Hi,
I put an offer on a property. It was accepted and I got the building inspection done.
One of the bedrooms was built as an extension. The problem is it was built directly onto the ground with no stumps. This is against regulations and can cause termite problems.
Should I push down the price of the property? How many thousands should I demand? Or do I quit while I can????
Was the building inspection a condition on the contract? Eg is it a clause to terminate the contract?
If yes, I think you have to make a decision. Do you still think the property is a good buy as per offer? If not I would either offer a price that is attractive to you or pull out. If you think the price is good, you can still try to negotiate it down a bit more.
If the building inspection was not part of the contract, you have a pretty tough stand. You may need legal advise. Basically you can only get out of the contract (and lowering the price would create a new contract) if you can show that the vendor and/or agent acted fraudulently. You now need to know when and who did the extension. Was it done illegally, etc.
You have to decide how many headaches this is likely to cause and if it is worth your while.
Good Luck
Hello,
Yes the building inspection was a condition of the contract. That is property purchasing 101. So I can legally stop the contract easily.
Does anyone have any experiences with this sort of issue?
Thanks!
What do you mean with experience?
You can just inform the agent in writing that you want to terminate the contract because the building inspection highlighted structural problems. You do not even have to tell them what it is.
Do your numbers and make a decision.
Be it be the right one.
ask for a reduction in the purchase price or terminate the contract.
a basic guide to the price reduction may be the size of the extension x the construction cost per square metre, plus any repair work required after the removal.
I think basic construction costs start at around $5k per ‘square’. A builder could tell you the going rates.
A ‘square’ is 100 square feet (I’m an old bastard so I think in imperial measurements), which is approx 10 square metres.There will be another fantastic deal to find this afternoon, or tomorrow.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Thanks for your tips LA Aussie. Regarding rebuilding I would also have to factor in demolition costs as well as loss of rent. I will put in an low offer and hopefully the vendor gives in and sells it cheap.
If not there are plenty of fish in the sea.
Cheers
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