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Vendor won't accept B&P condition on offer?!

Discussion in 'The Buying & Selling Process' started by Noobert, 15th Mar, 2016.

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  1. Noobert

    Noobert Active Member

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    I put an offer in on a wooden house in kenmore, Brisbane- a C grade house on an A-B grade st.

    Agent has said there's been several other offers, all with b&p in the conditions.

    The owner has come back through the agent saying they wont accept b&p in offers and will get an independent b&p inspection and provide the report to all bidders.

    Has anyone had this happen to them? A potential positive would be some of the high bidders will retract their bids and my lowly offer will have a chance. Wondering if there was a way around this mitigating risk.
     
  2. Kinnon Bell

    Kinnon Bell Finance Broker

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    Warning signs for me - why won't they allow your own B&P? To me that says there's something wrong. Possibly engaging their own dodgy B&P that will leave out key things wrong with it.

    Get your own B&P during the cooling off period and if it comes back unsatisfactory then cool off on the property but risk losing your 0.25%.
     
    S.T, Propertunity, York and 1 other person like this.
  3. Hodor

    Hodor Well-Known Member

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    Get the b&p done before you put your offer in.
     
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  4. Nemo30

    Nemo30 Well-Known Member

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    Maybe they just want real offers where you aren't going to try and drag the price down further due to some insignificant thing found in a b&p report.

    Do your own due diligence, get your own report and make an offer based on all known info.
     
    wylie likes this.
  5. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    If they're doing their own B&P inspection, that's somewhat acceptable, but keep in mind that you need the opportunity to follow up with that inspector to ensure they're appropirately qualified and have appropriate insurance. Having their mate Bob the Builder write up a quick report isn't acceptable.

    Personally though, I'd insist on my own, or at least a review by someone I trust during the cooling off period.
     
  6. Chrispy

    Chrispy Well-Known Member Premium Member

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    I can understand this, having had an offer who insisted on getting her own B & P,. contract was subject to B & P, she cut the offer down significantly, then had me hanging on for 4 months while she decided what to do about B & P.

    It was all to do with not having cyclone proof roofing screws, which were in the process of being done by the Body Corp. After the 4 months I refused a further 2 months extension and she pulled out. Roofing screws were completed within 3 months. I pulled the townhouse off the market and left it rented.
     
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  7. TMNT

    TMNT Well-Known Member

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    very interesting, I see two angles as mentioned,

    the "they know there is a problem with it and dont want the clause"

    or

    the "we want real/quick offers"

    however I think the former is much more likely
     
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  8. Noobert

    Noobert Active Member

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    Again, appreciate all the input everyone.

    I queried the agent and, yes, the above posts seems to describe the case - where the seller doesnt want to muck around with potential delays and losing buyers.

    B&p at seller's expense to be carried out on friday so see what comes from it!
     
  9. D.T.

    D.T. Adelaide Property Manager Business Member

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    Wouldn't accept it on an offer in SA either, that's what cooling off period is for.

    Never put it as a condition on any of my purchases. Again utilised cooling off period as necessary.
     
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  10. Kinnon Bell

    Kinnon Bell Finance Broker

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    Cooling off in SA vs QLD is a little different though. From what I understand the penalty in SA is the nominal holding deposit ($100-ish?) whereas in QLD it's 0.25% of the contract price so not always a small amount.


    OP, out of curiosity is the vendor only accepting uncon offers or agreeing to a finance clause? If only accepting uncon understand wanting to avoid delays but if they're saying 'yes' to finance clause but 'no' to B&P clause....
     
  11. D.T.

    D.T. Adelaide Property Manager Business Member

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    Not even that, don't pay deposit til cooling off period has finished. That's why its safe to use here :)
     
  12. Noobert

    Noobert Active Member

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    @Kinnon Bell they are only saying no to b&p clause.

    But while the agent pointed out all offers had b&p clause, the agent didnt say they all had finance and legal clauses. so maybe the seller's addressing b&p gets him closer to sealing the deal.
     
  13. Kinnon Bell

    Kinnon Bell Finance Broker

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    Usually the B&P clause ends before the finance date so don't see how it would be causing delays.

    To me, this is sending even more warning signals as they're saying ok to a finance clause but no to B&P seems even more like they're trying to hide something.

    If it were me I would be getting my own B&P either before making an offer or during the cooling off period. If the vendor refuses then I would run a mile.
     
  14. Nemo30

    Nemo30 Well-Known Member

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    There was a thread here recently where delaying the owner and reducing the price through b&p was put forward as a great tactic.

    If people are going to use it for other than intended expect more of this.

    Negotiating after B&P results
     
    Last edited: 15th Mar, 2016
  15. neK

    neK Well-Known Member

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    Has anyone successfully used Subject to Finance or Subject to B&P on a property in Sydney? Or is this just a Brisbane thing?
     
  16. lewy89

    lewy89 Well-Known Member

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    My REA also wanted to do this for a property that I was selling.

    The house had absolutely nothing to hide but she said statistically houses in my area (generally built in the 70's) have about $5000-$9000 taken off the offers after B&P (Balcony laws etc). She wanted to get her own B&P inspector in (legitimate) to conduct the inspection where he would pick everything up but wouldn't scare people off with it.

    I know that when I purchased the property the B&P people (won't use them again) I used scared me enough to take a step back and second guess it, however, 18 months down the track I am looking at about a 8% ROI if I were to go and sell.
     
  17. Gurtofen

    Gurtofen Well-Known Member

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    So D.T, what do you do should an issue arise from the B&P Inspection?

    Would/do you try and negotiate on price prior to cooling off and simply pull out if you and vendor can't come to agreeable terms? Would having the offer subject to B&P give you more time to negotiate the contract of sale even after cooling off has expired?

    Thoughts?
     
  18. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Put in a finance condition but state that you want a B&P inspection in the contract

    Special condition below adjust if B&P condition is a different clause number

    1. The Seller agrees to allow the Buyer access for the purposes of a Building and Pest Inspection for the Buyer's own information. This Contract is not subject to the Buyer's satisfaction with any inspection and accordingly Clause 4 of the Standard Conditions does not apply.


    If anything comes up in the B&P then I am sure your offer of finance will not be satisfactory because you would need money to fix it.
     
  19. D.T.

    D.T. Adelaide Property Manager Business Member

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    I've had this happen - a home that I thought wasn't asbestos, b & p confirmed that it was so I pulled out by exercising my right to cool off. Could have also gone to the sales rep and said negotiate to X price or I'll cool off.

    The b & p clause (in SA, every state is different) doesn't add anything since you can get out anyway, but makes vendor more likely to not accept.
     
  20. dabbler

    dabbler Well-Known Member

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    Do your B&P checks first