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Fixing issues pre-settlement as agreed

Discussion in 'Repairs & Maintenance' started by Thorm, 4th Apr, 2016.

  1. Thorm

    Thorm Well-Known Member

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    My question is, should i push to use/quote my choice of handyman or let them fix it with their own choice?

    Backstory: Before any offers were made, I asked a PM to inspect a property for me. They've gone through the house and pointed out several things that needed repair. The REA was present at the time and has gone out and gotten quotes for some of these problems.
    So a few days ago, we made an offer and after some negotiation we have a signed contract and they've committed to repairing most things before settlement. The REA has given me a list and its not the greatest quote, but it's a start (it list things to repair). It has a minimum required and recommended. Obviously the vendors are going for minimum, which i can understand. I've asked my solicitor to add these as special conditions and request an amendment.

    Basically, imo, the minimum doesn't cover what is needed. Or i should say, as it's written on the quote.

    eg. Water leakage through the floor from shower.
    minimum: replace shower base, redo plumbing, re-tile shower area.
    recommended: rip apart the bathroom, replace floor as needed, replace shower, redo waterproofing, new bath and vanity, new tiles throughout.

    I'm ok for the minimum here, as long as it fixes the problem. But there is no mention of say, waterproofing, which leads me to believe dodgy job may be done. The quote also says they're not a certified builder, but a supervising builder will certify once complete.

    I've organised a B&P on Friday which i'll be present for. I'm sure heaps of things will come up and a cost will be associated with that which i can then use to negotiate further. But if they've committed to fixing this list we have agreed on, i want to make sure it's done properly.

    I'll add that this is my first IP, so i'm fretting and over analysing every decision :)
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    You have already entered into the contract so what were the terms relating to this?
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Where abouts is the property Thorm? Each states rules vary a little bit in terms of sales contracts.

    Essentially though, I doubt they have to do anything. You've agreed to buy the property, so anything they'll do as part of the sale is a bonus.
     
  4. Thorm

    Thorm Well-Known Member

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    QLD. I'm aware this is a bonus at this stage. But at the time of the contract signing, i didn't have this list and just a verbal agreement. My impression was that this is more of less what B&P is for.

    No terms at this time. Solicitor is requesting the contract amended with this info. I'm aware they could say no, but i'm only asking to add what they've quoted for and not trying to play games with them.
     
  5. Nemo30

    Nemo30 Well-Known Member

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    The B&P is so you know the condition of the property you are buying and can make an informed decision on its value and therefore your offer.

    It's not there to get a discount after the fact.

    This is something that annoys me. Personally I think when you buy a property you are buying as is. Your offer reflects the condition of the property as presented. Sure you can try your luck and see if the vendor will fix things, but I know I'd tell you where to go (unless the offer was enough to cover the cost of fixing and still be ahead).
     
    Last edited: 4th Apr, 2016
    wylie likes this.
  6. Thorm

    Thorm Well-Known Member

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    Isn't that exactly what B&P is for? Vendor can tell me to go jump if they want, but if you find out it costs too much to fix then the only option would be to walk away from the deal.
     
  7. Marg4000

    Marg4000 Well-Known Member

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    The B&P is intended to discover UNKNOWN problems, not evident at the time of signing. Problems you are aware of, and obviously took into account when making your offer are a different matter.

    You have already negotiated on them, so I doubt you could use them to crash the contract in Qld.
    Marg
     
  8. wylie

    wylie Moderator Staff Member

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    I see the B&P as a way to find out that what you can visibly see is what you get. That there are no hidden structural problems or things not visible. I don't like how people think it is a negotiating tool. You have a fair idea that a 25 year old shower likely leaks or needs replacing so factor in the cost to update into your offer rather than make a higher offer to get the house tied up and then use the B&P to screw the vendor down.

    As a vendor, unless I was desperate, I would tell such a purchaser to go jump. But obviously some vendors have no choice but to give in and take a lower price, especially seeing the buyer has effectively halted all momentum by taking the house off the market.
     
  9. Thorm

    Thorm Well-Known Member

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    Ok thanks. Maybe i put too much info in my first post.
    I'm not trying to screw the vendor down. We agreed on the price, and at the time I pointed out some problems I saw with the property. they agreed to fix issues I pointed out after some quotes. I signed the contract before the quotes arrived, basically relying on the B&P as fall back and confirm the issues seen. So i have the quote they've done, it's a great start. If they fix the issues listed, im not looking to reduce the price further. Im wondering how to make sure the job they do is a quality job and not a shonky one.
     
  10. wylie

    wylie Moderator Staff Member

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    If they have agreed to pay for the work before signing the contract, then they obviously are aware they need to hand over cash to a tradesman. You want more control over how the job is done.

    Why not ask for the quote amount in cash and then you either use their tradesman or one of your choice so you get the work done to your satisfaction?
     
  11. Thorm

    Thorm Well-Known Member

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    That's probably the best choice.
     
  12. dabbler

    dabbler Well-Known Member

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    You have 3 choices (well, really 2 )

    1 You ask who they will use, and accept what is proposed, or counter with what you want
    2 You ask for an allowance at settlement
    3 Ask if they will pay your selected trades

    With 1, they may try and do it cheap, I had a vendor that got the agent to use trades they used in a similar situation, they were ok with us checking on the works and progress.

    2 Well you run the show, you have to know the trades, benefit is you can hold them to warranty later as well, the price can go up on you if other problems uncovered.

    3 not likely

    I prefer 2 myself with access to fix during settlement, works best when I can do the work or know good people, downside is vendor will need to be happy you won't get someone who botches things, so they may not allow your trades or you to work on the place.


    Not sure about you, but B&P for me is never done till we agree on a price in principle on the face of things, if further issues arise.....

    So as a vendor, you can decide if you want to sell, or not, and if not, you now really need to fix the issues or disclose them, agent must disclose known problems, also next person likely to raise same issue/s.
     
    Thorm likes this.