Compensation satisfied for "hidden defects"

If after the acquisition of a property defects or problems arise that existed before the sale but were not visible or easily detectable, the buyer can claim compensation from the seller for "hidden defects." Furthermore, the defects must be significant enough to substantially decrease the value of the property or make it less suitable for the intended use (structural problems, dampness, sanitation or sewage issues, etc.).

Well, in the event that you have been the seller of the property and act as a private individual (that is, you are not a business dedicated to the buying and selling of properties), if after the sale you are reported by the buyer for "hidden defects" and the judge orders you to pay compensation, in the year of the judgment you can rectify the self-assessment of IRPF for the year of the sale and declare a lower sale price and a lower profit . You can also request a refund of the excess IRPF paid.

If at the time the final judgment is issued ordering you to compensate the buyer more than four years have passed since the end of the IRPF filing period for the year of the sale, also request the rectification of the IRPF for that period and ask for a refund of the improperly paid tax. In this case, it can be understood that the four-year statute of limitations to rectify the IRPF declaration submitted is counted from the date of that judgment.

 

If you make any purchase or sale of properties, consult us. We will advise you to optimize your taxation for your real estate operations.