Hidden Defects After Buying Property in Croatia: Buyer Rights, Deadlines and Compensation

Have you discovered damp after the first heavy rainfall in your new apartment? Have cracks, roof leaks or faulty installations appeared after you moved into a house, even though they were not visible during viewings? Hidden property defects in Croatia may give you a claim against the seller, but your rights depend on the cause of the problem, the purchase agreement, the evidence and whether you act in time.

Under the Croatian Civil Obligations Act, a seller can generally be liable even if they did not know about a defect, provided it existed at the legally relevant time or resulted from an earlier cause. Buyers should document the problem and notify the seller promptly. The usual notification deadline for a hidden defect is two months from discovery; commercial contracts require notification without delay. This is not the only deadline to check.

This guide explains hidden defects in apartments and houses, when buyers may seek repairs, a price reduction, termination of the purchase agreement or compensation, and how to preserve evidence. It is written for English-speaking owners of Croatian property, including buyers from the UK, Ireland, the United States, Canada and Australia. The legal rules discussed are Croatian. Terms such as “hidden defects” and “latent defects” describe the Croatian legal framework; they do not import the rules of another country. The applicable legislation must also be checked against the date of your contract.

What counts as a hidden or latent property defect in Croatia?

A hidden defect is a defect that could not have been detected through an ordinary inspection when the property was handed over and becomes apparent later. It is not enough that the buyer personally failed to notice the problem. The relevant questions include whether an ordinary inspection could have revealed it and whether the property falls short of its agreed characteristics or the characteristics that the law allows the buyer to expect.

Depending on the expert findings and the circumstances of the purchase, examples may include:

• water ingress caused by pre-existing defective waterproofing;
• roof or terrace leaks that become apparent only during rainfall;
• concealed defects in plumbing, drainage or electrical installations;
• cracks associated with a structural defect;
• long-standing damp concealed beneath new finishes or fresh paint;
• defective workmanship that prevents the property from having its agreed characteristics.

Damp or cracking does not automatically establish a hidden defect for which the seller is liable. The cause might be an earlier construction fault, but it could also be subsequent damage, work carried out by someone else or the way the property is used. With a resale property, a defect must be distinguished from wear and tear that could reasonably be expected in view of its age and agreed condition.

Is the seller liable if they did not know about the defect?

Article 400 of the Croatian Civil Obligations Act, known in Croatian as the Zakon o obveznim odnosima or ZOO, establishes the seller’s liability for material defects existing when risk passes to the buyer, regardless of the seller’s knowledge. It also covers defects that appear later if they result from a cause that existed earlier. In a property purchase, the transfer of possession, the handover report and the contractual handover provisions therefore need to be reviewed.

A buyer does not necessarily have to prove deliberate fraud to bring a basic defect claim. However, the seller’s knowledge can become decisive if the seller relies on late notification, the expiry of certain periods or a contractual exclusion of liability.

The evidential presumption in Article 400 must also be considered. Under the rules introduced for contracts concluded from 1 January 2022, a defect that appears within one year after risk passes to the buyer is presumed to have existed at that time, unless the seller proves otherwise or the nature of the property or defect is inconsistent with that presumption. For commercial contracts, the period is six months. This presumption does not remove the need to establish that a defect actually exists.

In this guide, “commercial contract” refers to the Croatian statutory category of contracts between traders in connection with their business activities. A private individual buying a home from a developer should not automatically be treated as a party to such a commercial contract merely because the seller is a business.

What are the deadlines for reporting hidden property defects?

Three separate issues must be checked: the deadline for notifying the seller, the period within which the defect must appear, and the deadline for enforcing the resulting rights. Saying that a buyer simply “has two years to complain” can be misleading.

Basic time limits under Articles 404 and 422 of the ZOO, subject to statutory and contractual exceptions

Issue	Basic rule	Starting point
Notifying the seller of a hidden defect	Two months; without delay for a commercial contract	Discovery of the defect
Appearance of a defect for which the seller is liable	Two years; six months for a commercial contract	Handover of the property
Enforcing rights after timely notification	The rights generally expire after two years	Dispatch of the notification to the seller

For used property, the parties may agree on a one-year liability period; for commercial contracts, an even shorter period may be agreed. The law also permits extensions of the relevant periods. The purchase agreement for a resale house must therefore be reviewed before reaching a conclusion about the duration of liability.

Where the seller knew about the defect, or could not have been unaware of it, Article 407 provides exceptions protecting the buyer in relation to inspection, notification and when the defect appears. This does not mean that all rights last indefinitely. Article 422 separately governs the expiry of rights, including an exception where the seller’s fraud prevented the buyer from exercising them.

Do not assume that negotiations or another demand letter automatically preserve the time available to pursue a claim in court. Record the relevant dates and obtain advice on whether proceedings need to be started.

What if the seller has already attempted a repair?

Article 405 contains special rules on time limits following repair or replacement. The amendments published in Official Gazette NN 69/2026 introduced a one-off extension of the liability periods after repair by twelve months, or six months for a commercial contract. This new rule does not apply to contracts concluded before 31 July 2026. Calculating the relevant period requires checking the contract date, the completion and scope of the repairs, and the applicable version of the legislation.

What remedies are available to a buyer?

The ZOO provides for removal of the defect, delivery of a replacement free from defects, a proportionate price reduction and termination of the contract, together with compensation where the legal requirements are met. These remedies are not unconditionally available in any order. Replacing a particular house or apartment with another property may be impracticable, so repairs and the conditions for other remedies need to be assessed.

Repairing the defect

The buyer may request that the seller remedy a defect for which the seller is liable. Repairs must be carried out without cost to the buyer, within a reasonable time and without significant inconvenience, taking account of the nature and intended use of the property. It is sensible to agree in writing on the scope of work, the contractor, access, completion and how the success of the repairs will be checked.

Reducing the purchase price

A price reduction may be available under the conditions in Article 410, for example where the seller refuses or fails to remedy the defect, or where the defect is sufficiently serious to justify an immediate reduction. Under Article 420, the reduction is based on the relationship between the property’s value without the defect and its value with the defect at the time the contract was concluded. It is therefore not necessarily equal to the repair bill.

Terminating the property purchase agreement

Not every problem justifies termination. A buyer cannot terminate for a minor defect, although other remedies may remain available. As a general rule, the seller must be given an additional appropriate period to perform, subject to statutory exceptions, such as a refusal to perform or a sufficiently serious defect justifying immediate termination.

For real estate, the consequences also include repayment of the price, return of possession, land registry entries, any mortgage financing and related issues. Before sending a termination notice, the legal basis, evidence and requested remedy must be aligned. Articles 410–419 of the ZOO are particularly relevant.

Compensation for hidden defects in a Croatian house or apartment

In addition to remedies for defects, a buyer may claim damages where the statutory requirements are satisfied. The loss, its amount and its causal connection with the defect must be established. Depending on the circumstances, a claim may include damaged furniture, necessary temporary accommodation costs or other justified expenditure.

Costs of repairs commissioned independently by the buyer require particular assessment. Relevant questions include whether the seller had an opportunity to remedy the problem, whether the work was urgent and whether the cost was reasonable. Reimbursement of every invoice cannot be promised in advance, and the same loss cannot be recovered twice through different remedies.

A claim for lost rental income requires specific evidence and examination of all the relevant conditions for liability. An intended advertised nightly rate alone does not establish the amount of recoverable loss.

Does a “sold as seen” or “as is” clause protect the seller?

The Croatian wording viđeno – kupljeno is often described in English as “sold as seen” or “as is”. Its effect depends on the wording of the agreement, the circumstances in which it was concluded and the parties’ legal status. A statement confirming that the buyer viewed the apartment does not, by itself, settle whether liability for every hidden defect has validly been excluded.

Article 408 allows contractual limitations or exclusions of liability, subject to exceptions. An exclusion is void if the seller knew of the defect but did not inform the buyer. In a consumer contract, advance terms limiting or excluding liability before the consumer reports the defect are not binding on the consumer.

It is therefore important to distinguish a purchase from a private owner from a purchase from a person selling in the course of their business. A freshly painted wall does not itself prove fraud. However, together with earlier reports of leaks, previous repairs and correspondence, it may be relevant evidence.

New-build defects and Croatia’s ten-year construction liability

Ten-year liability does not automatically cover every defect in an apartment. Article 633 of the ZOO establishes special liability for defects affecting the essential requirements for a building prescribed by law. The contractor is liable if such defects appear within ten years after handover and acceptance of the works. The designer and the person responsible for construction supervision are liable under the statutory conditions relating to their respective failings.

This liability can also protect a subsequent owner of the building and cannot be excluded or limited by contract. The ten-year period does not automatically restart when an apartment is purchased from a previous owner.

Article 634 requires notification to the contractor, designer or construction supervisor within six months of identifying the defect. For rights against the contractor or designer, it also provides a one-year period from notification. Owners should not wait until the end of the ten-year period to bring proceedings.

The seller, developer and contractor may be different persons. Claims against the seller under the purchase agreement must be distinguished from claims against those involved in construction. Notice to one person should not be assumed to be sufficient notice to all potentially liable parties. For more on the contractual framework, see our guide to construction contracts in Croatia.

What should you do after discovering damp, leaks or cracks?

1. Record the date and condition. Take photographs and videos, identify the affected rooms and retain the original files.
2. Collect the documents. Keep the purchase agreement, listing, correspondence, handover report, invoices and any available information about earlier work.
3. Notify the seller promptly. Do not miss the notification deadline while waiting for a final expert opinion.
4. Allow an inspection. Arrange a time and record the seller’s response without waiving your rights.
5. Obtain a technical assessment. Establish the cause, when it arose, the appropriate repair method and the likely costs.
6. Consider preserving evidence before major repairs. If repairs would remove the evidence, assess whether a court procedure to preserve evidence and obtain an expert assessment is needed.
7. Prevent further damage. Document urgent measures taken for safety or to stop water ingress and retain the invoices.

A privately commissioned expert opinion may assist with assessment and negotiations, but it does not guarantee that a further expert examination will be unnecessary in court. Photographs record what is visible; technical analysis should explain why it has occurred.

How should you notify the seller of a property defect?

Even when the law does not require a detailed description, it is useful for evidential purposes to identify the agreement and property, the handover date, the discovery date, the problem and the available evidence. Request a response and propose an inspection. The specific remedy sought should be consistent with the legal basis of the claim.

Use a method that allows you to prove notification, such as registered post, retaining a copy of the letter and proof of dispatch, supplemented by email. Confirm telephone agreements in writing. For commercial contracts, Article 406 requires a more detailed description of the defect and an invitation to the seller to inspect the property.

Frequently asked questions about hidden property defects in Croatia

Is damp discovered after buying an apartment a hidden defect?

It can be, if it could not have been detected through an ordinary inspection and the seller is responsible for its cause. A pre-existing waterproofing or plumbing fault must be distinguished from damp arising later or resulting from how the property is used.

Can I get my money back after buying a defective house?

Repayment of the purchase price may follow a valid termination of the agreement. Termination requires the statutory conditions to be met and is not available merely because a minor defect has been discovered.

Have I lost my rights by signing a handover report without objections?

Not necessarily. A hidden defect may become apparent only later. The key issues include whether it was visible on handover, what was agreed and when the seller was notified.

Must I prove that the seller knew about the defect?

Not in every case. Basic liability under Article 400 does not depend on the seller’s knowledge. Proving knowledge is particularly relevant to concealed problems, contractual exclusions of liability and certain exceptions to time limits.

Does a ten-year warranty cover everything in a new-build property?

No. The special statutory liability concerns defects affecting essential building requirements and is subject to separate notification and enforcement deadlines. Contractual warranties and other defects must be assessed separately.

Can I arrange repairs myself and send the seller the bill?

That will not always be sufficient for a successful claim. Before starting work, preserve the evidence, notify the seller and assess the seller’s right and obligation to remedy the problem. For emergency measures, document why the work could not wait.

Legal help with property defect claims in Croatia

Andrej Bašović’s law office in Rijeka provides legal assistance with real estate disputes and compensation claims. If you have discovered a problem after buying an apartment or house in Rijeka, the Kvarner region or elsewhere in Croatia, prepare the purchase agreement, handover report, photographs and correspondence with the seller for an initial assessment.

The legal review covers potentially liable parties, applicable deadlines, evidence and the appropriate remedy, from notification and negotiations over repairs to a price reduction, termination or court proceedings.

Arrange a consultation: andrej@odvjetnikbasovic.hr · +385 91 520 0264.

If you are still planning a purchase, read what a property lawyer in Croatia checks before you buy and our guide to buying an apartment in Croatia without a real estate agent. Legal due diligence and a technical building inspection serve different purposes and complement each other.

Legal sources

• Croatian Civil Obligations Act, original text, Official Gazette NN 35/2005, read with subsequent amendments; particularly Articles 400–422 and 631–634.
• Amendments to the ZOO, NN 126/2021: liability for material defects, buyers’ remedies and transitional provisions for contracts concluded before 1 January 2022.
• Amendments to the ZOO, NN 69/2026: particularly Articles 6–8 and 21–22 on repairs and when the amendments apply.
• Consolidated ZOO text on Zakon.hr: a supplementary reference for the current provisions.

Legal position checked for the Croatian source article on 1 October 2026. The linked legislation is in Croatian. This English adaptation provides general information on Croatian law. Liability and deadlines depend on the agreement, its date, the parties’ status, the cause of the defect and the evidence. Older contracts require a review of earlier legislation and transitional provisions.