found. Set a reasonable deadline for correction or completion. Good communication early on can resolve many disputes. This is referred to as a complaint, and is crucial for you to keep your claim intact and be able to pursue it further if you cannot reach an agreement.

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3. Know your requirements

If the craftsman does not follow up, the Craftsman Services Act gives you several options:

• Withhold payment: You can withhold an amount that corresponds to the cost of correcting the defect (in accordance with Section 23). This is an effective means of pressure, but be careful to document why you are doing it. You should also not withhold a larger amount than is necessary to secure your claim. If only a small part of the agreement remains, you cannot withhold the entire amount without risking having to pay late payment interest on the rest of the purchase price.
• Claim for correction: The craftsman has both the right and the obligation to correct the error, at no extra cost to you. The correction must be made within a reasonable time and without causing you significant inconvenience (section 24 of the Act).
• Price reduction: If correction is not made, you can demand a price reduction corresponding to the reduction in value caused by the defect, or what it costs to have it corrected by others (section 25).
• Termination of the contract: In serious cases, where the defect is significant, you can terminate the contract with the craftsman. This means that the contract is cancelled, and you can demand a refund for what you have paid (minus any compensation for usable parts of the work) (Article 26 of the Danish Labour Code).
• Compensation: If you have suffered a direct financial loss as a result of the craftsman's error or delay, you can claim compensation. This may include expenses for a new craftsman or alternative housing (section 28).

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What if you can't agree? Seek professional help

If you cannot reach an agreement, you can contact the Consumer Council, the Consumer Authority or the Conciliation Council. If you have legal aid insurance through your home or contents insurance, it can often cover part of the legal fees.

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When should you contact a lawyer?

If the case is complex, the claim is large, or you feel unsure about the way forward, it may be a good idea to contact a lawyer. We can assist with:

• Assess the matter objectively.
• Formulate legally correct requirements.
• Negotiate on your behalf.
• Represent you in a dispute.

If you are unsure whether you have a case, or need help filing a complaint, contact us for a free meeting.

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