If you have purchased a new property and it has structural defects, you’ve come to the right place. In this article, we will explain the legal implications of Article 17 of the LOE regarding the phrase “in any case” as it applies to real estate developers. All within the framework of real estate law.
The legal implications of “in any case”
According to the Building Regulations Act (LOE), the term “in any case” is mentioned in Article 17, paragraph 3. This specifies the real estate developer’s liability toward the contracting parties.
This concept applies when the contractor has caused physical damage to the structure. Depending on the nature of the damage, liability may be attributed to the contractor or the construction company, or they may be exempt from liability.
Don't panic just yet. We'll explain the details of this legal concept—which may seem like a flexible definition—step by step. It's best to understand exactly what conditions apply so you can act in accordance with the law.
Joint and several liability as a legal basis
It should be noted that joint and several liability refers to the sharing of legal responsibility among the parties involved. This concept applies specifically to cases of construction defects, since it is impossible to attribute liability to a single trade that worked on the project.
These situations arise when the purchased home sustains structural damage due to construction defects. When this happens, the primary party responsible should be the construction company.
However, this concept holds the real estate developer jointly liable for any breach of the offer. In other words, the developer will be responsible for handling the damages, even if they have not failed to fulfill their obligations at any point.
3 Cases in Which a Real Estate Developer Is Not Liable for Construction Defects
The concept of joint and several liability is difficult to grasp among those involved in architectural projects. Therefore, the only circumstances in which the developer can be released from liability are:
- Force majeure. This refers to causes beyond the developer’s control, many of which cannot be caused by human action. It applies in cases of floods, earthquakes, landslides, tsunamis, and similar events.
- Third-party liability. In the event that the damages were caused by a company affiliated with the original contractors. If this applies, the claim must be filed directly against them and not against the real estate developer.
- Caused by the plaintiff. If it is determined that the cause or origin of the property damage stems from mismanagement by the owners after the purchase.
If your case does not meet these conditions, you may proceed directly with legal action against the developer. Remember to gather all the necessary information thoroughly before filing a case.
When is the real estate developer liable?
The law is very clear when it comes to establishing liability. The first thing to keep in mind is that you can only claim for damage caused to the property you purchased. Not to third parties or similar parties.
As for the developer, the law is very clear: they are only directly liable for personal injury in the event of a breach of contract. This liability pertains to lost profits or emotional distress. If the claim is based on the contract, it must be brought under the Civil Code.
Consequently, the real estate developer is not liable for property damage. Since the developer is responsible for managing the administrative aspects of the sale, this liability is waived.
Process for Reporting Property Damage
Before embarking on the difficult path of a legal battle, we recommend that you take the time to request an expert report. This will help you determine the extent of the damage, its causes, and the amount owed in your local currency.
If the causes of the damage can be directly attributed to poor construction management or similar issues, you can proceed with the case. The “in any event” clause will even apply to the real estate developer.
It is important to note that this document will serve as the basis for determining who is actually liable for the damages—whether it is the developer or the construction company. In a sense, this will be the strongest evidence you have throughout the case. This form is followed by the photographic report.
