Hi Folks,
I think I have done what I need to do here, I have a property under contract and the settlement date was yesterday. I went and had a look for final inspection and discovered that the house has been broken into and damaged.
I have priced the damage and sent it to the vendor for their consideration (I want to get the purchase price knocked down) the problem is that the repairs amount to about 50% of the purchase price. The vendor does not have insurance.
My thought is that the vendor is unlikely to give me a 50% discount in the purchase price, and given I probably purchased the place at below land value anyway my purchase price is still cheap. My thought is I will bluff all I can (I know they want to discharge a motgage) and try to get some money off. I think there are some moral issues here, but I am not in this game to go into competition with St Vinnies.What are your thoughts???
No advice , pointers or reality checks?
Hi jenwren,
Patience, you will note that very little happens on weekends around here.
Good Luck, LenHi jenwren,
Without knowing the details, and certainly without knowing much about property, I would still caution you about doing something that you feel may have “moral issues”. Sure, you may get a “win” in the short term, but I think one of the most important things in your life is how you feel about yourself. Will you feel good about whatever it is you’re attempting to do here? If so, go ahead and do it. If not I would advise against doing it, no matter what the financial incentive.
My two bob’s worth – I’m certainly not trying to persuade you one way or the other. As I said, I don’t know the details of the deal.
Best of luck with it!
Adam B-C
Don’t let life get in the way of living.
Hello Jenwren,
Bit of bad luck there, but if you go through your contract of sale I’m sure you will find the relevant info in there, that you purchased a property in good faith and certain condition.
If the damaged occur before settlement I beleive the vendors are responsible for this costing.
If in doubt contact your solicitor, might be more money than its worth, but there is principle here to.
How much did you pay for the property, if to repair the damage costs 50% of your initial purchase price? ( either the demolished half the house or you bought extremely cheap or both
)Inwhich case means half your investment has been destroyed!
Cheers & goodluck.
Hi jenwren
Did you take out insurance when you signed the contract, I dont know about other states but in QLD it is up to you to insure the property.No I did not take out insurance.
The house had sustained some damage prior to my purchase. Insurance companies did not want to touch it.
They did not do too much damage and yes the house was extremely cheap.I was pushing for a fast settlement for exactly this reason, the other side have dragged the chain for a couple of weeks.
Jenwren
Once you signed the contract to buy the property not when you settle you become resposible to take out insurance on the property ( at least in Qld this is how it works)I am surprised your solicitor didnt mention this. From what I am reading you signed the contract then the house was broken into.Or was the house already a wreck and the breakin is just your way of trying to get the house for less.Jenwren
I’m in Vic and made another purchase recently. Once you sign a contract with your deposit you then have an interest in the property. As such it is in your interest to take out your own insurance.
Regards
‘ you will never go broke taking a profit ‘
I agree with the others about the insurance and I’m in WA. As soon as you sign the contract you have an interest in the porperty and it’s therefore your responsibility to take out insurance. WE also didn’t realise this until after a small incidence, ow that we know we do straight after a offer has been accepted.
You might have to wear this one.
I guess it’s a bit like taxation, do you realise this is also taken from the contract acceptance date and not from settlement as well. (That goes for buying and selling).
Regards
PKDoes the need for insurance upon signing a contract also apply to apartments/units – or only houses?
Ibglen– The same principal applies– as soon as you sign a contract to Purchase- You then have “an insurable interest” so you should take out insurance on the unit UR buying Cheers.
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