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Warranty & defects.

When a defect appears in the property you bought, remedies, deadlines and the clauses in the purchase contract decide your claims. We assess which route holds and enforce it.

BRANDAUER Rechtsanwälte
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BRANDAUER Rechtsanwälte

Salzburg law firm for real estate, property and corporate law

Every matter is handled by a coordinated team of lawyers, legal staff and specialists. In property purchase matters we look at the contract, land register, escrow and tax consequences together.

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A defect in the property you bought means the immovable does not have the agreed or the ordinarily expected qualities. The ABGB distinguishes between a material defect, such as damp or a deviating floor area, and a legal defect, such as a missing official permit. The warranty under sections 922 et seq ABGB restores the contractually compliant condition.

Success usually turns on timing. The warranty for immovable property becomes time-barred three years after handover (section 933 ABGB); during the first six months a presumption works in your favour (section 924 ABGB). Beyond that, it matters whether the defect was obvious or hidden and whether warranty was validly excluded in the purchase contract.

This page orders the remedies, their sequence and their deadlines, and shows where exclusion clauses reach their limits. The guide below helps you assess your situation but does not replace an examination of the individual case.

Assess your situation

Where do you stand on warranty and defects?

Answer one or two questions about handover and any exclusion clause. You will receive a first, non-binding assessment of your situation.

Already know you want to get in touch? Go straight to the enquiry form.

01 Question 1

How long ago was the property handed over?

The warranty period for immovable property is three years from handover (section 933 ABGB). During the first six months an additional presumption works in your favour (section 924 ABGB).

All paths at a glance

Overview of all answers.

01

During the first six months the burden of proof works for you. Secure the defect now.

If the defect in the property appears within six months of handover, section 924 ABGB presumes it already existed at handover. The seller would have to prove otherwise. You can demand repair regardless of fault; only if repair fails do price reduction or rescission come into play (section 932 ABGB).

Document the defect with photos and dates and request repair in writing. At the same time, check whether the purchase contract contains an exclusion clause and whether it covers this defect at all.

02

Without an exclusion the three-year warranty is available. Demand repair first.

If there is no exclusion clause, you can demand repair regardless of fault within the three-year period of section 933 ABGB where the property does not have the agreed or the ordinarily expected qualities. Only if repair is impossible, disproportionate, refused or unsuccessful do price reduction or rescission replace it (section 932 ABGB).

Report the defect promptly and secure evidence. For a defect that is not merely minor, a reversal of the purchase may also be possible, which should be assessed early.

03

Hidden or warranted defects override the exclusion. Your position is strong.

A warranty exclusion covers neither fraudulently concealed defects nor expressly warranted characteristics. If the seller concealed a hidden defect known to them, or expressly promised a characteristic (for example floor area, zoning or freedom from damp), your warranty claims survive despite the clause.

Where there is fraudulent concealment, contesting the contract for fraud under section 870 ABGB also comes into play; where there is a mistake about an essential characteristic, contesting it for error under section 871 ABGB. Secure what was promised and have the scope of the clause assessed.

04

With a valid exclusion for the visible defect, the scope of the clause remains to be checked.

A valid warranty exclusion can rule out claims for obvious defects that were recognisable on inspection. In a consumer transaction, however, such an exclusion is only permissible to a limited extent under section 9 KSchG; in particular, a waiver before the defect is known is invalid.

Have it checked carefully whether the clause was validly agreed, whether it covers the specific defect at all, and whether there is a warranted characteristic or a fraudulently concealed circumstance that overrides the exclusion.

05

Once the warranty period has expired, damages and contesting the contract move to the foreground.

After the three-year period under section 933 ABGB expires, a warranty claim is generally excluded. A fault-based damages claim under section 933a ABGB may nonetheless exist, for example where the seller culpably concealed a defect. Particularly for long-hidden defects this route gains importance.

Where there is fraudulent concealment, contesting the contract for fraud under section 870 ABGB also comes into play. Have it checked whether the warranty period has actually expired, as its start is often disputed, and which claim still holds.

The remedies at a glance

Repair, price reduction, rescission, damages and contesting the contract

The ABGB arranges the warranty remedies in tiers. Repair comes first, only then price reduction or rescission. Damages apply in addition where there is fault, and contesting for error follows its own rules.

Warranty remedies and related claims when buying property under the ABGB
Remedy When it applies Effect
Primary Repair First, as long as possible and reasonable The defect in the property is remedied
Secondary Price reduction If repair fails or is refused The purchase price is reduced in proportion to the loss of value
Secondary Rescission (reversal) Only for a defect that is not merely minor The purchase is reversed, performances are returned
In addition Damages (section 933a ABGB) Where the seller is at fault Further consequential losses are compensated as well
Alternative Contesting for error (section 871 ABGB) For an essential mistake about a characteristic The contract can be adjusted or set aside

The sequence under section 932 ABGB must generally be observed: rescission as a reversal of the entire purchase is only permissible for a defect that is not merely minor. The table offers an overview and does not replace an examination of the individual case.

When the property has a defect

A defect exists under section 922 ABGB if the property does not have the agreed or the ordinarily expected qualities. This covers both a material defect, such as damp, mould or a deviating living area, and a legal defect, such as a missing official permit or zoning that differs from what was expected. The decisive moment is the state at handover.

Of particular importance are warranted characteristics. Where a floor area, a zoning or freedom from damp is expressly promised, the property must have that characteristic. The warranty is independent of fault: it is enough that the property is objectively defective.

Obvious and hidden defects, the limits of an exclusion clause

A defect is obvious if you could recognise it on inspection; it is hidden if it only appears later, such as concealed damp behind cladding. This distinction is decisive for the scope of an exclusion clause.

A clause such as "bought as inspected" is generally permissible in a private sale. It does not, however, cover fraudulently concealed defects or expressly warranted characteristics. In a consumer transaction, section 9 KSchG also sets narrow limits: a waiver of the statutory warranty before the defect is known is invalid.

Deadlines and the distinction from error and fraud

The warranty for immovable property becomes time-barred under section 933 ABGB three years after handover. During the first six months the presumption under section 924 ABGB helps: if a defect appears in this period, it is presumed to have already existed at handover.

Alongside the warranty, contesting the contract for error under section 871 ABGB may apply where you were mistaken about an essential characteristic of the property, for example about floor area or extent or about zoning and use. Where the seller acted fraudulently, contesting it for fraud under section 870 ABGB comes into play. An important piece of evidence is often the energy performance certificate, which documents the recorded condition.

This page offers a general overview of the Austrian legal position (legal status June 2026) and does not replace advice in an individual case. The start of deadlines and the scope of an exclusion clause are often disputed in an individual case.

Frequent questions

Warranty and defects when buying property.

How long do I have warranty after buying property? +

For immovable property the warranty period under section 933 ABGB is three years from handover. Within this period you must enforce your claims in court if necessary. The exact moment of handover is often disputed in an individual case and should be documented early.

Does the clause "bought as inspected" apply to every defect? +

No. Such an exclusion clause is generally permissible in a private sale, but it covers neither fraudulently concealed defects nor expressly warranted characteristics. In a consumer transaction it is only valid to a limited extent under section 9 KSchG; a waiver before the defect is known is invalid.

What is the difference between an obvious and a hidden defect? +

A defect is obvious if you could recognise it on inspection; it is hidden if it only appears later, such as damp behind cladding. For hidden defects the warranty typically survives, even where the contract contains an exclusion clause.

The living area is smaller than stated, what rights do I have? +

Where the actual area deviates from a warranted figure, there is regularly a defect. You can demand repair, price reduction or, for a defect that is not merely minor, rescission (section 932 ABGB). For an essential mistake about the extent, contesting the contract under section 871 ABGB additionally comes into play.

In depth

Terms on this focus area

Statutory warranty

The fault-independent claim under sections 922 et seq ABGB and its tiered remedies when buying property.

Warranted characteristics

Why expressly promised characteristics such as floor area or zoning override an exclusion.

Energy performance certificate

The significance of the energy performance certificate as documentation of the condition for your claims.
Related topics

This might also affect you.

Purchase contract review

Review the property purchase contract before signing: clauses, purchase price, registration clause, rights of withdrawal and hidden risks.

Handover and possession

Handover, passing of risk, transfer of possession, the handover protocol and benefits and burdens from the effective date.

Condominium and tenancy rights

Buying condominium property, parification values, the owners association and assumed tenancy and lease relationships.

Found a defect in the property you bought?

When buying property, deadlines, clauses and evidence decide. Call us directly or write to us, with a callback within one business day.

+43 662 6280000 [email protected] Book initial consultation (72 euros)
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