B&P Inspection Defects

Hi All,

I recently got premium building & pest inspection done for 65 years old property. The inspector did not inspect roof timber frame for building & pest report due to low pitch roof.
Maybe more surprises waiting for me...

The report came back with lots of defects which classify by inspector's as minor.
Some defects I have known about it but the below defects concerned me and would like advise how should I go from here.
1. Downpipe missing
2. Downpipe disconnected
3. Water damage at the Entry, Laundry ,Bath & Bedroom ceilings and also on the entry wall
4. Some sagging ceiling
5..Security doors lock not working
6. Rot at the base of timber post
7. Workshop/Shed electrical connection potentially not RCD protected.

The offer contract is a standard Reiwa comes with major defects B&P inspection, finance clause, limited warranty on plumbing, electrical & gas.

Can I renegotiate the offer price or maybe get the seller to fix the items?
I am waiting finance approval.

Thank you

 

Given the age of the building, it's pretty normal to expect a lot of defects. I don't think I have ever inspected any buildings over 30-40 years old without any defects. A lot of the defects will be the result of changing building standards (e.g. RCD protection of circuits) or general wear and tear (timber rot).

Probably best to re-offer, but just be aware that the vendor may claim that the building is old and that a lot of these defects are to be expected.

 

Seems pretty normal for a 65yo property. The roof leak is the main issue.
1 and 2 suggest a blockage in the stormwater system. MAy be associated with 3.
4 depends on degree of sagging. Normal in properties of this age.
5. Replace lock $50
6. Is the post structural? Maybe $200 to replace.
7. Not necessarily a defect, May predate the requirement for rcds.
7.

 

Doesn't hurt to try re-offer.

But can you even cancel the contract based on B&P? Standard REIWA contract only covers major structural defects. Those don't sound like major structural, seek the advice of a solicitor.

If you can't even rescind the contract, your negotiations won't hold much weight (assuming the seller knows their rights).

How much would it cost to fix?

 

Thank you for the reply.
The roof is color bond.
If I want to re-offer, what steps I should take. Do I send email to selling agent or conveyor listing items?
I have already signed the offer contract, I don't think I can walk away.

 

I am planning to re-offer but I have never gone down that path before. I am quite naive in property investment. Looking for advise how to deal with this situation.
I don't think I can because the inspector listed as minor defects and standard REIWA covers only major defects.
I don't have cost yet. The roof, gutters and ceiling will be expensive to fix. Since given the age of the house, the inspector mentioned it might be asbestos.

 

Not if on contract condition is subject to structural defect

 

You can try but nothing here is structural.

 

You probably would want to first get an estimate from some experienced tradespeople on how much to fix all of that... Even if its just ballpark.

If say around $10k, maybe you could go to them and offer a discount of half that and see if they accept.

When I purchased one of my IP, the roof and gutters were found to be leaking in multiple places on the B&P . I got a quote from a roofer on full replacement (which actually came back less than I expected), so I knew where I stood. Then went back to the vendor requesting 50% of that, and they accepted.

But would depend on the market at the time, or how much the repairs could be. If you came back with "hey I want $50k off" on a $400k property, the vendor is probably going to tell you 'no way hozay'. If it's like up to 5k vendor might go "I don't want to deal with having to go to the next buyer, ok"

 

Thank you everyone for

Good to know. When you crash on the finance clause, you mean you present finance fail letter to agent? What are the consequences of that, Will it make bad credit history and hard to get loan in future?

 

You will probably have to prove that you lodged an unsuccessful application to get finance. Probably need a letter from the financial institution rejecting your application.

My daughter crashed a contract after the B&P report (undisclosed termite damage). She was required to provide a copy of the report to the vendor’s solicitor (QLD).

 

Thank you Marg

 

What did you say to the lender for it to be rejected?

 

Interesting and the agent didn't request for a bank letterhead? Contract didn't require this?