Hi all
Has anyone had any experience as a seller/buyer or in the legal field as to what is the best course of action to take where a problem has arisen that requires building works. ( refer original post “Building Inspections – worth it”)
As the buyer my companion needs to be covered to ensure the problem is fixed. The scope of works have been defined in a building condition report commissioned by buyer – major leak in at least one possibly two bathrooms in elevated home. Possibly effecting downstair rooms. Sub floor works likely. Home is only 10 years age.Thus far we have been given several pieces of advice:
1. Owners fix problem and maintain purchase price.
( However as buyer you have no control over quality of workmanship and has it been fixed ??)
2. Settlement goes ahead at agreed purchase price less negotiated rate to have works done.(Owner obviously wants cheapest quote – no guarantee of can of worms extra costs might be involved that purchaser would have to bare)
3. Settlement goes ahead but withold a provisonal sum that allows for the works to be undertaken to fix problem. Cost of fixing problem deducted from this.
( Buyer has control over works – can of worms explored when builder gets into areas involved. But this would be like a blank cheque if i was the owner !!)Any ideas gratefully appreciated.
[
]Regards
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson
We’ve agreed to hold back certain amounts in a sale contract, subject to us fixing the problem within 30 days from settlement. The buyers then tried to hit us up for other things that were not listed on the contract, so you can probably guess what we told them. They have to agree to release the money though.
If you are the buyer, and the seller is willing to agree to hold back $x, make sure that it would be enough to cover contingencies, but also spell out EXACTLY what you want them to fix.
Cheers
MelSit down with your solicitor and discuss it with him or her. They are the experts and you are paying them enough to act for you[
]Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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