Hidden-defect disputes over real estate on the rise in Estonia, with AI playing a role
Estonian real estate experts say claims over hidden property defects are becoming more frequent, partly because buyers now use AI to draft complaints. Common disputes involve noise insulation, dry rot, mold and waterproofing failures.
Real estate experts in Estonia report a rise in disputes between buyers and sellers over hidden property defects, a trend they partly attribute to the growing use of artificial intelligence. Karlis Kolk, a lawyer and board member at real estate agency Uus Maa, said people are more aware of their legal rights, and AI tools now help them draft claims without hiring a lawyer first.
Kolk said frequent complaints involve poor sound insulation between neighboring units, construction flaws, ground subsidence and inadequate waterproofing. Dry rot is a common issue in older wooden buildings, while mold cases are harder to resolve because it is difficult to prove exactly when the damage occurred.
Mold often tied to how a home is used
Marko Sults, head of Ehituskaitse Büroo, told ERR's "Vikerhommik" radio programme that mold causes significant anxiety among owners, but even in new developments it can result from residents switching off ventilation systems or electric underfloor heating to cut energy costs. If mold appears near the end of the standard two-year warranty period because of such usage habits rather than a construction fault, the developer is not liable.
According to Sults, the trickiest properties are renovated apartments inside unrenovated buildings, where technical systems — such as ventilation connected to the wrong shaft — may be flawed. Buildings renovated gradually over decades without documentation pose similar risks. The costliest problems tend to surface in bathrooms and other wet rooms, since their internal structure cannot be inspected before a sale.
Disclosure protects sellers
Kolk noted that sellers remain liable even for defects they were unaware of, unless the contract specifically exempts them — though buyers may refuse such clauses. Notaries recommend disclosing everything known about a property, including noisy neighbors or nearby railways, to prevent later disputes.
Claims over hidden defects can reach or exceed a property's purchase price, for instance when dry rot forces a wooden house to be demolished. Courts can apply a reasonableness principle to reduce oversized claims. Both experts said buyers rarely search for defects in bad faith to recoup money; more often, flaws go unnoticed because home-buying is an emotional process. Kolk added that he generally advises against litigation, since court disputes can last years and ultimately cost more than the matter at stake.
