Delays in settlement due to inspection issues

Discussion in 'Legal Issues' started by robertd, 3rd Oct, 2017.

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  1. robertd

    robertd Member

    Joined:
    20th Sep, 2017
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    Location:
    Bangkok
    We are about to have the pre-settlement inspection for my house which sold at auction. The agent is suggesting that they might check all keys are working. She said that a lock to the outside screen door is not working. The main door behind the screen door is ok- it locks and unlocks as expected.

    If they say that I have to get a locksmith for that screen door can I tell them no? If all the locks on all the main doors in the house are ok should this be sufficient to proceed with settlement.

    In general, are issues found in pre-settlement inspections negotiable by both parties. Its not just the new owners calling the shots is it? After all Im the one holding the cards surely... i.e. the 10% deposit and the house

    thanks
     
  2. Dan L

    Dan L Well-Known Member

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    Location:
    NSW
    As a vendor are typically under an obligation to preserve the property in its 'present condition and state of repair' having regard to the condition of the property as at the date of exchange of Contracts, subject of course to 'fair wear and tear'. If something breaks or is damaged therefore between exchange of contracts and settlement, you should fix it.

    If the lock was busted before the Contracts were entered into, should you still fix it? Strictly speaking, probably not.

    As a general rule, as a Vendor, I leave the property in the condition that I expect to find it in as the new purchaser.

    As an aside, I wouldn't necessarily agree that you hold all of the cards. After all, they have the remaining 90% of the purchase price ready to hand over which i am sure you are keen in your bank account.
     
  3. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    Second Dan's opinion.

    Auction contract, as is, where is at time of the hammer fall.
     
  4. robertd

    robertd Member

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    20th Sep, 2017
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    Location:
    Bangkok
    so are you saying that if the lock wasnt working before exchange of contracts then Im not obligated to fix it?

    thanks
     
  5. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

    Joined:
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    Posts:
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    Location:
    Brisbane
    Correct. Onus on the buyer to show that it was working then. Either way it is not worth the legal fees to fight over.
     
    Dan L likes this.

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