Hi All,
I have just received the building report on a property I have under contract and it has highlighted quite a nasty and potentially costly problem with some plumbing. As the contract is subject to building inspection, is there any avenue for forcing the vendors to resolve the problem – or if they are unwilling can they just let the contract lapse?
Thanks in advance,
Apples.Hi Apples,
I hope you worded the clause a little tighter than that.
Assuming you did then you can go back to the vendor and say ‘it failed the building inspection and as such I won’t be proceeding with the purchase unless’ then either renegotiate the asking price and/or get the vendor to pay for the work to be done.
Handle these discussions carefully and you may be able to realise a better deal.
Ultimately if there are significant issues you may well be better off walking away and looking elsewhere.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Apples,
I’d hazard a guess that many many building and pest inspections uncover nasty problems. If you’re in the cooling-off period, you are able to (a) ask that they fix the problems at their expense and you pay the original offer; (b) get a quote for the cost of repairs and ask to take that cost off your original offer; (c) estimate in your head the cost of fixing the problem, and take an arbitrary figure off your original offer; or (d) walk away.
There’s probably some more options. Actually, there is another option. I had some issues with a BPI and just offered the original price anyway, because I wanted the place so much. I just didn;t feel like haggling, and was selling a place at the same time, and had someone doing the same thing to me, so in the end, I just went for the original offer. Depends on if you really want the place, or you think you may lose it. or the place I bought, it was only a few cosmetic issues.
For serious problems though- and plumbing sounds a serious one- options A-D might be the go :o)
kay henry
If you had a clause that made the sale subject to a satisfactory building inspection, and you feel that the extra repair costs would not be a good deal for you.
You can simply tell them that you will not be buying the house unless they
1. Fix the problem…or
2. Reduce the sale price to something you are happy with.It is my understanding that you are quite within your rights to cancel contract.
They do not have to come to the party though.
My first IP purchase building inspection uncovered major foundation problems, and the sellers wouldn’t budge on the price.
I bought anyway, cause i thought it was still a good deal. But I could of cancelled.[drummer]
lifexperience
Thanks a lot to all of you. Your ideas have both confirmed what I already though and added some extra insights that I didn’t consider initially.
This has been a big help.Cheers,
Apples.
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