Purchased house, vendor hasn't fixed fence as per contract- Settlement query

imnotarobot on 09/12/2016 - 21:21
Last edited 09/12/2016 - 21:22

**Edit* wrong category, sorry. Probably should be in Home and Garden…

Hi all,
I recently bought a house.
There was storm damage to one of the boundary fences which the RE said was an insurance job and that the vendor will fix before settlement.
We wrote it into the contract- That the fence is to be repaired or replaced.
It's not minor damage, either. There's a stretch of about 8 metres that doesn't exist, with damage to panels further along.

I had my final inspection today and the fence still isn't fixed. I was told that the vendor is waiting on insurance/liaising with other neighbours over sharing of costs and so on. They hope it can still be fixed before settlement which is this coming Wednesday. But I doubt it will be done by then.

The realestate was mentioning that they could give me the money to repair their part of the fence and I chase up the neighbours for their portions. But that seems a bit of a cop out to me- I shouldn't be chasing anyone to fix the fence at all- it was written in the contract to be completed before settlement. It should be fixed by the vendor.

What should I do? I've said that I'd be happy to replace the fence if they credit me the cost of doing so IN FULL ($3K), then the vendor can chase neighbours later on for costs. I want nothing to do with chasing neighbours for money.

I guess I'm just annoyed I've come this far to be held up by something which was written in the damn contract to be fixed and wasn't…
Any suggestions or insights into my rights is appreciated! (I'm in WA)

Financial

Comments

  • b2tf on 09/12/2016 - 21:45

    take the money and work with your neighbour to fix the fence later

    • imnotarobot on 09/12/2016 - 21:48

      There's three neighbours. One is Government owned so not as straight forward as I had hoped.
      I don't want to have to chase money for the repairs.

      • subywagon on 09/12/2016 - 22:32

        You'll have to decide whether you it's in your interest to delay settlement then over the fence.

      • whooah1979 on 09/12/2016 - 22:40

        There's three neighbours.

        Technically the vendor only need to fix 1/3 of the fence. So 2.67m.

        • imnotarobot on 09/12/2016 - 22:44

          What?

        • whooah1979 on 09/12/2016 - 22:48

          @imnotarobot:

          The other owners are responsible for the other 2/3.

        • imnotarobot on 09/12/2016 - 22:53
          +1

          @whooah1979: no, the way the boundaries work is the vendor is responsible for the entire length of replacement. Each neighbour is then also responsible for half of the length bordering their properties. …if that makes sense.
          I know what you're getting at, but it isn't entirely correct.

          Also, it's written in a contract that it would be fixed. I don't care how or by who.

  • kipps on 09/12/2016 - 22:32
    +4

    You could offer to settle on the basis that there is a deduction to the purchase price equivalent to that cost.

    You might also have the option of refusing to settle.

    Get legal advice.

  • rambutann on 09/12/2016 - 22:35

    I would just refuse to settle as they are not ready to settle. Your convayencer should be able to sort this out for you…

    • imnotarobot on 09/12/2016 - 23:08

      Yeah I think that's the way I'm heading…

  • bigticket on 09/12/2016 - 23:26
    +1

    Talk to your solicitor for the best course of action.

    If the fence is 3K worth then agree to settle with say 6k adjustment in your favour or you can delay settlement which can incur the vendor few hundred dollars per day lost interest and penalties if written into the contract. That should get the ball rolling. Do not agree to settle if the vendor promises fixing it afterwards. That will not happen.

    If possible, inspect the property as close as possible just prior to settlement, preferably 1hr prior and give the agent plenty of notice. Some vendors are known to be unscrupulous. Change the locks after settlement.

  • cjbowden on 09/12/2016 - 23:32
    +1

    You really need to decide if you want to settle next Wednesday or not. Having been a vendor, generally there is a lot more at stake for them, so you will never be in a better bargaining position (doesn't mean screw them, just don't accept anything you aren't comfortable with).

    If you are not happy with the fence situation and dont need to settle next week, then dont. Dont accept anything where you have to chase other neighbors for their share. In particular, my property shares a boundary with a park maintained by the local council (in WA). When my fence got damaged in a storm, turns out that the local council is excluded under the Fencing Act, and I had to cover the entire cost.

    I would go with:

    1. Fix it before settlement OR
    2. Ask for the full cost (as you suggested)
    • imnotarobot on 09/12/2016 - 23:49

      Thanks, I don't want to screw the vendor over at all. But also don't want to take on any extra responsibility when I shouldn't have to.
      I'm not desperate to settle on Wednesday. I can wait. I'll consider what you've said, thanks for your input

    • imnotarobot on 10/12/2016 - 11:51

      Thankyou! Exactly what I was after- If I ask for the replacement cost of the fence, I now know I need to get the replacement cost of Hardifence, as like-for-like means that's the only fence I can erect without notice to the neighbours, after whichh the previous owner can chase them for money later on.

  • the-mal on 10/12/2016 - 11:23

    You have a conveyancer right? This is their domain. Tell them what you want and let them do the talking.

    • imnotarobot on 10/12/2016 - 11:51

      Yes I do, I'm just lining up all my ducks, is all

  • djkelly69 on 11/12/2016 - 23:36

    Preferably don't settle until it is either fixed, or they have given you enough money to fix it completely yourself.

    If you really want to settle, you could ask your conveyancer to request that $3k (or whatever amount is sufficient) be held in the agent's or a solicitor's trust account until such time as the fence is fixed. Make sure there is a time limit put on this, say two weeks, after which time the funds are released to you and you have it fixed yourself.

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