[Direct answer]Yes. If the seller knowingly conceals major quality issues such as water seepage and leaks in the house, it constitutes fraud. The buyer may, in accordance with Article 148 of the Civil Code of the People's Republic of China (effective January 1, 2021), request the rescission of the contract, or choose to maintain the contract and claim compensation for repair costs and the price difference - the price difference shall be determined by the assessment of the value depreciation caused by water seepage, and shall be claimed together with the repair costs. In judicial practice, the determination of "knowing and concealing" relies on evidence: repair records, neighbor's testimonies, chat records, and inspection reports. The lack of any of these may reduce the credibility of the claim.

I. Problem Background and Typical Scenarios

As soon as the rainy season arrives, large patches of yellow stains appear on the ceiling. After inquiring with the property management company, I learned that the previous owner had repaired it three times. Or, during the house viewing, the walls looked brand new, but after the transfer of ownership, I found that the walls were covered with waterproof patches. Water leakage in old houses is a common defect. The difference between whether the seller mentions it or not can result in a price difference of tens of thousands to hundreds of thousands of yuan.

II. Key points of dispute

First, the proof of "knowing full well" — the excavation of repair traces and historical records. Second, the choice of paths for revocation and compensation. Third, the relationship between the price difference and repair costs — is there still a price difference after the repair? Fourth, the distinction between major quality issues and general defects.

III. Professional analysis by Henglue Law Firm

When handling such cases, the strategy is determined based on the evidence. 1. **First category**: Evidence of intentional concealment: - The seller repaired the water leakage before the transaction (property repair records, payment receipts for construction work). - They used furniture or decorations to cover the leaking areas during inspections. - They denied the existence of water leakage during conversations, while neighbors confirmed that the issue had persisted for years. - Combined, this constitutes intentional concealment. The buyer can either rescind the contract and demand a full refund plus compensation, or maintain the contract and claim repair costs and depreciation compensation. Either option is more favorable on paper. 2. **Second category**: Evidence of intentional concealment is difficult to prove, but the quality issue is real: - The buyer can claim the seller's liability for defects and demand repairs or price reduction according to the contract's quality clauses. - For water leakage repairs involving redoing the waterproofing layer, claim compensation based on a professional assessment of the current condition and repair proposals. - For depreciation claims, require a valuation report from an appraisal agency. If the water leakage has been repaired and there are no hidden issues, the court will narrow the scope of compensation. 3. **Third category**: Buyer negligence during inspection: - If the buyer fails to raise objections to visible water stains during inspection, they may be deemed to have accepted the current condition. - Therefore, photos, videos, and written acceptance documents from the inspection process are crucial evidence. **Practical key actions**: - Immediately commission a professional inspection report and obtain notarized evidence upon discovering issues. Avoid overly aggressive renovations to cover traces. - Once the water leakage is repaired, the evidence chain of intentional concealment is broken. - Henglue's experience shows that the outcome of such cases hinges on evidence collection in the first three months, not in court. - For compensation calculations: - **Depreciation**: The difference between the market price of a similar unit without water leakage and the current price of the disputed unit. - **Repair costs**: The professional repair proposal. - Both claims are mutually exclusive and can be pursued concurrently.

IV. Practical suggestions and legal basis

Action List: First step: During the rainy season or during the waterproofing test, commission a professional organization to issue a detection report. Second step: Dig up evidence that the seller was aware of the leakage (property records, repair receipts, neighbor testimonies, and traces of cover-ups). Third step: Send a written notice to the seller demanding cancellation or compensation and keep a record of it. Fourth step: Apply for an assessment of the property's depreciation in value during the litigation and claim both the price difference and repair costs simultaneously. Main legal basis: Article 148 (rescission due to fraud) and Article 157 (return and compensation) of the Civil Code of the People's Republic of China; Articles 577 and 607 (liability for non-conformance with contractual quality requirements), effective January 1, 2021; specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Reminder

Three reminders: There is a one-year exclusion period for revocation (Article 152 of the Civil Code), which starts from the moment you become aware of the grounds for revocation. The waiting period is very short; for cases of water seepage, it's important to collect evidence before renovation and then proceed with the work; the professional inspection fee of a few hundred yuan during the house-buying process is the cheapest insurance against losses of hundreds of thousands of yuan in price differences. Don't skimp on it before signing the contract and taking possession of the house. For disputes involving housing quality, you can seek help through legal channels.Real estate transactions and construction projectsFor obtaining a comprehensive solution for services involving the collaboration with inspection and evaluation agencies, you can refer to the quality section in the same column. For services involving fraudulent claims and compensation requests, you can combine the relevant information from other sections.Business and contract disputes in enterprisesFor disputes related to decoration and repair, you can seek advice from the platformSpecial servicesTeam, if you have any difficult cases, please feel free to contact us.Special services.

VI. Frequently Asked Questions

Q1: If the water leakage has been repaired, can I still ask for a price difference refund?

It can be attempted. If the fraud is proven, both the depreciation difference and the repair costs can be claimed; if only general liability for defects is claimed and the house has been repaired with no hidden problems, the support for the price difference will be limited, and the case will be evaluated on a case-by-case basis.

Q2: The seller said they didn't know about the water leakage before buying the house. What should I do?

Looking for clues based on "knowledge": property repair records, construction payment receipts, concealed renovations, neighbor's testimonies, and residual adhesive from renovations; water seepage over the years will inevitably leave traces, making it difficult for the seller to prove that they were unaware of it.

Q3: Which is better, to rescind the contract or to refund the price difference?

When considering the financial aspects, it might be more advantageous to withdraw the refund and seek compensation when house prices rise sharply. The transaction costs are lower, and it's more practical to claim the price difference when only the difference in price is lost. After calculating the holding cost and the cost of repurchasing, you can make a final decision.

Q4: How is the price difference calculated?

The evaluation agency shall issue an evaluation opinion based on the extent of the depreciation of the market value caused by the seepage, and refer to the transaction price of similar houses in the same community and with the same layout for comparison. The evaluation fee shall be paid in advance by the losing party in accordance with the principle that the losing party shall bear the cost of the evaluation.

Q5: How long will the lawsuit take?

The evaluation and appraisal process typically takes between six months and one year, with simplified procedures concluding within three months. Cases with complete evidence and clear amounts take even less time, and the specific timeframe will be determined by the court.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the adjudication guidelines in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Legal services for the purchase and sale of real estate·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If a dispute arises, please consult a practicing lawyer in time.