Waiting for Settlement and Now Have Observed Water Leak in Ceiling Space in One Room

Hi all, have recently purchased a house and currently waiting on settlement (next month). Earlier this month, we had an occasion to visit the house to meet up with the vendor and noticed a water spot on the ceiling in one of the rooms.

When I pointed this out to the vendor, she was surprised and claimed this is the first time she had seen it. She also mentioned it could be due to the heavy rain that had lashed the region recently (house is in Melbourne). I am not sure the source of the water leak, however I presume it may well be from the roof (flat tin roof) since vendor says there are no plumbing lines over that part of the room.

I am now concerned the vendor may have hidden this (known) issue previously and there might be a potential high cost to get this fixed. I had done an house inspection prior purchase and the inspector did not find any major issues save for some corrosion on parts of the roof that he has advised is typical for the age and will not be a concern for some years. I have checked and discussed with the vendor and she has refused to investigate and rectify since she considers the house is now sold.

Would appreciate advice from fellow Ozbargainers on any options I might have to address this issue - is there any way I can force the vendor to repair the leak considering the house is not in the same condition it was sold or would have to carry out repairs at my cost post settlement.

PS we have bought the house after making an offer and not thru an auction.

Thanks in advance

**Update: Have now spoken with my conveyancer/solicitor who has advised that we may propose the repair to the vendor, however cannot force the vendor to carry out repairs for the leak especially since now the contract is unconditional. Only conditions on the contract were the subject to finance and house/pest inspection clauses - both were successful and have now lapsed. Hence unless we see the condition of house to be substantially different in our inspection just prior to settlement compared to the day the contracts were signed, its pretty much up to the vendor if she wants to repair or not. I understand "substantially different" would basically mean a large area waterlogged or ceiling falling in etc

Since we had already checked with the vendor and she has refused to repair, seems we will have to carry out the repair ourselves post settlement. I am a relatively good DIY-er and fingers crossed its a minor repair within my skills.

**Update #2: The vendor has determined the water spot in the ceiling is much larger now and she's advised she will be proceeding with an insurance claim to rectify the damage. The assessor will be in later this week to inspect.

This has now worked out well for us in the end and keeps our minds at rest that the leak/damage will now be looked at professionally

Many thanks and appreciation for the Ozbargain folks here for their thoughts, comments and knowledge on this issue

Comments

    • +3

      3rd paragraph?

  • +1

    Normally you'll get a pre-settlement final inspection done prior to settlement occurring. I'd advise the vendor that you'll intend to raise this as an issue on that inspection, so it's in their best interest to get it rectified before then to avoid delaying settlement.

    Disclaimer - this is not legal advice. If you want legal advice, you should probably ask your solicitor/conveyancer as that's what you're paying them for.

    • +3

      If the vendor is reading this: buy some paint.

    • -1

      likewise, I may not know what I'm talking about, but I believe the pre-settlement inspection is to ensure that the house is in the same state as when purchased.
      The main purpose is to ensure no inclusions have been removed etc, but I believe I was within my rights to abort settlement because the vendor couldn't provide working keys to all locks.

      However, we still wanted the house so proceeded anyway.

      You need to decide whether you really wouldn't want the house anymore. If you really want to abort, then maybe the roof wasn't leaking at the time of inspection and now it is = justification to abort settlement.
      But maybe roof was leaking, but it just wasn't raining? So maybe you have to go with ceiling wasn't stained, but like @abb said, paid could fix that.
      Thus getting out could potentially end up in a court case.
      But maybe you still want the place anyway?? Maybe the cause of the leak isn't huge? Or maybe it is something that you were going to have to do anyway, even if you didn't see this leak for a few years.

      Just as a guide, it's costing us $4000+ to have our roof repaired. Our ceiling started leaking, we had someone inspect the roof, and it was in pretty bad condition. Who'd have known? Building inspectors don't get up there.

      Even if it cost that, which would prob be a worst-case scenario(??), maybe it is a reasonable maintenance job you were going to have to do, it's just come a bit earlier than you'd hoped?? But then again, it's probably something you'd want to factor into the price you offered if you knew, so maybe it's worth you trying to negotiate or threaten to walk??

      It makes me realise I should do a much more thorough inspection in future. Building inspections aren't anything more than an extra pair of eyes, probably a bit better than yours. But a thorough check yourself (like actually getting a ladder up onto roof) would probably be more valuable if you have any idea what you're looking for.

      • +1

        A good building inspector will inspect the roof of a house and no they are not just a extra pair of eyes. They know exactly what to look for and where and know the conditions of everything and know every single defect. A good building inspector will know much much more than you, that's why you need to go with a good building inspector and not an average one.

        • +1

          have you ever had a building inspection report that doesn't claim no responsibility whatsoever? MY most recent one actually recommended we have separate plumber and builder inspections for the various things he observed. I figured that's what I'd paid him for! But he was no worse than any other I've had.

          Have you seen the qualifications you need? I was thinking of doing it myself because I figure I've bought enough houses to know what they're going to look at.
          They'd might as well combine exit carpet cleaning and pest control with pest inspection and building inspection.

          Maybe you're right, I just haven't found one of the good ones yet.

          I was wrong about the roof though. They are supposed to check the roof.

      • OP also stated the inspector got up into the roof, so there goes your knowledge. Don't listen to SlickMicks advice, it's a little… err off

        • 2 comments to slam me. ouch

  • +3

    It may be an easy fix too, try and get some time to have a look in the ceiling space and see if you can spot where it is coming in from. Possible that heavy rain, combined with strong winds can cause leaks in tin roofs as the wind blows the rain uphill and under the corrugated sheets. This would not be picked up by a building inspector, unless it was raining at the time. It is also an easy enough fix.

    Outside of that, talk to your solicitor, you have contracts in place. They will advise what room you have to move.

  • +2

    Talk to your conveyancer. The settlement inspection is the last time to add conditions to the sale so if you haven't done that yet you can probably do it now. He/she may advise you to get it checked out by a plumber/builder with a quote to fix, and you can remove that much from the final price. The conveyancer can do this along with adjustments for rates, strata, rent, etc.

    she has refused to investigate and rectify since she considers the house is now sold.

    The house is not sold until settlement so don't listen to her. Speak to the professional.

    • Thanks for the advice, much appreciated

      Not sure if the vendor will allow me to hire a plumber to get get quotes or should the onus be on the vendor to arrange one (through the REA)

      • You should be able to do it during the pre-settlement inspection if she won't let you do it beforehand, but the conveyancer/solicitor should be able to give you advice

    • +1

      Incorrect…settlement inspection is not the last time to add conditions to sale. This must be done prior to exchange.

      The house is sold once exchange occurs. Settlement period simply allows the buyer to finalise finance and pre-settlement inspection allows the buyer to ensure all inclusions in the contract of sale have been left, as well as ensuring that any maintenance / repair issues (identified prior to exchange) have been rectified.

      I am yet to see a property that has been exchanged not sell due to a pre-settlement inspection and I do this for a living.

  • +7

    I am now concerned the vendor may have hidden this (known) issue

    Unless it was raining heavily before you bought, they didn't need to hide it. They have no obligation to tell you all the property's issues, that's on you.

    she has refused to investigate and rectify since she considers the house is now sold.

    She's right.

    • -1

      Yes caveat emptor

      Except

      She's right.

      Not until settlement

      • +1

        if no special conditions added prior signing of contract, then contract becomes unconditional after finance/b&p date.

        • unconditional isn't unconditional. The house must be presented at settlement as it was when purchased. Thus the pre-settlement inspection.
          The question is whether a stained ceiling is a reasonable change from as at purchase date. eg if there is some good rain and the ceiling collapses before settlement, there is no doubt settlement would be aborted.

      • +2

        Liability for the property pretty much transfers to OP on contracts being signed and exchanged. This is already officially OP's problem. The vendor lady is completely correct here.

        • -2

          There may be some penalties for pulling out depending on what the contract says, but OP can still choose not to buy the house up to before settlement. The house is NOT already sold.

          • +1

            @Quantumcat: What the F? No - if contracts have exchanged, OP will be breaching that contract, will lose the deposit, and can be sued for any losses on resale if they pull out.

            Just FYI:

            1. Exchange - when contracts are signed, dated, and the deal is (pretty much, potentially subject to finance) done.

            2. Settlement - when the balance of the price is paid and the keys actually handed over.

            • @HighAndDry: Depends what the contracts say. I was able to get my deposit back (just lost on legal fees and building inspections) on my first attempt to buy a house after getting a second building inspection and asking them to fix the issues that came to light or have quotes removed from the final price.

              Maybe you had a bad conveyancer when you bought your properties?

              • @Quantumcat: Had you exchanged contracts at that point and/or were under a cooling off period?

                Maybe you had a bad conveyancer when you bought your properties?

                No, these things are fairly black and white. Vendors can decide to be nice, but the legal rights are set.

              • @Quantumcat: Just curious, how did you manage to have the second house inspection conducted - was it part of the contract after noticing issues or you had specially included a stand alone clause. thanks

                • @Terocket: I noticed the floor in the kitchen was slightly unlevel and wanted to get that checked out. The first building inspection was by a family friend so maybe it didn't count as "official"? I don't remember, was about 5 years ago other half organised it mainly >.<

              • +1

                @Quantumcat: Nah, either you had subject to b&p dated within contract and had your 1st b&p as unsatisfactory,
                OR the vendor was being nice to you.

                in this case, OP already waived b&p condition as satisfactory so he can't backtrack and use that condition to pull out.

                • @dcep: Ok maybe you're right. He should still check with solicitor/conveyancer before making any assumptions. Never know your luck. Worst case scenario they add on another hundred for extra time/advice?

                  • +1

                    @Quantumcat: yeah I think you got lucky that they allowed a 2nd inspection if the contract inspection date had lapsed.

                    I guess legally the only way out after the contract becomes "unconditional" is a breach of contract. In the scenario where the house is not in same condition at settlement as when sold, that's a breach of contract on the part of the seller.

          • +1

            @Quantumcat: Incorrect, if the buyer pulls out of the contract after exchange they will forfeit 10% deposit.

  • +4

    Aside from advising you to post here, what did your solicitor/conveyancer say?

    • -8

      Haven't spoken to the conveyancer yet. The vendor is a lovely lady and I wanted some other options apart from going thru the legal route.

      However seems the overwhelming advice I am receiving here, I need to stop being a nice guy and get this looked at legally!

      • +8

        the overwhelming advice I am receiving here

        Are you looking at the same thread I am? Because the "overwhelming advice" is basically this is on you.

  • +5

    The vendor doesn't have to tell you everything that is wrong with the house. It is up to you to check

  • I doubt they hid it - general rain often doesn't reveal stuff like leaks, it's only heavy storms where problems become noticeable.

  • -4

    Ok so you did get building inspection done..

    • +2

      did you not read the 3rd paragraph of the post?

      • Or the very first reply either.

  • ADVICE

  • This is why you have the final inspection before settlement. If the condition of the house is not like the one when you signed the contract, you have the right to ask them to fix or reduce the amount from the final settlement. If the vendor doesn't agree, you can get out of the contract. Just don't release the initial deposit to vendor

    • I don't expect people to necessarily give good advice here, but can people at least not give completely wrong advice? Leaks don't develop over the course of a few weeks - this leak very likely already existed at the time OP signed and exchanged contracts, but just wasn't apparent because it hadn't been raining heavily.

      OP can demand that the water spot be cleaned up - that's pretty much it.

      • I'm not sure that your advice is any better. I don't know either, but it's for op to find out whether a ceiling that wasn't damaged upon inspection but now is, is sufficient to abort settlement (as seller has breached contract by not providing house in the condition it was presented at purchase), and a coat of paint may not necessarily remedy that defect.

        Maybe (I don't know the legalities of it), the supposedly preexisting (says who??) leak is only the cause, but the issue at hand is the damage??
        Maybe the vendor could be forced to replace the ceiling. Maybe it could be negotiated to fix the roof instead??

        Also, would it be for the vendor to prove that the leak pre-existed, or for the buyer to prove that it didn't??

      • +1

        yeah that's right, a sale is a sale, it's unconditional. You buy the house as is. It's on you to get the right inspector to inspect the house and if it happens nothing was found, it's just bad luck.

  • I had done an house inspection prior purchase and the inspector did not find any major issues

    Most small leaks can't be found on a visual inspection unless there's been recent rains. It's entirely possible the leak already existed but just wasn't evident.

    • +1

      Agree. Spoke with the building inspector again and he did not notice anything out of the ordinary in that area when he was up on the roof. Also the vendor was surprised when I pointed the leak out to her- she had completely missed it

      The leak is next to a high long window in the room and I did have a quick look on the roof edge standing on a ladder - did not see any obvious entry points for the rain water. As lowlife commented above, it may well be from under the corrugated roof due to the prevailing winds during that event

      • it may well be from under the corrugated roof due to the prevailing winds during that event

        Definitely a possibility, especially if it's only a water spot after very heavy rains. Still prudent to have someone go into the roof void and have a comprehensive look around after settlement, but probably only a small issue.

        Unfortunately just part of buying an existing property (and in the future, property ownership). Still, congrats on the new place!

        • Thanks!

  • +6

    A $6 silicone tube from Bunnings, a ladder and 30min may fix it.

    • Exactly. OP beating the owner of what sounds like an older home you best get comfortable with DIY.

    • +1

      Hoping that's just about what may be required. Fingers crossed
      It is a well maintained old house about 40 years old - has no major issues as per a professional house inspector and also to our eyes. Hoping this repair will not cost much, we do have a budget for maintenance that may arise for such an old house. I am a pretty much hands on type, hoping can fix this without needing trades

      • -1

        don't fall off the roof

        • Don't know why you're being downvoted, sounds like pretty solid advice to me.

      • I kind of think this is best approach. You know there will be things to maintain, and just hope they aren't too expensive.

        We expected some fairly expensive maintenance on our new place, but thought the price was pretty good so won't get bill shock when the time comes.

        • learn how to DIY and buy a set of tools ozbargin and ex demo tools… Goes a long way when it comes to repairs

          Say you need to build a new fence wooden to seperate the rear and the front. about 200 dollars worth of fencing materials will save u a long way…

          now say you looking to change the light fixtures i suggest looking at bunnings i buy that batons and stick them up there follow the instructions and away i go

  • +2

    You will find that the contract would have allowed you a retraction only in case of a major structural damage identified following a building inspection by a set date. After that date has passed, this condition no longer applies. A minor roof leak as described will not qualify as a major structural damage. The roof damage will most likely be considered as normal wear and tear. Therefore, the onus is on you to repair it. If the Vendor is nice she may allow you to repair it before settlement, otherwise it would be after settlement. The final inspection is just to confirm that there is no malicious damage to the property and all chattels as promised or present at inspection are still present. If you do not settle, the Vendor's damages will be on you. I wold suggest that you speak with your conveyancer. This would not be first time they would have come across such issues.

    As you say that the Vendor is nice, maybe see if she is willing to have it repaired as part of the insurance policy. Because the leak has become visible after the recent storms in Melbourne, she may be able to get it done through insurance. However, the Vendor will have to pay the building insurance excess. If it is a small silicon tube job, then the excess would be higher than the repair costs.

    • Thanks spal. Getting it done thru the insurance is an interesting approach, will suggest it to the vendor and see if she is onboard then

    • I don't think that's right. I always make contract subject to building inspection to MY satisfactory, and usually ask for anything I want to be remedied or I will withdraw from the deal. The only bluff the vendor has is that if I've paid for that inspection, it will be money down the drain is I walk away.

      I'm not so sure (but I don't know) that a damaged ceiling isn't sufficient breach of contract. I believe the vendor had an obligation to maintain the ceiling in it's non-damaged state as at time of purchase.

      I really doubt insurance will cover a leaking roof unless a tree went through it or similar. Inadequate design or maintenance is not covered by normal home insurance.

  • +3

    Op read [this] (https://www.consumer.vic.gov.au/housing/buying-and-selling-p…)


    Pre-settlement property inspection

    You are entitled to inspect the property at any reasonable time during the week before settlement. Contact the agent to arrange this inspection.

    The contract of sale requires the seller to hand over the property in the same condition as when it was sold. If, during the final pre-settlement inspection, you find that something is damaged or not working as it was on the day the property was sold, you can request a repair. Check all the items listed in the contract are there and in the right condition.

    • +1

      Thanks mbck. Please see my update below post conversation with my conveyancer

  • On The property inspection, did your inspector actually get into the roof space and look? I think you might need to get quotes to fix the damage, and then try and negotiate with the seller but there's nothing that can force the seller to play ball…

  • This is probably a minor issue and when a buying a second hand house there will be some minor problems which are perfectly OK to sell a house with defects.

  • +4

    Have now spoken with my conveyancer/solicitor who has advised that we may propose the repair to the vendor, however cannot force the vendor to carry out repairs for the leak especially since now the contract is unconditional. Only conditions on the contract were the subject to finance and house/pest inspection clauses - both were successful and have now lapsed. Hence unless we see the condition of house to be substantially different in our inspection just prior to settlement compared to the day the contracts were signed, its pretty much up to the vendor if she wants to repair or not. I understand "substantially different" would basically mean a large area waterlogged or ceiling falling in etc

    Since we had already checked with the vendor and she has refused to repair, seems we will have to carry out the repair ourselves post settlement. I am a relatively good DIY-er and fingers crossed, its a minor repair within my skills.

    • Stay safe when you climb on the roof and watch out for ACM when working in the roof cavities.

      • Thanks. Hoping the repairs can be carried out without needing to disturb any ACM, though :)

    • Read general condition 24 of the Contract of Sale.

      Ask your conveyancer why she hasn't mentioned this to you.

      • 24.2 The vendor must deliver the property to the purchaser at settlement in the same condition it was in on the day of sale, except for fair wear and tear.

        Condition 24 only applies if damage has occurred between inspection and settlement. OP would need to prove that the leak only started after the inspection - which it very likely didn't. This clause doesn't cover things that were missed during an inspection.

        • I'd also argue that a leaky roof is fair wear and tear. I don't know of any older house that hasn't had a leaky roof.

          • @Name: No way is a water leak and ceiling damage fair wear and tear. Neither would occur during the regular course of occupying the property.

            It wasn't "missed" during inspection. The water leak and damage is now there. It wasn't previously.

            $5000 can be withheld the settle the issue post settlement. Providing the vendors solicitors notice of this will usually provoke action.

            Sounds like OP has resolved the situation anyways.

            • @Typical16-bitEnjoyer: I'm confused. Are you saying a roof will never leak from normal wear and tear? How do leaks in roofs happen then?.. It's weathering from being exposed to the elements. Different if it's a brand new building/house which op said it isn't.

              • @Name: Fair wear and tear from the time of initial inspection? Like 30 days? No.

                • @Typical16-bitEnjoyer: The initial inspection isn't going to look at every single tile on the roof and determine that that particular tile or that particular screw is going to fail in 5 days. It was probably on its way out and had been for ages from normal wear and tear.

                  And it's highly unlikely the owner got up on the roof after signing the contract to create a leak.

                  Things wear away over time from normal wear and tear and eventually fail at an unpredictable point in time, it's just OPs bad luck that it happened to fail through normal wear and tear over the past how ever many years or decades the house is old at the time or just after signing contract.

                  If the roof was brand new and had a leak then it would be followed up by the roofer as a brand new roof shouldn't fail immediately. But buying an old second hand house comes with issues caused by fair wear and tear.

    • Sounds like you should have hired a better conveyancer/solicitor.

    • dang for now on I will read all posts before replying to earlier ones :)

      I suspect that if the water damage isn't substantial then the problem probably isn't. (We had water literally pouring into our house, and as far as I know we still only have to fix the leaking tiles and will be all good.) Yours sounds much less substantial :)

  • +3

    Hey, kinda related, funny story - went to an auction the other day in Sydney and they were burning oil in pretty much every room. Nice for those attending, right?

    In addition, the agent advised me that the carpet had just been upgraded for the sale. How nice of them, right? Saves the buyer from spending the money, at least I thought at the time.

    Well, my friend who was with me has a very sensitive nose and caught a whiff in the corner of the kitchen of …. pet urine (they suggested dog) and my guess as we discussed it later was that they covered it up but the urine would be down through the floorboards and a major job to fix for the happy successful bidder, some poor old bloke that was unknowingly excited to snap up the place on the day.

    What I learnt that day - be aware of all the little details when inspecting a property and try to spend more time there just sniffing around (moisture would also have a smell if you stick your head in the ceiling cavity or under the house etc.

    • -1

      Oh no… this situation you're describing? That'd be classed as the vendor hiding stuff, and could lead to a very expensive lawsuit (and then judgment) against them if the purchaser wanted to take it in that direction.

      A savvy (and unscrupulous, and risk-taking, and has-a-lot-of-spare-time) purchaser could take advantage of this. Buy it at a good price to begin with, "discover" the urine issue, threaten to sue and/or actually sue.

    • Guess that's why its prudent to have a pre-purchase inspection done. Hopefully issues such as the above would be caught by professional eyes (and nose) of a competent inspector!

  • +2

    Exact same thing happened to me at the start of the year when I bought. Nearly word for word!
    It seems like a big deal now but save yourself the headache and worry and just get in there and start enjoying.
    We tried but couldn't get a fix from our vendors either.

    Once we were in I tried myself to fix but ended up having to get a professional in to fix the leak.

    Congratulations on your purchase, don't sweat the small stuff though I know it sucks.

    • Thanks ajwhi!

  • If ever you want to have a leaking roof, a metal 'flat' roof is your best bet. I had a badly installed flat roof and after years of frustration with it leaking, a friend and I replaced a large section of it AND the sisalation in an afternoon, cost about $1k. One of my better achievements in this life.

    The top edge must be 'weathered' by bending the lip up ~6mm as the lower edge might need the same but bending it down. So see if the rain tracked back up underneath the lower edge. Were the gutters clean and empty of leaves, etc. and free flowing?

    https://www.nfrc.co.uk/docs/default-source/form-protected-do…

    It's not Joe Common Plumber that you need, it's Robert Roofing Plumber. Joe's more experienced roofing older brother.

    • A tiled roof can be even easier to fix than metal. I had half a dozen cracked roof tiles on my house. The guy installing my solar panels offered to replace them (with some spares tiles I had) for free. Took him 5 mins and cost me nothing.

    • +1

      Thanks. the vendor has apparently inspected the roof and has determined the rain water may be getting via the sheet overlap- a section appears to have flared. she has put some plastic/tarp around the area.

      Since the vendor is now proceeding with insurance, the assessor will be in later this week- however not sure when the job can go ahead given the time of the year. Hopefully we don't see much wild weather in the next few weeks

  • Welcome to home ownership. A small leak in the roof is part of owning an older house. Its typically not expensive to fix. I've fixed mine in multiple locations over the years with a bit of roof and gutter silicone.

    https://www.bunnings.com.au/selleys-310g-roof-and-gutter-sil…

    One tip though, if they're not offering to fix it and there is a lot more rain forecast. Ask if you can get up into the roof and put a bucket on a piece of board between the rafters, under the hole. Or even see if you can get out there with a ladder and plug it up. The mold and damage will only get worse the more it rains.

  • A bit of advice to all home buyers here: do a pre-exchange inspection prior to exchanging contracts. It is far too late to identify issues at the pre-settlement inspection. Very basic but almost nobody does it.

    • Not only that, but you need to do an inspection just before settlement - e.g. if the house burns down on the day of settlement and you only realise it the next day, it's tough titties. If you catch it before settlement, you can rescind the contract.

  • -3

    This stuff normally gets inspected by the council before the settlement.

    • +4

      Really? In which country?

    • I think the council will only do an inspection if they want to declare a property unfit for human habitation. :P

  • Why don't you post a photo of it, so we can judge for ourselves?

  • Renters4life

  • Does the roof have sarking installed? With heavy storms, you can get situations where the water is blown under the roof tiles. Does the roof have eaves? Heavy rain and blocked gutters, can overflow into the ceiling and walls. Eaves will not stop this but does help.

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