Is this a financial disaster?

Hi all,

I've come across a residential property that is being sold as mortgagee in possession.

The house is fully constructed but it has quite a few structural problems that will require significant costs to rectify.

The real estate agent cannot produce any plans or documents regarding the property apart from an engineers report outlining all the problems.

it is my understanding that as a house is constructed, the various trades that perform their works sign off on things such as the pouring of the slab, water proofing etc. Then in order to obtain the final building inspection approval, the certifications for the various stages are to be submitted.

My question is, if these certificates cannot be obtained, how would the final approval be granted once the defects have been rectified?

 

More important that that @Summersky is that the builder typically provides a warranty against structural defects. That's something you might want to check out.

 

its these sort of sites and deals that if done correctly or well can make you a mint!

especially if you are in the know

like termite damaged properties, most people run a mile but if it was just one piece of timber that could be replaced in a few hoursfor $500 and you can get $20k off it,

 

Just ring up the local council and ask the question,most will have slab frame inspections,but a lot don't have the final signoff..

 

Other issues lie with plumbing, electrical works, survey/setout, waterproofing etc.

If you're a competent builder with trades behind you, by all means go for it. Otherwise watch with interest.

 

ive always wondered, other then tearing up the slab, how would anyone know the quality of the slab if its already laid, or any underground pipes or electricals?

or do they assume that if the electrics work it works, and are willing to take the small gamble on it on the assumption they get the project at a hefty discount?

 

@TMNT Destructive or non-destructive testing (core holes vs xray / ground penetrating radar)? Cameras down hydraulic services
Ie lots of $ thrown at consultants

 

one of the brokers on here might be able to comment but from my understanding finance might be a bit of 'fun'.

 

@Summersky - how did this pan out? Has it sold?