If a builder builds a new house for you, you have to sign a delivery note saying that you are happy that the house was completed according to the plan. The builder then gives you a three-month guarantee. This means the builder is responsible for the first three months for fixing any problems with the way the house was built.
Sometimes hidden problems only show after the first three months. For example, if the roof collapses after the first few years, it may be the builder’s fault. This is known as a latent defect.