Condition report, electrical report and hidden defects: how to see what is wrong with the house
The condition report (tilstandsrapport) and the electrical installation report (elinstallationsrapport) show the house's defects, and together with an offer of change-of-ownership insurance (ejerskifteforsikring) they release the seller from the 10-year liability for hidden defects. Read the colour scale red/yellow/grey/black, the electrical report's icons and what the insurance actually covers, before you bid.
Updated: 2026-06-22
The short answer: you find out what is wrong with the house by reading two documents the seller has prepared before the sale. The condition report (tilstandsrapport) describes the building’s physical condition, and the electrical installation report (elinstallationsrapport) describes the electrical installations. Together with an offer of change-of-ownership insurance (ejerskifteforsikring) they make up the house inspection scheme (huseftersynsordningen), and it is that scheme which releases the seller from the 10-year liability for hidden defects and shortcomings (skjulte fejl og mangler). If you read the two reports correctly, you can see most known problems before you bid.
The house inspection scheme: three things at once
To escape the liability for defects, the seller must do three things, and they must all be in place before you sign:
| Element | Content | Validity |
|---|---|---|
| Condition report (tilstandsrapport) | A building expert’s review of the house’s visible physical condition | Less than 6 months old |
| Electrical installation report (elinstallationsrapport) | An authorised electrician’s review of the electrical installations | Less than 12 months old |
| Offer of change-of-ownership insurance | The seller must pay at least half of the cheapest offered premium | Must be present at the time of the deal |
If one of the three elements is missing, the seller has not completed the scheme, and so the seller continues to be liable for hidden defects for up to 10 years. This is important for you to know, because it determines who bears the risk for a problem that no one has seen yet.
The condition report’s colour scale (since 1.10.2020)
The condition report uses a colour scale that replaced the old letter codes (K0 to K3, UN and IB) on 1 October 2020. Each individual piece of damage is given one of four colours, and the colour tells you how serious the damage is for the building:
- Red = critical damage. Damage that has already caused, or will cause, a building part to stop functioning. This is where you should pay the most attention.
- Yellow = serious damage. Damage that develops further if nothing is done.
- Grey = less serious damage. Damage that has no major significance right now.
- Black = should be examined more closely. The expert cannot assess the damage without further investigation, so the extent and cost are unknown.
A black marking is not the same as a small defect. It means something is unresolved, and unresolved can become expensive. Many buyers overlook black, because it does not look as dramatic as red. Take it just as seriously: ask, if necessary, for a building expert who can look more closely at the black points before you settle on a price.
Also remember that a building expert only describes what is visible and accessible on the inspection day. A house without red markings is not necessarily free of defects. It is a house where the visible conditions were in order on that day.
The electrical installation report has its own system
The electrical installation report does not use the colour scale. It has its own icon system, because electrical faults are about safety more than building wear. Among other things, the icons mark:
- Risk of electric shock
- Risk of fire
- Illegal conditions (installations that do not meet the rules)
- Conditions that should be examined more closely
An illegal or dangerous installation can cost considerably to bring into compliance, and electrical work must be carried out by an authorised electrician. So read the electrical report just as thoroughly as the condition report, and put the marked conditions into your budget before you bid.
What the change-of-ownership insurance actually covers
The change-of-ownership insurance covers hidden defects, that is, damage that was present at the time of purchase but does not appear in the condition report or the electrical installation report. That is exactly the point that makes the insurance important to you: what is stated in the reports you already know about and have taken into account in the price. What you cannot see is what the insurance is there for.
The seller must offer the insurance and pay at least half of the cheapest offered premium. You take out and pay the rest if you want the cover, and most buyers do. The cover typically runs for at least 5 years and can be extended to up to 10 years. Always read the specific policy, because there are exceptions (for example matters already mentioned in the reports, or building parts that the insurance does not include).
If you opt out of the scheme, or the seller has not completed the house inspection correctly, the allocation of liability changes. It is wise to have a property lawyer (boligadvokat) go through the reports and the insurance offer before you sign.
How to use the reports before you bid
- Read the condition report with the colour scale in hand. Note all red, yellow and black markings.
- Read the electrical installation report and note everything with a shock, fire or illegal icon.
- Get a rough price estimate for the marked conditions, preferably from a tradesperson or building expert.
- Check that the insurance offer is there, and what it covers and does not cover.
- Let the reports’ content affect your bid, not just the asking price (udbudspris).
The point is not to find a perfect house. All houses have wear. The point is that you know the house’s defects and their cost before you commit, so you bid on a house you have actually seen on the inside.
Terms to know
Common questions
What do the colours in the condition report mean?
Since 1 October 2020 the condition report (tilstandsrapport) uses four colours. Red is critical damage, yellow is serious damage, grey is less serious damage, and black means the matter should be examined more closely because the expert could not assess it. The colours replaced the old codes K0-K3, UN and IB.
Who pays for the change-of-ownership insurance?
The seller must offer the change-of-ownership insurance (ejerskifteforsikring) and pay at least half of the premium on the cheapest offer. If you want the cover, you take out and pay the rest yourself. The insurance typically covers for at least 5 years and can be extended to up to 10 years.
What does the change-of-ownership insurance cover?
It covers hidden defects, that is, damage present at the time of purchase but not shown in the condition report (tilstandsrapport) or the electrical installation report (elinstallationsrapport). Matters already stated in the reports are in principle not covered, because you knew about them in advance. Always read the specific policy for exceptions.
What happens if the seller does not have a condition report made?
Then the seller has not completed the house inspection scheme (huseftersynsordningen), and so the seller continues to be liable for hidden defects and shortcomings for up to 10 years. The scheme requires a valid condition report, a valid electrical installation report and an offer of change-of-ownership insurance, where the seller pays at least half of the premium.
Does a black marking in the condition report mean a big problem?
Black means the matter should be examined more closely, because the building expert could not assess it on the inspection day. The extent and cost are therefore unknown, and it can become expensive. Take black markings just as seriously as red ones, and have them examined before you settle on a price.
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