Building Inspection Report - Should I pull out?

I've just received the building inspection report tonight (still waiting on the pest one) & think some of the issues found warrant pulling out altogether but I could be just freaking out.

The main points are:

• Verandah post support brackets have been used to support one of the external load bearing walls at the rear of the bathroom when stumps should have been used. Verandah posts support brackets have been used to support parts of the floor frame under the kitchen when stumps should have been used. Because posts supports have been used where stumps should be used, I believe this work has not been approved by council or constructed by a licensed builder and may not have building approval.
• It appears that someone has done some home electrical work in the inner roof space above the kitchen, a double power outlet has been used and the back side is exposed and is therefore a safety hazard.
  
• At the time of the inspection broken asbestos was found lying on ground at the rear of the detached garage and on the ground under the house.
• Carport roof down pipe is dispersing the roof water onto the ground close to the neighbouring property and is therefore non-compliant. The roof water can disperse onto the ground as long as it is at least 3.0mt from a building and not closer than 3.0mt to any adjoining property.
• The northern side of the detached garage has been extended outwards and attached to the boundary fence with the roof extension dispersing the rain onto the neighbouring property, therefore this extension is non-compliant.

Interested in thoughts from people more experienced than I am as to whether this constitutes a 'run for the hills' scenario, particularly the work that must not have council approval.

I haven't rung the inspector to discuss yet as I'm still waiting on the pest report so I know the full horror story

 

This sounds like the house next door to my investment property. By any chance is this in Melbourne, Werribee

 

No, in Qld.

 

Two thoughts:

1. Run as fast as you can; or
2. How much is it going to cost you to repair?
3. Is the vendor prepared to have the faulty work rectified?

(I can't count)

 

I suspect the vendors are the ones that have done the faulty work in the first place

 

Did you ask the guy that did the inspection a cost to do repairs? I'm not sure how it works in qld, but in vic, to be able to sell a property in must comply with building regs, or state otherwise on the section 32.
I can tell you what I'm currently going through which is why i asked if its in Victoria. My neighbour has I believed just sold, or is still selling a home next door to my ip, they constructed an outdoor entertainment veranda/shed against the roof of my property on the fence line with gutters. They did it without permits, so now they have to remove it to comply with the safety regs, either the new owner if it sold, or the current owners trying to sell. Without doubt at a cost of a few grand.

 

@Toon - That goes without saying.

 

I haven't spoken to him yet as I'm still waiting for the pest inspection report, but will ring him as soon as it comes through.

That's what worries me. If a lot of stuff has been done without permits or is non-compliant, undoing or redoing could be a major issue, not even only in $$$ terms.

 

Haha, I guess so. I think it's a couple of tradies that have gone halves & done a reno though as opposed to owner occupiers doing a bit of DIY.

 

Update - massive relief, vendor has supplied a whole lot of approvals & final inspection certificates for the house extension & agreed to remove broken asbestos & fix dodgy power point in roof. Nothing provided re the garage or the carport, but I'm not as worried about these as they would only require some extra guttering & down-piping if any issues arose in future. Might be able to sleep again knowing I can proceed without fear of being ordered to pull down half the house

 

Buyer beware in QLD so they don't need to tell you anything.

 

@Toon
Buderim?

 

No, I didn't end up finding anything suitable on the SC before my pre-APRA rules finance availability ran out, but still wanting to get something there if I'm in the position to do so in the next year or two. You'll think I'm a total idiot when I tell you where I bought

 

Would just like to up this thread since we are in the same dilemma at the moment and thinking whether to pull out or not. Property is in Hoppers Crossing, Vic, 1km from the station near Mossfiel reserve.

The following were the results of the inspection:

Major structural defects:
-handrails and rear stairs show many signs of rust and weather damage which require further inspection by structural engineer to determine future viability for use
-exterior cement sheet to balcony shows areas of little to no fall, water is pooling toward the house. This requires immediate repair
- cracks to the masonry wall at the rear of the study indicate some settlement or subsidence/ soil heave has taken place. Further inspection by geotechnical/structural engineer..

Overall, property is said to be average but is structurally sound.

On a personal note, the odd thing about the house is the rumpus upstairs/balcony which has been added. It does not seem to be well-built. The balcony is where the water pooling is happening. As a result, there is certain fence/timber pergola that has wet rot and is recommended for demolition/replacement. There is also some moss build up in some parts of the roof. I am going to call the inspector tomorrow to ask how much is required to fix these things.

In your experiences, are these things enough to pull out or should just negotiate the price depending on the repair costs? Another buyer is waiting but then would also probably encounter the same thing..

Market seems to be hot at the moment, most of the properties are going for auction...

Thanks!

 

@Gwynneth It depends how much hassle you're willing to take on, and how much you can negotiate off the price. There's no right answer here, but if the deal still works and you're up for the mucking about, there's no reason to back out.

If there were major structural issues, that would be different.

 

Thanks, Jess! My husband and I are still comtemplating.I'm just wondering whether the vendor would be open to negotiate considering that there is another potential buyer. Also, the valuation from the bank is currently under review so if we are able to negotiate and send the bank the updated contract, will they ask for the report and do another valuation?

Just to give some context, here are some photos of what needs to be fixed

 

Rather than reduce the buying price, I would negotate funds to be held back at settlement otherwise you're going to be paying for the repairs with cash. That balcony will be expensive to replace, I'd estimate $20k just for that. It would be a big improvement though.
If they're not willing to negotiate I would walk. There'll be other properties just around the corner.

This needs a heap of money spent on it though so be prepared for that.

 

Sorry need to understand more, what does it mean to say holding back some funds prior to settlement? So for example if we already made a 10% deposit, some of it be returned and we will just pay in full at settlement?

Actually the vendor requested for a long settlement prior to this, 60 days so there can also be more to save and fix some urgent repairs.

I didn't realise balcony is expensive to replace!!! Not sure if that will add more value to the property? The stairs as well needs repair/replacement I think...

 

Hi @Gwynneth

Re what @Jess Peletier suggested re withholding funds, chat to your conveyancer about requesting an adjustment in your favour.

The market you are shopping in is an extremely hot market so it is possible that your request to negotiate will be met with a blanket no, but you don't know unless you ask. Chat to your conveyancer about a suitable approach. Keep in mind however that if you decide to proceed, the money required for repairs may have to come out of your savings that you might have had reserved for a deposit on a subsequent purchase.

I have found that houses in that particular street have significant wear and tear and structural defects issues.

If you decide to walk away, then pulling out of the contract on the basis of an unacceptable building and pest result won't be free... your conveyancer will still charge you a nominal fee, and of course you have already spent money on building and pest. However this is probably one to walk away from. Cracks to the brickwork near convex corners such as in this situation, tend to be due to subsidence issues which are expensive to resolve. If you decide to walk, don't be depressed when you inevitably see someone else buy the same house. Some people just aren't as thoughtful as others in their decisions and it will cost them dearly down the track.

 

Hi Jac,

Thanks for the explanation. Yes I know there are already costs even if we pull out of the contract. Even opportunity costs where we could have purchased a much cheaper property in Werribee...

Just an update, the agent suggested that he talk to the vendor to see whether they rectify the issue or reduce the price. He is very professional to deal with and not too pushy.

Will chat again with my husband tonight. There is always a drama whenever we purchase. lol

Cheers.