Buying a New Construction Home – What Does a Buyer Need to Know?
When buying a new construction home, sometimes the buyer runs into a defect - after all, mistakes are inevitable in almost every job.
However, not every buyer knows what warranties he can get and what periods are valid.
Legislation in force in Lithuania, in particular the Civil Code and the Law on Construction, the latest version of which came into force on 1 January 2017. provides the following guarantees to home buyers:
Warranty for visible defects – 5 years;
Hidden defects of the structure: (structures, pipelines, etc.) – 10 years;
Intentionally concealed defects – 20 years.
It is important to note that established warranties are not empty promises, as the guarantee obligations are covered by guarantee coverage issued by insurance companies. This document assures the buyer of the cost of rectifying defects found during the first 3 years of the statutory warranty period due to the fault of the real estate developer in the event of insolvency or bankruptcy of the real estate developer.
More about insurance guarantee: https://vtpsi.lrv.lt/lt/naujienos/rangovo-nemokumo-ar-bankroto-atveju-defektu-salinima-uztikrins-draudimo-garantija