Sold house Building inspection minor defect buyer asking me to rectify

Hi guys

We have sold a property in Tasmania, contract of sale for a property is subject to building inspection and finance.

Building inspection has revealed minor work needs to done on flashing and purchaser has asked us to pay for repairs. We are reluctant to do this and think we are not legally required to fix minor defects. Is this correct?





Thanks for any suggestions

Cheers

Kevin

 

You need to read the terms of the condition in the contact. In WA I had it explained to me it was only for "structural" faults.

 

You need to read the terms of the clause.
eg Understanding building and pest conditions when buying a house

 

You need to read the terms of the contract. Contract allows buyer to either claim up to a percentage of the offer (I think 3% is the standard) or a nominated value for things brought up in the building inspection.

 

According to Tas law as far as I recollect from the last time I had a property under offer.

The Vendor is not obliged to undertake the repairs.

Under the very old days Tas system where as all greed terms of the contract are settled by layers as oppose to conveyancers.

Clearly it is the perogative of the buyer to decide where or not to go ahead with the deposit pending negotiation via e.g.' Professionally quoted repairs value deduction to the purchase end value or deposit value.

Tas law re property purchase is quite different & many yrs behind the system on mainland states.

Deposit proceeds are generally binding & not usually refundable to the buyer once received.

I would discuss it with your lawyer & make certain the law firm is competent ,

All the best

 

Thanks for all suggestions

The contract states if the purchaser serves on the vendor a copy of the report by a building inspector ... or a licenced building services provider under the occupational licensing act 2005 (Tas), both;
specifying one or more defects in building and other improvements on the property; and
certifying such defects are likely to cost more to remedy than the defect limit; and notice that the Purchaser terminates the contract in response to that report;
then the parties obligations under this contract end and the purchaser is entitled to a refund of the deposit but neither party is otherwise entitled to compensation.

The defect limit is 1% of sale price (which was 575000) or $ ____which is left blank.

If I interpret this correctly they can do nothing as cost of minor repair is less than 1% of sale price.

I am reluctant to pay for repairs if I do not have to as they paid 20,000 less that agents bottom valuation range and we are also giving them a portable fire fighting pump not mentioned in the contract at no cost which is worth a minimum of $300.

Contract is also subject to finance for another 3 weeks and if they wanted to be difficult they may say finance was not approved?

Welcome any interpretations of the building and pest information from the contract.

Cheers

Kevin

 

I am not a builder rather I am a mechanical engineer whom was an owner builder of most of my reasonably large home.

Judging by the very minor issue of the absent bit of flashing it would seem obvious that the repair would be well under the specified 1 %.

I would be more so enclined to believe the the pending buyers lawyer is simply e.g.

Trying to leave an additional loop whole for his client to attempt to escape through in the event that pending finance falls through.

Indeed a very weak loophole at that.

Again I would recommend that you would expect yr lawyer tighten this contract up after all
That's what you are paying for.

 

When you look at the first picture ,and the way that flashing sits inside the side-cladding and maybe 25mm up inside the wall ,heavy rain that would leak..The whole flashing need to be reset ,I don't blame the buyers .

 

If it is so minor, why don’t you just fix it? Then the buyer would have no wiggle room. I think your lawyer should have given you better advise on the contract before you signed it though as well.

 

How old is the work/cladding ?
That second pic shows terrible workmanship and should never have been accepted in the first place
So are you accepting $20k below market value, or the "estimate" the agent gave to get you to list/sign with them
Would you pay less or more for the place if you were buying it ?
Would you expect these items fixed if you were buying.......
Selling - buying is a negotiation, this is all just another part of it
I expect from whatyou have shared that the buyers are likely to walk away

 

Thanks to all posters

We have decided to fix the problem, mainly as this was the first couple to make an offer after our property has been listed for 3.5 months and we do not want to lose them.
Agent said this is the best year they have had in the last 8 years they have been in business on Tassie East coast. Would not like to try and sell in a bad year.


Have a good day.

Cheers
Kevin