Shoddy construction on OTP property

Hello,

A friend of mine is purchasing a house off the plan in Victoria (foolish i know). The house has been finished but there are numerous (several dozen) issues with the house both minor and major. A lot of these look to be due to shoddy workmanship. The builder and the seller are different parties, ie the seller contracted the builder to build the house which would then be sold when complete.

The owner wants to settle saying the house is complete and the builder will rectify after settlement. What are my friend’s options?

Does this sound right? Surely the house should be finished and 100% before settlement?

Can the contract be voided due to shoddy workmanship? Probably the best option as the workmanship that can be seen is so shoddy one hates to think what is unseen.

Can money be withheld at settlement to cover outstanding issues as how keen is the builder going to be to do work after settlement (and they have been paid)?

Cheers

 

What did your solicitor say ? This is a good example of when a conveyancer cant give legal advice.

The contract and the legal implications of not settling (or deciding to settle) must be understood and addressed as a legal claim.

 

What does the contract say about defects?

 

Thanks for your replies.
I did have a quick look at the contract, seems like a normal sales contract with a bunch of house plans and other attachments. A lot less details than other OTP contracts ive seen(ones for buying units from big developers). I didnt see anything about defects on my quick read, perhaps some stuff about house being as described although that maybe standard Vic contract i dont know much about Vic stuff.
Seems a bit strange as builder is contracted to seller so if seller signs off on the build in a crap state purchaser just has to live with it?? Doesn't seem right to me, surely an OTP building should be completed 100% prior to settlement.
Perhaps they have just signed a poor contract but perhaps their as some protections in the law somewhere. eg i couldnt find a sunset clause and the contract had a date but also said or when complete which seems strange ie they could take as long as they want to build the house.
I think legal advise would be a good idea and they may well end up doing that. Im just after some ideas from the knowledgeable people on here

 

Like a solicitor

 

Any other ideas would be appreciated as well . Im certainly advocating talking to a solicitor. Having some ideas indicating their maybe hope and talking to a solicitor may not be throwing good money after bad would help get the idea over the line

 

A solicitor needs to look at the contract and advise accordingly. No one here can advise anything without knowing the particulars of the situation. You should suggest that they do this asap

 

Thanks for your replies. Does anyone have any suggestions about good victorian properties lawyers for dealing with this type of matter. Would also be great to get a rough idea on costs involved to pass on. cheers

 

Should also point out apparently a number of the issues with the property are considered major defects

 

By whom? A friend? Or the contract? A contractual issue is always a legal issue.

 

It seems like the case on my previous settlement for my piece of land.

The conveyancer couldn't do anything when the vendor arranged a settlement date.

The conveyancer could mention all of your concerns about unfinished areas and demand the vendor to fix them and that's all.

If you intend to move in straight away you should tell the conveyancer as well as keep pressing the conveyancer to do some legal works if the vendor keeps delaying the unfinished works.

It becomes a norm nowadays I think

 

I'd contact the relevent department that deals with consumer rights.

I'd be pushing for "fix the the defects before settlement or give me my money back you mug". (maybe call him a mug after the defects are fixed).

 

That's why you go to a lawyer and not a conveyancer. A few dollars more but well worth it