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Pre-settlement inspection faults

Discussion in 'The Buying & Selling Process' started by mnrvermaak, 8th Jun, 2016.

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  1. mnrvermaak

    mnrvermaak Member

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    Hello,
    We are settling in a couple of days time. I did the pre-settlement inspection and found a few stuff that is not working etc. The previous owner has moved out already so the place is empty.

    Mostly a few taps not working, the retic missing a few bits and some rubbish left in the shed. The special conditions on the contract states the place will be clean and all plumbing and retic working.

    I think I made a mistake by using the conveyor that the real estate agency suggested. It is the same conveyor that the seller is using. Next time I will use my own solicitor.

    That being said, I informed both the conveyor and the real estate agency of the faults and so far received no confirmation that the faukts are being attended to.

    Come settlement day and it is still not done, what can I do. I am in WA.

    Thanks
     
  2. samiam

    samiam Well-Known Member

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    If I were in that situation, I would get a generous quote from cleaner and plumber, then inform my conveyor that I will be settling minus that amount. not sure it would make much difference though..
     
    Last edited: 8th Jun, 2016
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  3. thatbum

    thatbum Well-Known Member

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    Wow you're using the same conveyancer as the seller? Did you sign a waiver for that or anything?

    How far away is settlement? Basically, your conveyancer should be advising of your options as per the joint form of general conditions, which I imagine apply to your purchase.
     
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  4. mnrvermaak

    mnrvermaak Member

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    Yes, same conveyor. In hindsight not the best move.
    Settlement is in 2 days. We could probably change conveyors but the faults etc is probably only $500. Not the end of the world but would be better if we could get it off from the purchase price.

    Can they stop me from settling to a lesser amount?
     
  5. samiam

    samiam Well-Known Member

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    I think that's what you normally negotiate through your conveyancer/ solicitor...
     
  6. Perthguy

    Perthguy Well-Known Member

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    I don't have an issue with it if they are a good conveyancer.

    Yes, they can stop you from settling for a lesser amount. The contract for the amount agreed. There is a process in the contract for rectifying faults. Your best move at this stage is to advise your conveyancer to delay settlement until the faults are rectified. Put it in writing.

    I have been through this before in Perth. Basically, the buyers of one of my properties, under the supervision of my real estate agent, made a list of demands then advised their settlment agent to settle for a lower amount. I told my settlement agent to let them know that a) it is illegal to settle for a lower amount and to b) delay settlment until they agreed to a the full amount.

    The "faults" in my case were very minor so I fixed them and settlement went through on time. This is how I learned what the proper process is for rectifying faults :p
     
  7. mnrvermaak

    mnrvermaak Member

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    Thank you for the answer. If I delay the settlement due to the faults not rectified, will I be liable for penalty fees for delaying the settlement? No use having to pay $500 in penalty fees to save $500 for the faults
     
  8. Perthguy

    Perthguy Well-Known Member

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    This is something you need to talk to your settlement agent about and work within your contract.

    In my opinion, if it is a condition of the contract and the conditions have not been satisfied then it is the seller delaying settlement, not the buyer. In that case, it is the seller who is liable for compensation.

    https://www.commerce.wa.gov.au/sites/default/files/atoms/files/propertysettlementfactsheet.pdf

    In my opinion, the seller is legally obliged to comply with the contract. If conditions are not met they are at fault. You could call the agent and let them know:
    a) the offer and acceptance has conditions that have not been met
    b) ask the agent to let the seller know that you expect the conditions to be met

    Hope it works out.
     
  9. mnrvermaak

    mnrvermaak Member

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    Thanks for all the answers guys!