Successful recovery of a discount on the purchase price due to defects in a new building
After taking over the unit, the client discovered structural and technical defects that were not apparent at the time of handover and which significantly reduced the quality and market value of the property. ARROWS conducted a legal analysis of the contractual documentation, in particular the purchase agreement and handover protocol, and assessed the extent of the developer's liability under the Civil Code. In cooperation with a technical expert, an expert report was prepared quantifying the extent and value impact of the defects. Based on this analysis, we chose a strategy of claiming a reasonable discount on the purchase price instead of withdrawing from the contract or suing for the removal of defects. This option was chosen because the client was interested in using the property and a quick financial settlement was the most economically efficient solution.
ARROWS prepared a formal complaint, conducted negotiations with the developer's legal representative, and structured the negotiating position so that it was clear that any legal proceedings would be risky for the developer both financially and in terms of reputation. The argument was based on a demonstrable reduction in the value of the work and on case law concerning the right to a discount. The result was the conclusion of an agreement on financial compensation in an amount corresponding to the extent of the defects, without the need to initiate legal proceedings. The client thus received adequate compensation and at the same time retained ownership of the property without further procedural burden.
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The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.