Old water debt discovered after auction: claim against the purchaser dismissed

The association sought additional water debt of a former owner from the purchaser after auction. The court refused recovery on good-faith grounds and inadequate proof of the calculation; it did not establish limitation.

Narva linn, 26. juuli tn 7 korteriühistu, formerly KORTERIÜHISTU 26. JUULI 7 NARVA, sought a former owner’s debt and late-payment interest from purchaser XX. A meter check after the auction revealed differences from previously reported water readings. The purchaser objected that the debt disclosed at purchase had been paid and that the association had not notified the bailiff of the additional claim beforehand. Applying the law in force when the obligations arose, the court accepted the good-faith objection. It found that the association had not properly checked the data over a prolonged period or explained why the extra debt was not identified before sale. On these facts, later claiming it from this purchaser was inconsistent conduct. The documents also did not allow verification of monthly charges, payments and late-payment interest. The court could not therefore establish when obligations became due or decide the limitation defence. Dismissal was not based on a finding that the whole claim was time-barred. Debt and late-payment interest were refused. The association must bear its own, the defendant’s and the third party’s costs, with amounts determined separately.

The additional debt and late-payment interest claim was dismissed. The court found recovery from this purchaser contrary to good faith and the calculation insufficiently proved; limitation was not established. The association bears participants’ costs as ordered, with their amount fixed separately.