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B and p sold by agent

Discussion in 'The Buying & Selling Process' started by Whitecat, 12th Apr, 2016.

  1. Whitecat

    Whitecat Well-Known Member

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    "The owner is not prepared to pay for the building & pest inspection however someone has just had one completed by X from X Inspections and I'm sure he can on-sell it to you if you are interest, his number is"

    Auction sale.

    What is going on here? The agent does this quite a bit I've noticed. Of course it's probably to provide a favorable building inspection but it also seems like a money making thing would the person who allegedly got the building and pest done be ok with it being on sold to competitors doesn't seem like it to me I think this is a bit scammy and something between the agent and a b&p mate
    Your thoughts?
     
    Last edited: 12th Apr, 2016
  2. Nick Valsamis

    Nick Valsamis Well-Known Member

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    It could be that another buyer had done it already but backed out and the agent is helping you save money and speed things up.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Are the protections afforded under the b&p to the original purchaser assignable to anyone else who relies on the report?
     
  4. Nemo30

    Nemo30 Well-Known Member

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    In Canberra, the vendor has to have a B&P report done prior to listing a property for sale. That report is then made available to anyone interested.

    Once sold, the buyer has to reimburse the vendor for the cost of the report at settlement.

    The buyer is also welcome to get their own, but they still need to reimburse the vendor.

    I really like this approach. Also stops ppl trying to negotiate the price down after their offer has been accepted as you are making an offer with everything known up front.
     
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  5. Whitecat

    Whitecat Well-Known Member

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    The agent has done this on a few properties.
    It's an auction
     
  6. Marg4000

    Marg4000 Well-Known Member

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    In Queensland it is up to the buyer to pay for the B&P inspection. If you are uncertain, you all have to pay for your own one.
    Marg
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Can you sue for breach of contract if you are not a party?
     
  8. JacM

    JacM VIC Buyer's Agent Business Member

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    A very good point. Could cost you plenty down the road for the savings of a measly $200 or something on the cost of the report.
     
  9. Whitecat

    Whitecat Well-Known Member

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    I'm not going to go for this report. nor would I trust it even if it was free I've seen some really bad building and pest inspections set up by agents with their building inspector mates.

    However given that the agent seems to do this on a few properties ot and say that it's done by another buyer, don't doesn't anyone smell a rat here? Why would another buyer want to share? Was there even one done by someone else?
     
  10. Greyghost

    Greyghost Well-Known Member

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    Nope. I've obtained a b&p from another potential buyer. Agent gave me their number.
    On another occasion the agent obtained it from the other potential buyer and forwarded it to me (email).

    Sometimes after the b&p a buyer will no longer be interested due to issues in the report. They might be a rookie investor or not have a deep enough knowledge of what is entailed in such repairs so if anything other than superficial issues arise they sometimes run..
     
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  11. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    NSW announced last month it is changing laws to require a report to be shared or available to be shared. There are a few startups who facilitate this using different models for fees. Govt wants all agents to offer some form of process so that auction and private treaty buyers arent all having to pay.

    The issues of legal recourse is a fair question - Under some models this could be a concern and the buyer needs to be protected. For an insurer the user of the report can really only be one final buyer so that shouldnt pose a concern. The integrity of the report however could be questioned.

    Greyghost raises a fair concern about defects noted. Some users of the report may not understand the issues. I know all P&B I have had were explained to me but when a report is shared that wont likely occur. I see issues.
     
  12. dabbler

    dabbler Well-Known Member

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    This is a better idea, apart from then you have to pay for it when everyone has been able to use it !
     
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  13. Bran

    Bran Well-Known Member

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    I've bought someone else's B&P, a bit cheaper than the primary report in light of the company not having to physically attend again.

    It all had to be above board to meet their insurance obligations. What I didn't get was a chance to attend the inspection (Which I don't always do anyway).

    Edit: This came about because I phoned the company and they said they were already inspecting it the following day. Was pre-auction, and perfect as I was trying to keep a non-interested profile. Didn't work...
     
    Last edited: 19th Apr, 2016
  14. wylie

    wylie Moderator Staff Member

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    I've never seen a clean report and don't believe B&P inspectors are "mates" of agents or would change anything in a report for an agent. They are professionals and would soon lose their business if they started doing dodgy reports. Some people see things (conspiracies) that simply aren't there.

    My mother sold houses and every agent I have ever known has dreaded the building inspection because they all sound like the house is falling down. Many contracts were crashed when there was nothing much wrong. It's happened to me numerous times (or we've discounted to get a sale over the line due to nervous buyers not understanding the report). We have also bought well due to grabbing a cracker of a house that had a bad B&P that scared the buyer due to how badly it was written. No major issues but sounded like it was crumbling.

    Every agent I know did have preferred inspectors who would advise purchasers verbally that "this house is good for its age" even though the report made it sound like it had problems.

    I say bring on the vendor doing the report and allowing purchasers to see it. We did that with our last auction. Those who see some sort of conspiracy can get their own if they feel the need.
     
    Bran likes this.