Developer ordered to pay $25,000 for leaky new home, court cites 'stigmatization'

A couple in Kaohsiung has won a lawsuit against a prominent listed developer, securing over $25,000 in compensation for a newly built house that suffered extensive water leaks shortly after they moved in. The couple purchased the detached home for approximately $530,000 in 2021, taking possession in September 2022 and moving in the following May.

Within months, they discovered severe water seepage in multiple locations, including the ceiling of the back door on the first floor, around the air conditioning power outlet, a shared wall with a neighbor, and the stairwell wall. The developer undertook an eight-month repair process, involving extensive demolition of the kitchen floor and walls, and injecting sealant into the damaged areas to address the leaks.

Despite the developer's efforts and claims that the leaks were "completely repaired" and "invisible," the couple pursued legal action, seeking nearly $57,000 in damages. They argued that living in a house undergoing constant drilling and repairs caused them significant distress. The court, however, focused on the long-term impact of the repairs.

An appraisal commissioned by the court found that the developer's method of injecting sealant, rather than replacing damaged pipes, carried a risk of future recurrence after the warranty expired. Crucially, the court recognized that the history of water damage would need to be disclosed in future property transactions. This disclosure, the appraisal concluded, would create a "stigma effect," significantly reducing the property's market value by an estimated 4.69% due to buyer apprehension and the availability of comparable properties without such issues.

“

The house has already been stigmatized.