We are the vendors and at final inspection buyer has asked us to deliver a few things – fix blocked bathroom basin drain, missing keys, yard mowed (even tho its hardly grown from when they first bought). They are saying they will hold back $1000 at settlement. Can they do this? My agent sells yes they can. Also do we have to also agree or can they just state the amount?
What does your contract say? Take the contract and get advice from your lawyer
Hi Mrs C
I purchased a house last year in WA and the vendor hadn't fixed a few problems by last inspection. I asked my settlement agent to hold back 2K (what was a reasonable amount to have the problems fixed if the vendor didn't come through) and this helped push the vendor to fix the problems quick smart. We had placed the problems on the contract though and stated that settlement would not go through until they were fixed. Putting a $$ value on issues made the vendor move.
Might be easier to just get the problems fixed pronto to get the sale…
In my humble opinion…
Salukimel$1000 seems to be the standard amount that is held back – and you get back what they don't spend. I can't tell you what is supposed to happen – but when I purchased a property (in Vic), at the final inspection (the day before settlement), I found out that there were holes in the walls, and stains on the carpets that were very well concealed. My lawyer told me that because I'd exchanged on the property when it was in that state, I had very little option but to suck it up!
Don't rely on the advice of your agent – pick up the phone and speak to your solicitor!
thanks everyone. Yeah i thought about asking a solicitor but it will probably nearly cost me the same. My husband has just said get it done for the sale – we will just know better next time!
Ask who ever is doing your conveyance, if it is a solicitor or conveyancer they won't charge you any more for questions esp if it is going to save you $1000
Whenever we’ve sold, we’ve included a special condition in our contract that states the property will be delivered in the condition it is in at the date of the sale and that the purchaser has inspected the property before signing the contract. So if anything breaks after the contract is signed, the onus is on the purchaser to fix it. This has served us well when purchasers don’t test appliances at the pre-signing inspection. They therefore have no grounds to argue that an appliance worked prior to the date of sale and are liable for the cost of repairs!
Kate i'll have to remember that one, great tip!
The thing im actually peeved about is we told our sales agent that we had a couple of lights that have never worked since we moved in and all he said was 'oh you will just have to get those fixed'
We could have written those into contract as not working!!
MrsC wrote:The thing im actually peeved about is we told our sales agent that we had a couple of lights that have never worked since we moved in and all he said was 'oh you will just have to get those fixed'
We could have written those into contract as not working!!
Other option, if you were not prepared to 'just get those fixed' the agent could have informed the potential buyer that they were not working, and the property is to be sold with those faults in place…
Then, when contracts are exchanged, the agent simply gets the buyer to sign a 1 pager stating they are aware of the fact that the lights are not working… this would protect you as the vendor, and also the agent. Eg. Written eveidence that the agent disclosed all known facts that could influence the sale price of the property.
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