Hidden Defects in Real Estate Finishing 2026: How to Detect Them Before Buying, Your Legal Rights, and Contractor Guarantees

Introduction: When Beauty Deceives

We wish you, dear reader, to find your dream home easily and safely. However, reality shows that many buyers fall into the trap of "deceptive finishing" - properties that look like palaces from the outside but hide disasters inside that could cost you tens of thousands of riyals.

Imagine buying a villa for 1.5 million riyals with luxurious finishes and elegant decorations, only to discover six months later that the plumbing is completely damaged, the electrical wires are substandard and pose a life risk, and the foundations have problems appearing as cracks in the walls!

This scenario is not fiction but a reality experienced by many buyers in Saudi Arabia. That's why we wrote this comprehensive guide that reveals everything about hidden defects: How to detect them before buying? What are your rights if you discover them after purchase? And how to get compensation from the contractor or seller?

First: What Are Hidden Defects in Real Estate?

Hidden defects are problems that cannot be discovered through regular inspection or with the naked eye at the time of purchase, but rather appear later after living in or using the property. The Saudi system clearly distinguishes between two types of defects:

Apparent Defects

These are defects that can be discovered through regular inspection such as: scratches on floors, peeling paint, obvious tile breaks, or doors that don't close properly. If you don't object to these defects at the time of purchase, it may be considered that you accepted them and factored them into the price.

Hidden Defects

These are fundamental defects that only appear after a period of use, including: water leaks inside walls, foundation problems causing building settlement, faults in buried electrical networks, damage to sewage pipes, weak water or thermal insulation, or any fundamental defect affecting the property's value or habitability.

Why Are These Defects Hidden?

Some contractors or sellers deliberately hide defects with beautiful finishes and luxurious decorations. They install expensive tiles over floors with moisture problems, paint cracked walls instead of addressing the real cause, or use substandard wires hidden behind beautiful walls. The goal is one: sell the property at the highest possible price before the real problems appear.

Second: The Most Dangerous Types of Hidden Defects You Should Know

Let's delve into the most common and dangerous types of hidden defects in Saudi properties:

1. Foundation Problems and Building Settlement

These are the most dangerous defects because they threaten the entire building's safety. They appear as: diagonal cracks in walls in a stair-step pattern, doors and windows that don't open or close easily, tiles separating from the floor, obvious tilting in floors. The cause is usually: weak soil study, use of poor concrete, or errors in structural design.

2. Hidden Water Leaks

Among the most common and long-term damaging defects. They may not appear until months or years later, but they cause: damage to walls and ceilings, mold and moisture appearance, rust in reinforcement steel weakening the structural frame, unexplained high water bills. Sources include: weak waterproofing in bathrooms and kitchens, damage to water pipes inside walls, or weak roof insulation.

3. Electrical Problems

Among the most dangerous defects as they can cause fires or electric shocks. They include: use of substandard wires that can't handle loads, incorrect or unsafe connections, electrical panels not meeting specifications, lack of proper building grounding. Often not discovered until frequent failures or continuous power outages occur.

4. Plumbing Problems

Include: use of substandard pipes that corrode quickly, loose connections causing leaks, incorrect drainage slopes causing frequent blockages, mixing hot and cold water pipes. These problems may not appear until months of continuous use.

5. Weak Thermal and Water Insulation

In Saudi Arabia's hot climate, thermal insulation is very necessary. Its weakness causes: significant increase in electricity bills, difficulty cooling the home in summer, moisture condensation on windows and walls. Weak roof waterproofing clearly appears during the rainy season as ceiling leaks.

6. Defects in Concrete and Structural Frame

Include: use of weak or incorrectly mixed concrete, insufficient or rusted reinforcement steel, honeycombing in concrete weakening columns and beams. These defects are very dangerous and need evaluation by a specialized structural engineer.

Third: How to Inspect Property Before Buying?

The most important advice we give you: Don't buy any property without inspection by specialists. Inspection cost may be 2,000-5,000 riyals, but it could save you tens or hundreds of thousands in repair costs later.

What Do Specialists Inspect?

Certified building inspection companies conduct comprehensive inspection including: structural frame and foundations using specialized equipment, the entire electrical network from the main panel to the smallest switch, plumbing and sewage network with pressure and leak tests, water and thermal insulation using thermal cameras, ceilings and walls to detect hidden cracks or moisture, windows, doors, and finishes.

Warning Signs You Can Detect Yourself

Even before calling specialists, there are signs you can notice yourself: moisture spots or color changes in walls or ceiling, mold or moisture odors in bathrooms or kitchen, cracks in walls especially diagonal ones, doors or windows difficult to open or close, strange sounds in pipes when opening water, abnormal heat in electrical switches or outlets, swelling or peeling in paint.

Questions to Ask the Seller

Ask the seller or contractor directly: When was the property built? Who is the executing contractor and what is their classification? Is there a valid warranty? Have any repairs or renovations been made? Is there insurance against hidden defects? Is the project registered in the Wafi program? Request a copy of the occupancy certificate and building plans.

Fourth: The 10-Year Contractor Guarantee - Your Legal Right

This is one of the most important rights that many buyers are unaware of. The Saudi system requires the contractor and engineer to guarantee the building for 10 years!

What Does the Ten-Year Guarantee Cover?

According to the Saudi Building Code system and Ministry of Commerce regulations, the contractor is obligated to guarantee: foundation work and concrete works for 10 years, roof waterproofing for 10 years, electrical work for 10 years, plumbing work for 10 years. This guarantee starts from the date of the handover report or from the date the occupancy certificate is issued.

Mandatory Insurance for Hidden Defects

Based on a Cabinet decision, contractors in non-governmental sector projects are now required to have insurance against hidden defects that may appear in buildings after use. This insurance protects you as a buyer if you discover hidden defects even if the contractor goes bankrupt or disappears!

When Does the Guarantee Expire?

The guarantee is not binding in certain cases: misuse of the property unit by the buyer, making changes or modifications to the building without the contractor's approval, force majeure causing damage such as earthquakes or exceptional floods, expiration of the specified guarantee period.

Fifth: Your Legal Rights When Discovering Hidden Defects

If you discover hidden defects in your property, you are not alone. The Saudi system provides you with several options to protect your rights:

Your Legal Options

Upon discovering a fundamental hidden defect, you have the right to: demand repair of the defect at the seller's or contractor's expense, request a price reduction proportional to the defect's value, rescind the contract and recover the full amount if the defect is fundamental preventing use, claim compensation for damages incurred.

Required Conditions for Claims

For your claim to succeed, certain conditions must be met: the defect must be hidden and not discoverable through regular inspection, the defect must have existed before the sale and not resulted from your misuse, you must report the defect immediately upon discovery, you must be within the legally specified guarantee period.

Required Documents

Prepare the following documents before filing any complaint: purchase or sale contract, clear photos of discovered defects, technical report from an engineer or certified inspection company, any previous correspondence with the seller or contractor, invoices for any repairs you had to make, occupancy certificate and building plans if available.

Sixth: Where and How to File a Complaint Against a Contractor?

If the contractor or seller refuses to repair the defects or compensate you, you have several entities you can turn to:

First Step: Direct Communication

Before any official action, try to communicate directly with the contractor or seller. Send them a documented official letter explaining the discovered defects and your demands. Give them reasonable time to respond and repair. Document all correspondence and keep copies.

Second Step: Balady Platform

You can file a complaint through the Balady electronic portal or call 940. This platform is designated for complaints against licensed contractors and is part of the Ministry of Municipal, Rural Affairs and Housing.

Third Step: Najez Platform - Commercial Court

If the problem is not resolved, you can file a lawsuit through the Najez electronic platform. Steps: Enter the Najez portal, select electronic services then judiciary, specify the lawsuit classification within commercial judiciary, fill in the lawsuit data and attach documents, submit the lawsuit and follow its status. The Commercial Court handles contractor cases related to commercial buildings, while the General Court handles cases between contractors and individuals.

Fourth Step: Real Estate General Authority

If the project is registered in the Wafi program or if the dispute is with a licensed real estate developer, you can file a complaint with the Real Estate General Authority that oversees the regulation of the real estate sector.

Important Conditions Before Filing a Complaint

Pay attention to these points: the contractor must be registered in the contractors' register, you must have previously contacted them and submitted a written letter, you must be the property owner or their official representative, if you filed a lawsuit, you cannot submit the same complaint to the contractors' registrar.

Seventh: Wafi Program - Your Protection in Off-Plan Sales Projects

If you're buying an off-plan property (before construction completion), the Wafi program is your protective shield.

What is the Wafi Program?

Wafi is a program supervised by the Ministry of Municipal, Rural Affairs and Housing, aimed at regulating off-plan sales activity and protecting buyers' rights. No developer is allowed to sell an off-plan unit without obtaining a license from Wafi.

How Does Wafi Protect You?

The program provides several mechanisms to protect you: a bank escrow account where all your payments are deposited in a special account that is only disbursed according to actual completion percentages, certified engineering supervision that monitors execution quality, approved standard contracts that protect your rights, guarantees on construction and mechanical works for periods up to 10 years.

Tips for Off-Plan Buying

Make sure the project is licensed by the Wafi program through their official website, review the engineering office supervising the project, look at the updated timeline and completion percentage, request approved plans and designs, ensure there's a bank escrow account for the project, don't sign any contract not approved by Wafi.

Eighth: Golden Tips to Avoid Hidden Defects

Before Buying

Don't buy any property without inspection from a certified specialized company, verify the contractor's classification through the Balady platform, request a copy of the occupancy certificate and hidden defects insurance document, ensure there's a clear contract including a guarantee clause, if the project is off-plan ensure it's registered in Wafi, don't be impressed by surface finishes and focus on fundamentals.

At Handover

Bring an engineer or specialized inspector with you at handover, don't sign the handover report until everything is inspected, document any observations or defects with photos and writing, require repair of any defects before final signing, keep copies of all papers and documents.

After Handover

Monitor the building during the first months looking for any abnormal signs, if any defect appears immediately document it and contact the contractor, don't make any major modifications before the warranty period ends, keep a record of any problems that appear with their dates and photos.

Frequently Asked Questions

How much does property inspection before buying cost?

The cost ranges between 2,000 and 5,000 riyals depending on the property size and inspection comprehensiveness. This amount is very small compared to repair costs that could reach tens of thousands.

Can I claim compensation after two years of purchase?

Yes, as long as the defect is hidden and appeared within the guarantee period (10 years for construction works). The important thing is to report immediately upon discovering the defect.

What if the contractor goes bankrupt or disappears?

If they have mandatory hidden defects insurance, you can claim from the insurance company. If the project is registered in Wafi, your money is protected in the escrow account.

Do I have the right to rescind the contract if I discover hidden defects?

Yes, if the defect is fundamental preventing use of the property. However, it's advisable to consult a specialized lawyer to evaluate your case.

What's the difference between a building inspection company and an individual engineer?

Specialized companies usually have a complete team (architectural engineer, electrical, mechanical) and advanced equipment like thermal cameras and pressure devices. An individual engineer may not cover all aspects.

Do old properties have warranty?

If you bought an old property from a previous owner, the original warranty transfers to you as a successor. But if the warranty period has ended, the responsibility falls only on the seller if you prove they knew about the defect and hid it.

Important Numbers and Entities

Complaint and Support Entities

Balady Electronic Portal: balady.gov.sa or call 940. Najez Platform for Judiciary: najiz.sa. Real Estate General Authority: rega.gov.sa. Wafi Program: wafi.housing.gov.sa. Ministry of Commerce (Consumer Protection): 1900.

Conclusion

Hidden defects in real estate are a real problem, but not an inevitable fate. With knowledge, prior inspection, and good documentation, you can protect yourself and your rights. Always remember: don't be deceived by beautiful appearances, inspect the property before buying, ensure there's warranty and insurance, document everything and keep papers, and know your legal rights well.

We wish you a property purchase that will be a source of happiness and stability for you and your family, free from any hidden defects. Share this guide with everyone you know thinking about buying property, as knowledge is the best prevention.