Seller’s Duty to Disclose Lead Pipes in Real Estate Transactions: Consequences and Background
When purchasing real estate, the condition of utility installations is of central importance—especially regarding the quality of the drinking water system. According to a recent decision by the Lübeck Regional Court (Case No. 2 O 231/23; judgment of 12.08.2025), the seller of a residential property is obligated to inform the buyer about the use of lead pipes in the drinking water supply. The court based its decision on the contractual duty to disclose as well as the existing health risks associated with lead pipes.
Health and Legal Relevance of Lead Pipes
Health Risks from Lead in Drinking Water
Lead in drinking water installations poses a serious health risk. Even small amounts can cause severe health impairments, especially in children, pregnant women, and the elderly. The current Drinking Water Ordinance (TrinkwV) therefore stipulates strict limits for lead in drinking water and prohibits the use of lead pipes in new construction.
Legal Regulations and Traffic Safety Obligations
The use of lead pipes is not only a health concern, but also carries legal consequences. Homeowners are required under the TrinkwV to ensure that the delivered drinking water complies with the statutory limits. If these limits are exceeded, there is an obligation to act; remediation of the piping may be necessary. The duty to ensure safety also includes informing potential buyers about existing risks and defects.
Tightened Duty to Disclose for Real Estate Sellers
Hidden Defects and Fraudulent Concealment
Lead pipes in the drinking water system represent a hidden defect that is not apparent to laypersons without specific technical knowledge. Sellers who are aware of the existence of such pipes must inform prospective buyers without being asked. If they fail to disclose this information, it may— as confirmed by the Lübeck Regional Court—be considered fraudulent concealment of a material defect. As a result, contractually agreed exclusions of liability may be set aside.
Rescission and Claims for Damages
Buyers who were not informed about essential matters such as the existence of lead pipes may, based on the statutory warranty rights (§§ 492 ff. BGB), sue for rescission of the purchase agreement or for compensation for damages incurred. Such a defect is particularly significant if it considerably impairs the use of the purchased property and imposes additional costs for remediation on the buyer.
Practical Implications for Contract Drafting and Due Diligence
Significance for the Contractual Parties
For sellers, this results in the necessity to disclose all known facts that may have a significant impact on the value or usability of the property. On the buyer’s side, the importance of a thorough technical inspection as part of due diligence increases, particularly with regard to the existing building installations.
Special Features under Real Estate Law
In commercial law, corporate law, or in the context of larger transactions such as the acquisition of portfolios or participations, this duty to disclose plays a central role for the legal and economic assessment of transactions. In an international context, different standards and country-specific regulations must also be taken into account.
Further Considerations and Recommendations
The decision of the Lübeck Regional Court is part of a series of rulings that further clarify the disclosure and information duties of contracting parties in real estate purchases. It highlights that the proper disclosure of relevant circumstances is an integral part of every real estate transaction and minimizes both legal and economic risks.
For further questions regarding obligations and risks related to the legally compliant drafting of real estate purchase agreements, measures concerning material defects, or dealing with technical risks in real estate transactions, executives from companies, institutional investors, and high-net-worth individuals are welcome to contact the lawyers at MTR Legal.
