We are represting ourselves in selling our first home (as is the experienced buyer). There is 2 issues on the building report that has failed. The buyer has done a letter for us to sign stating we agree to the repairs to be fixed to a professional standard. I’m not happy with the term professional standard as it seems to leave the repairs very open. How should be word a new letter for the buyer. There is also an extra repair that the buyer requests we get fixed, the building inspector has noted the problem, but it is not structual, do we have to fix this for the buyer.
Thanks
LisaLisa M Bentley
You don’t have to fix anything. It is a negotiating point for the buyer if they have to fix it. If it come down to a couple of thousand dollars for repairs, just take it off the sale price of the home and they can fix it themselves. You are not selling a brand new home are you???
The Mortgage Adviser
http://www.themortgageadviser.com.au
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Essential LinksLisa,
The answer depends entirely on what the exact wording on the sales contract says.
Typically for res. property, it’ll say something like “The Buyer reserves the right to conduct a building inspection at his expense within 14 days blah blah….and then some action based on the findings…usually if the Buyer isn’t happy has the opportunity to walk.”
If the wording doesn’t specifically say that you have to rectify any problem…then you don’t have to. This is probably the case.
In the above instance, I’d tear up the report and say ;
“The building inspector and yourselves are exactly correct, that’s why we agreed to the Contract Price being what it is. We knew about those defects and figured the price accordingly. If they weren’t there, the price would of been $ 5,000-00 higher…”
It puts the ball right back into the Buyers lap, with them having to ask themselves the standard question….
“Despite all of the downsides identified, do we still want to go ahead ?”
With them going this far down the track with the purchase, I believe you’ll have them for breakfast.
My recommendation – sit tight, do nothing, definitely don’t sign anything…and tell the Buyer “You don’t give a rats **** what the report says…the price is the price and that’s it pal…take it or leave it”
Be tough with them, or they’ll walk all over you…whatever you do – never sign bits of paper drawn up by the Buyer…bad bad move…if that’s the case they are controlling the show…and that ain’t good for your hip pocket.
Let us know what happens…
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
or … you could word it that it is repaired to the satisfaction of a named person (tradesperson or inspector) that you pre agree on!
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
The Contract has obviously already been signed so there is no point talking about adding special condiitons now.
Most residential contracts are subject to the purchaser obtaining a satisfactory pest and building inspection
If during that time they have come to you and said we want this, this, this and this fixed prior to settlement.
You have every right to say we will get it fixed prior to settlement on the conditon the cost of these rectifications are deducted from the purchase price at settlement.
It really depends on what the issues are that they are raising…obviously without this information its hard to give accurate advice.
But if the purchaser wasn’t satisfied, they could terminate based on that clause (assuming it’s there)
Missy79,
I’m totally confused by your post.
Firstly, unless the wording on the contract is very unusual, the normal Building Report clause is a “walk or delete” clause. If the Buyers are not happy with what they find…they walk…if they are satisfied…the clause is deleted from the contract. Normally, nowhere does it say they can come back and haggle with the vendor to repair the identified items.
Secondly, it doesn’t matter at all what the actual features or defects were…once again, it’s a ‘walk or delete’ decision point for the Buyer solely. The vendor does not need to get involved at all.
Thirdly, I think you are tad confused…why on earth would the vendor agree to a whole bunch of expenses (see point 1), and then in addition to that take all of those expenses off the purchase price ?? I think you have your Buyer hat on….I read somewhere up the top the thread was initiated by a vendor asking for help ??
Overall, the building clause, unless specifically stated in the wording, gives the buyer and vendor no such leverage to negotiate and horse trade on dollars. It is a definitive turning point in the contract that is the sole decision of the Buyer;
1. Do we walk and tear up the contract, or
2. Do we delete the clause from the contract and move forward to settlement.In any case, there is usually a time frame, such that the clause automatically lapses and the Buyer loses the benefit of walking if they sit on their hands.
In regards to this particular clause, at no stage during the contract does the vendor have to lift a finger…
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
As far as I am concerned, if the contracts are exchanged and there is no cooling off period, all you have to do is what is in the contract. Any letters additional to the contract are not enforceable. Any problems should have been identified during a pest and building inspection prior to signing the contracts.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential Links
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