Hi,
Settlement occured on my property i sold in SA at the end of January, there was no formal inspection other than a family member of the buyer looking over the place. They requested some minor repairs which were completed.
A week after settlement i receive a call from the agent stating that the purchasers want compo as the garage has some broken timbers in there. They are claiming they could not get access to the shed to inspect as it was too cluttered and therefore want compensation. Later in the day they said they have changed there mind and will be putting up a new shed which they want me to pay a portion of.
Am i correct in believing im not liable as they did not inspect the shed at there own choice? There was no request to make the shed more accessible to inspect more thoroughly. In short they did not do a thorough inspection which is no fault of mine.
They are now threatening legal action.
Thanks in advance this is a great site.
You have no liability.
Inspection took place with no adjustment pre-settlement, and the properties full price was paid on settlement.
The property remains theirs in name, liability and ownership, and any deficits or damages that were not dealt with pre-settlement are their concern and not yours. If the place burnt to the ground on January 30th and they hadnt claimed fire insurance yet, they would be totally liable for the rebuild costs. And yes .. occasionally this actually happens.
They can take it to a court, but thats the lay of the law. You'll win and be able to claim out of pocket for the inconvenience.
As this is strictly a legal matter once it heads into arbitration, i make this only as an interpretation of the law and not a full recommendation. For proper arbitration of this matter you should always seek legal advice.
Doesnt anyone realise THATS what a final inspection is for???
Thanks alot for your reply xdrew i really appreciate it. Ive just got off the phone with a property lawyer and they have said the exact same thing.
The Property Lawyer stated that it is no fault but their own if they did not thoroughly inspect the house and that im in no way liable for future problems arising after settlement.
There was no final inspection and i received over a dozen txt messages nagging me to do a few extra repairs which were not stated on the contract, which i did do as good will pre settlement.
It looks as if they are taking the angle now of saying i would not allow them or they could not gain access to the shed which is false.
Again i appreciate the reply as these issues cause undue stress on the family and getting the correct information eases the tension.
The court would no doubt ask them to produce written evidence of your refusal to allow them to inspect the shed. Since they will not be able to produce such a thing, they do not have a leg to stand on.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Gees I’m surprised they are not requesting a new kitchen as well. Some people love testing the boundaries.
ill keep you posted on any updates, thanks to all
Thanks alot JacM aswell, the inspection was carried out by a family member that wasnt a qualified buidling inspector. There is no paperwork for anything and they didnt even check the roof space, electrical appliances, inside cupboards and more.
The repairs that were agreed on in the contract (6 retaining sleepers) were not specified either as to which 6 they wanted replaced as there was about 60 to chose from. When i rang their so called inspector they stated to replace them all so its been a sham from the start.
Was it just that fact that the timber frame structure supporting the garage was broken? Or is broken timbers just broken pieces of wood?
They are saying its structural although its a steel frame shed so I’m not sure. I think the timbers may be there as a base to mount gyprock. The damage is old termite damage. They pulled gyprock off so who knows what’s under there. Shouldn’t make a difference in regard to their claim though I believe.
HI Vista,
If I was in your shoes I would go back to the property lawyer and get them to write a "get lost, you stuffed it, my client has no responsibility' letter.
Pay a few bucks and send the purchasers on their way and regain your peace of mind.
Hi Derek and thanks for your reply.
The latest news is they have emailed the agent asking for my contact details which where denied and said that if i dont contact them regarding the cash they want within 14 days they will be calling the police(yes the police) to report apparent illegal wiring in the shed aswell as the power company and taking me to the small claims court. These "threats" sound very loose and seem like a bluff however ive decided to be proactive and will meet with the property lawyer today to discuss the issues in greater detail at least for piece of mind. As you all have said and i also agree that im in the right i just want to be prepared if things escalate.
Cheers
I wonder how they go bluffing at poker?
VistaView wrote:they will be calling the police(yes the police)ROFL….
Fred!! you used to be a sparky. Get over to this place and check it out… take a SWAT team with you it looks serious.
Aren't they demolishing this shed ? Seems like a case of " oh I forgot to check the air conditioning worked, the taps worked the hot water service worked and forgot to walk into the shed.
Its getting to be more of a joke as each day passes although still causes stress on me and the family. Good thing is i have these claims/threats in writing for legal reasons.
Im really not interested in having to go to court at all.
The timber beams their "expert" said were damaged and structural was also wrong. The timber are simply battons to mount the sheet metal for the walling and roof on. I sought information form a personal friend who is a "qualified builder" .Just another hole in their story.
Im meeting with the Lawyer in a couple of hours and ill post the outcome for your info.
ok, well after meeting with the Lawyer ive found out the following:
– They waived the cooling off period which was before they inspected the property so legally they purchased the house at it was(not inspected) and the work i completed for them before settlement did not legally need to be done, although at that point i wasnt aware of this. So even if they found the house was completely eaten out by termites they had no legal comebacks.
Ive requested the paper trail from the lawyer in case their threats of taking things further do in fact happen.
As long as you made no representations it will be difficult for them to get anywhere. Of course they could still sue you, but this doesn't mean it will go anywhere.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Agree with Terry
Suing on representations is hard work, unless you are suing marketing companies and real estate agents for mis representations. They put it all over the advertising.
D
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
Email Me | Phone MeProperty Lawyer & Town Planner
*update*
so after meeting with the Lawyer Friday night i was feeling slightly more contented until i get a knock on the door. It was the Purchaser of the property and it appears that his son in law has been driving the around looking for where i live. I have an easily identifiable work car(logos etc) so they've seen this and tracked me down. This really annoys me ALOT. So the father turns up at 2pm on a Sunday and wants to discuss the house purchase. Ive told him ive sought legal representation and he informs me he doesnt want to go down that path. He then tells me that they didnt inspect the shed as the person inspecting "got the impression" i didnt want anything moved. After informing him the lawyer has stated that i have no liability or responsibility in this matter and after some general rubbish talk about how disappointed his son in law is blah blah blah he then said they were no longer persuing myself but will now go after the real estate agent. I also informed him that the building inspection was rubbish and there was no check of appliances, cupboards, plumbing etc so if there was an issue with anything in the house he wouldnt have known anyway until after settlement in which he responded by saying "this is the result when you do not get a proper inspection and use amatuers". So we'll see what happens from here.
Isn't it great that we live in a society where some people always look to blame others.
They have drawn a blank with you and now they chase the real estate agent.
The heart of the problem lies in the fact the purchasers did not get correct legal advice, did not use a qualified building inspector all to save a few bucks.
Really, some people should not be left alone to buy milk from the corner store.
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