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Settlement issues

Discussion in 'The Buying & Selling Process' started by dan2101, 4th Nov, 2015.

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  1. dan2101

    dan2101 Well-Known Member

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    Just a quick rundown. Have a property due to settle on Friday. Roof had been leaking. The vendor refused a reduction in the purchase price saying they would fix the roof themselves.

    I spoke with the property manager who gave me some inside information and said she had an initial quote to fix the problem that came back at $3000. The vendor was not happy with this so got another roofer to have a look who said nothing is wrong with the roof!

    So I'm at a loss. What happens now with settlement if she is refusing to fix it and obviously I want it fixed?

    Thanks for the help!
     
  2. James Bond

    James Bond Well-Known Member

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    What price did you exchange contracts at and was this mentioned in the contract? I don't see that you can change this price at settlement unless due to some sort of unlawful non-disclosure or untruths on the contract.

    JB
     
  3. Ozzie in Texas

    Ozzie in Texas Well-Known Member

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    When and how did you discover the leaking roof. Was it identified in your inspection report? Did you agree to repairs being made? I agree with James Bond. Without further information.....and based on what you have told us so far....I don't know how you can enforce a change to settlement price at this late stage in the game.

    If it wasn't covered in the contract previously, you've essentially bought "as is". The seller isn't obliged to do anything other than their good will......if not contractually required.
     
  4. Azazel

    Azazel Well-Known Member

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    If they've committed to fixing it themselves, would possibly need another quote for a 'best out of 3'.
    Might be worth sending someone to do a quote yourself.
     
  5. Tekoz

    Tekoz Well-Known Member

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    So what about if the lowest quote is accepted by the vendor but not necessary the best work ?
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Get quotes that you are happy in presenting to the vendor. It's less important if they're cheap or not but capable.
     
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  7. dan2101

    dan2101 Well-Known Member

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    Sorry I was probably a bit vague.

    I had the building inspection done during the cooling off period when the issues with the roof were identified. My conveyancer liased with the vendors and we agreed to proceed and go unconditional with the guarantee that the roof issues would be fixed prior to settlement (I have this in an email between the conveyancers).

    After getting some inside knowledge from the existing property manager it was revealed that an original quote to fix the roof came in at 3k (vendor does not know I have this information). The vendor then got a subsequent quote which says 'for the age of the roof it is in reasonable condition and I cannot identify any issues'. Obviously she passed this second quote onto me (probably got a friend to say that!) and said 'nothing needs to be done'.

    So..... Where to now? Probably too
    Late to get it fixed with settlement on Friday should I aim for a reduction in the amount of the original quote?

    Cheers
     
  8. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    That sucks big time dan. If its in your contract to fix I suppose its got to be fixed. If its just emails between conveyancers not sure about that. Have you a solicitor or conveyance?
     
  9. Chilliblue

    Chilliblue Well-Known Member

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    Not a legal person but your conveyancer should be directing you. My opinion is if it has been documented that the roof is to be repaired and the vendor has agreed, then there is intent on the vendors that they acknowledged works are to be done.

    You hold a building report so also best to try and get an independent quote yourself and hold over the monies at settlement if your conveyancer agrees that is the right way forward.

    Note that you may need to have the building inspector reinspect the roof before settlement just in case the vendor claims that they have repaired it themselves.

    Keep us updated.
     
    Last edited: 4th Nov, 2015
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Agree with @Chilliblue - get proof of repairs as agreed or delay settlement until it has been completed (copy of invoices etc).
     
  11. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    What is the issue with the roof?
    A leaking roof is very vague.
    Did the building inspector pinpoint the issue/s?
    Leaks on a roof can come from various sources.
    Without specifying precisely, it will be difficult to determine if enough has been done to prevent further leaks within reason, considering the age of the roof too.

    Taking it to the extremes, if the vendor buys a $10 tarp from Bunnings and ties it down, that would fix the leaks.
    Was the method of making the roof non-leaking specified?
     
  12. dan2101

    dan2101 Well-Known Member

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    Thanks guys

    Off the top of my head building inspector identified:

    Broken ridge capping
    Broken tiles
    No sarking
    Roof tie downs not done up?
    Few other things that I'll have to read about to remember!
    Gyprock in hallway damaged from leaks

    Look I understand roofs leak from time to time. My issue is that when I put an offer in it was indicated that the vendor had a pending insurance claim in to have the roof repaired. In hindsite I feel this was probably just sales agent ********.

    In the end they agreed to fix the issues identified in the building report. Now they have a quote saying there is no issues.

    Will see how I go but I've told my conveyancer I won't be settling unless the issues are fixed or they give me a couple of grand off the purchase price. Not sure of the technicalities @Ace in the Hole hoping to find out tomorrow. Unfortunately my conveyancer is fairly vague and disinterested.

    Dan
     
  13. Azazel

    Azazel Well-Known Member

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    It's good to get 3 quotes, but I mean this seems like a best out of 3 situation - 1st one said leaking roof, 2nd said no problem... 3rd is the decider.
     
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  14. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Withhold $3000 from settlement to cover the work per the quote.
     
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  15. Azazel

    Azazel Well-Known Member

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    That sounds pretty reasonable, not sure about doableness (Is that a word? It is now).
     
  16. Chilliblue

    Chilliblue Well-Known Member

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    If it was agreed in writing by all parties that there was outstanding works then it should be cut and dry as the vendors inspection stating no issues occurred after the event.

    Just a thought, do you have a copy of the vendors report and are able to validate the claims are from a reputable and licensed contractor?
     
  17. Scott No Mates

    Scott No Mates Well-Known Member

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    Has the building inspector gone back out prior to settlement to check these things have been done?

    It's wet in Sydney atm (don't know if the house is in Sydney) so get it checked in the rain.
     
  18. dan2101

    dan2101 Well-Known Member

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    Chilliblue yep got it in writing. Albeit only emails between the comveyancers. Good idea though, do I just check the licence number with fair trading or something?

    Hey Scott. It's in Brisbane. That's the issue nothing has been done. The thing that makes me most suspicious is the managing agent has no record of a contractor visiting the house to inspect the roof the second time round. You would think if someone was walking around on the roof they would need to let the tenant at know!
     
  19. Chilliblue

    Chilliblue Well-Known Member

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    Yes it can. For NSW:

    Check a builder or tradesperson's licence
     
  20. Azazel

    Azazel Well-Known Member

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    That does sound a bit suspect.
    You should consider sending someone out there to do a quote for you as soon as possible.