Buying and sale

Have you bought a house with defects and want to make a claim against the seller? Buying a home is one of the most important investments most of us will ever make. That's why it's crucial that the property meets our expectations and is in the condition we expect.

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If you as a buyer discover defects in the property after the purchase, it may be a good idea to contact a lawyer for guidance in the claims process. If you have home contents insurance, it will probably cover the cost of a lawyer up to NOK 100,000. 100 000. As a rule, the policyholder only has to pay a deductible of between NOK 2,000-5,000, plus 20 percent of the expenses incurred in excess of the deductible. In other words, the insurance company covers the lion's share of the legal expenses. The threshold for contacting a lawyer should therefore not be high, especially if you fear high legal costs.

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Example: if the total legal costs are NOK 60,000 and the deductible is NOK 2,000, in addition to the NOK 2,000, you must pay 20% of NOK 58,000 (NOK 60,000 - NOK 2,000). In this case, you must therefore pay a total of NOK 13,600 yourself. In other words: your home contents insurance will potentially cover a large part of your legal expenses.

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The insurance company may also cover expenses in connection with the preparation of a valuation report or expert report.

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The insurance contract regulates the conditions that must be met in order to obtain legal aid coverage through the home contents insurance. As a general rule, legal aid is granted from the time a dispute arises. A dispute arises if you submit a claim and the other party refuses, i.e. at the time the disagreement arises. A lack of response from the other party (inaction) may also mean that a dispute exists under insurance law.

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ATTENTION: The insurance contract must have been concluded before the dispute arises. If the insurance was taken out after the dispute arose, the insurance will probably refuse legal aid coverage.

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It is also good to know that the insurance generally does not cover expenses greater than the financial interest in the case.

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If you have questions or need help with your case, book a free consultation with us here.

Discovering faults or defects in your home after taking possession can be frustrating. Fortunately, Norwegian law gives you as a buyer certain rights. Here is a guide on what to do if you discover faults after taking possession.

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1. Identify if a deficiency exists

A defect exists if the home does not comply with what was agreed upon, or if it is in a worse condition than you could reasonably expect based on the purchase price and other circumstances. This may include hidden defects that were not visible at the time of purchase, or deviations from information provided by the seller.

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2. Advertise within a reasonable time

When you discover a defect, it is important to complain to the seller as soon as possible. According to the Disposal Act, this must be done within a “reasonable time” after you discovered or should have discovered the defect. In practice, this is often interpreted as within three months. The absolute complaint deadline is five years from the date of takeover.

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3. Document the deficiency

To strengthen your case, you should:

• Take photos or video: Visual evidence of the error.
• Obtain a written report: Hire an appraiser or professional to assess and document the defect.

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4. Send a written complaint to the seller

In the complaint you should:

• Describe the defect in detail: Explain what is wrong and why you believe it constitutes a defect.
• Attach documentation: Include photos and reports.
• Make your claim: For example, a price reduction, compensation or cancellation of the purchase.

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5. Give the seller the opportunity to correct the situation

The seller usually has the right to attempt to remedy the defect. If the seller is unwilling or unable to remedy the defect within a reasonable time, you may be entitled to a price reduction or, in serious cases, cancellation of the purchase.

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6. Consider professional assistance

If you cannot reach an agreement with the seller, it may be a good idea to contact a lawyer with experience in buying and selling homes . Many home insurance policies cover part of the legal fees in such cases.

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7. Be aware of the statute of limitations and inaction

Even if you have filed a complaint within the deadline, your claim may be time-barred. The limitation period is normally three years from the date of receipt, but may be extended if the defect is discovered later. To interrupt the limitation period, you must bring the matter before the courts or a relevant appeals body.

You must also make sure that your claim is not lost as a result of inaction.

Discovering errors after taking over is unfortunate, but by following these steps you can protect your rights and increase the chance of a satisfactory resolution. Contact one of our lawyers for assistance.

Selling a car privately usually goes well, but in some cases disagreements can arise afterwards. It happens that the buyer contacts the seller weeks or months after handover with demands for a price reduction, repairs, compensation or, in the worst case, cancellation of the purchase – often on the basis of alleged errors or defects. Such situations can be experienced as both unpleasant and confusing, especially when one believes that one has acted in good faith. Nevertheless, it is important to take such claims seriously and handle them in the right way.

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What does a claim mean?

A claim for a warranty means that the buyer claims that the car is not as agreed, or that it has a defect or defect. The seriousness of the defect is decisive for what rights the buyer has. In sales between private individuals, this is regulated by the Norwegian Sales Act. The law stipulates, among other things, that the goods must be in accordance with what has been agreed and what the buyer could reasonably expect, based on the car's age, price, mileage and general condition.

An important point is the "sold as is" clause, which is often used in private car purchases. Even with such a clause, the seller can still be held liable if:

• Incorrect information has been provided that has affected the purchase.
• Significant information known to the seller about whether the car has been impounded.
• The car is in significantly worse condition than the buyer had reason to expect based on the price and other conditions.

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When can the purchase be cancelled?

Cancellation of a car purchase is the most drastic consequence of a claim for damages. This means that the purchase agreement is cancelled, the buyer returns the car, and the seller refunds the purchase price. In order for a car purchase between private individuals to be cancelled, the defect must be "material". This is a high threshold and requires that the defect is of such a nature that it significantly affects the usability or value of the car, and that it cannot be repaired without disproportionate costs or inconvenience. Examples include serious engine defects, incorrect information about significant damage, or manipulated mileage.

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Your rights as a seller

As a seller, you also have rights. First and foremost, you are entitled to receive a specified and justified claim from the buyer. You also often have the right to try to remedy the defect yourself, if you accept that there is a fault. It is important not to acknowledge a claim without having considered the matter thoroughly. Many claims are undocumented or unreasonable, and it is entirely possible to reject them if they have no legal basis.

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When should you contact a lawyer?

If the claim is large, unclear, or the buyer is difficult to work with, you should seek legal advice. A lawyer can assess the case objectively and help you respond legally.

Many ordinary car insurance policies also include legal aid coverage that can cover a large portion of legal fees in disputes. The prerequisite is that the car was insured at the time of sale, and that there is a genuine dispute where the buyer has made a claim that you have disputed.

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Would you like help and guidance with your case? Contact our automotive lawyers for a no-obligation chat.

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