UPDATE - Repairing damage between purchase and settlement

Cathski · Jan 26, 2008 9:42 am

We bought our house in October and we don't settle until 28 February.

Recently the owner contacted us to advise that over Christmas, while they were away, a pipe located behind the bathroom wall leaked and some of the plaster and floorboards rotted and fell away. The hole in the wall is about 1 foot high by 1 foot wide and same in the floor.

The owner said he will fix the problem before we take possession, however what I'm wondering is - how will we know if it's fixed properly?

A builder friend of ours said the shower recess will probably have to be ripped up as well because no doubt it will have rotted under there too. So how will we know if that's been done? And if it hasn't been done, is there anything we can do?

Should we be advising our conveyancer and lender that there will possibly be a delay in settlement?

Maxie · Jan 27, 2008 10:16 am

Hi,

It's a while since we've bought a 'complete' house (we love building!), but I'm pretty sure you've answered your own question there......

Quote:

Should we be advising our conveyancer and lender that there will possibly be a delay in settlement?

The sellers will need to have that subsequent damage fixed prior to settlement, and you will need detailed documentation covering the exact extent of the damage is (a building inspection) and what has been agreed to. Another posiible way would be to obtain quotes for the work required and have that amount negotiated as a discount off the purchase price for you to repair after settlement.

But you will need to talk to your conveyancer very quickly - I'm sure they will be able to provide you with the correct legal advice.

hope it all goes well

royalblue · Jan 27, 2008 12:30 pm

A few thoughts...

Firstly, the fact that the seller contacted you and explained sounds like he/she is doing the right thing by you.

However, for timbers to rot takes far more time than a week or two. Chances are, the leak has been there for some time, probably before you bought, so you can expect it is a PRE-EXISTING condition. Whether or not the sellers actually knew about it before is subject to conjecture.

I'd be wanting an independant inspector measuring and quantifying the damage and providing an official written report. A few quotes to PROPERLY repair the damage will be required too.

Then its a matter of negotiation, I'd say.

Also, be careful of the increased risk of termite damage due to the water damage.

Ash.

Adrian B · Jan 28, 2008 9:56 am

Offer to go and help then u can see if there is any other damage

Yak_Chat · Jan 28, 2008 7:00 pm

I personally like to say - no problems - I'll do it - what do we both agree it's worth - - get a professional quote - take that off the price - and then once you own it - get it done just how you would like it done.

Then there is no argy bargy or doubt as to if it done properly. :shock:

My current house - during my second inspection I noted the HWS was peeing massive amounts of water out - like 1 metre stram in the laundry - the agent said - looks like you've got a new HWS.

I said - no thanks - I want to make this place eco friendly - let me choose.

So - I bought a house that had no HWS - I installed what I wanted - 2 weeks later - and I'm happy with my choice.

Philosophy
Once we decide to sell a house - pretty much our heart is out of it - so we do the basics - the direct opposite happens when we are about to or have just moved in.

Steve

FionaL · Jan 28, 2008 7:22 pm

I take it you haven't done your final inspection of the property? We've always done ours the day before settlement as advised by our solicitor to ensure we're getting the house as seen when contracts were signed. I would contact your solicitor asap and ask the best course of action.

Cathski · Feb 04, 2008 10:42 am

The owner has now agreed to get the bathroom repaired by our builder friend (so we know the job will be done well) however they have asked that it gets repaired after settlement so that they're not left without a bathroom for three days.

I'm nervous about doing this because I think it will leave us with no legal recourse, if for whatever reason, they decide not to pay for the work.

Yak_Chat

I personally like to say - no problems - I'll do it - what do we both agree it's worth - - get a professional quote - take that off the price - and then once you own it - get it done just how you would like it done.

Then there is no argy bargy or doubt as to if it done properly. :shock:

Steve

I'd like to go with what Steve has suggested and just take it off the settlement price, but the owners will be paying for it through their insurance so I don't think they'd be willing to drop the purchase price.

Do I have any other options?

Adrian B · Feb 04, 2008 11:27 am

Get it in writing from the owner and frm the insurance comapny before you settle. that way you have it in writing.

PhoenixStar · Feb 04, 2008 11:48 am

Cathski, you know what.... after hearing all the stories on here about what can go wrong and what you shouldn't accept before handover etc....

I wouldn't take ANY chances.... tell that you will hold off handover until it is fixed (by your friend) and then you can move in without any worries.
They don't want to be without a bathroom for 3 days.....LOL.... that's great, but YOU will be!!!!

Seems to me, they are getting out of it cleanly and you're the one who will have to go through the efforts of chasing up everyone and getting everything done...

Ultimately it's your choice, but let THEM be inconvenienced, NOT YOU.

When we sold our last place, we were very obliging with information, inspections etc etc, etc....to make sure that the new owners were happy, we provided more information,regarding the complete renovation that we had done, than was normally expected....even the real estate agent said we were too nice....

Make them do the work.... after all you're paying for a perfectly good house...or else I'm sure that you thought that when you signed your contract of sale, so why should you accept anything less!!!!!!

bec · Feb 04, 2008 12:06 pm

absolutely agree with phoenix

Quote:

The owner has now agreed to get the bathroom repaired by our builder friend (so we know the job will be done well) however they have asked that it gets repaired after settlement so that they're not left without a bathroom for three days

No way!!!
it is up to them to fix it and when you have inspected it
and accepted it, then handover occurs. If that takes longer than
your agreed settlement date then they are up for interest (this you could waive if nec but dont say anything till very last day, if it means you are having to spend extra money cos of the delay then the interest will
compensate you

last house I sold purchasers said bank cant settle etc is it ok
if we extend the settlement date for 2 weeks etc we said no its not
we have a mortgage etc, amazingly they settled that afternoon!

they can rent a portable bathroom thingie or use their neighbours, friends or parents or whatever, its unfortunate but youre in the right. they must be going somewhere, they could move out earlier if nec

they are lucky its covered by insurance and its great you know the builder

bec · Feb 04, 2008 12:07 pm

btw is this the only bathroom in the house?

Yak_Chat · Feb 04, 2008 12:25 pm

As per above.

Either have to taken of the house price, or get them to do it before you do handover.

Doing it afterwards you have no option other than hope it happens. (which is not the position to be in)

Talk to your solictor, (that why your using one) and get them to do their job for you, get it fixed or the price dropped before handhover.

I did a similar thing in my current place, the owner hadn't cleaned out the shed as planned - (said he needed 2 more weeks) but as I wanted to move in ASAP I said - I'll do handoverand you have 2 weeks to empty it.

We noted that in the contract, my solicitor said no comeback if I needed it - I said thats OK, as it was not a major issue anyway.

Guess what - he half cleaned out the shed over 3 weekends and eventually I just said to him forget it - leave it and I'll do the rest.

Steve

bec · Feb 04, 2008 12:33 pm

Quote:

The owner has now agreed to get the bathroom repaired by our builder friend (so we know the job will be done well) however they have asked that it gets repaired after settlement so that they're not left without a bathroom for three days

btw there also could be a technical hitch with this option
the insurance company would then be paying out on a house
owned by you not their insured
not saying that is the intention at all
but bare this in mind, ownership would be transferred technically
and may completely stuff this idea up

there is no way I would do it

PhoenixStar · Feb 04, 2008 12:42 pm

AND that's IF the insurance company accept your friends quote too???

What happens if they get their inspectors out (as they sometimes do) and get their own tradies in to do the job???? Then you are not sure of the quality of the repair at all...

Just be careful....

Cabinfever · Feb 05, 2008 3:15 pm

How about this: If the owners don;t want to be without a bathroom for three days, then delay the settlement date by, say, a week. The owners move out on the old date (as they would have anyway); the bathroom gets fixed; money changes hands; and then settlement happens.

I can't see any problem with this....

Yak_Chat · Feb 05, 2008 6:14 pm

Quote:

How about this: If the owners don;t want to be without a bathroom for three days, then delay the settlement date by, say, a week. The owners move out on the old date (as they would have anyway); the bathroom gets fixed; money changes hands; and then settlement happens.

I can't see any problem with this....

I can.....

I reckon the owners have another house settling on the same day - subject to this one selling - hence they can't / don't want a blank period - read in to this - they have no cash - and they don't want to be inconvenienced by the bathroom works.

As I said originally - get the money taken off the hosue price and do it yourself if always my preferred option. That way you are in control of what actually happens to your new house.

But time is running out ......

Steve

Cabinfever · Feb 05, 2008 7:32 pm

Sheesh. Well if they don't want their bathroom out of action; don't want to move out early; and don't want to change the settlement day, that doesn't leave much wiggle room.

Then I think the choices come down to:

- Money deducted from settlement price
Or:
- The old owners get it fixed before settlement and the new owners just deal with not using their own tradesman