Building Inspector That Recommended Demolition for a 20 Year Old House during Settlement

zrorz on 05/05/2019 - 08:52
Last edited 06/05/2019 - 09:15 by 1 other user

A friend of mine is selling his ~20 year old home in North Western suburbs of Melbourne. The buyer has paid the agreed initial/deposit amount and passed the cooling off period which puts my friend in the settlement period of a house sale. There is no lean or modification to the house since the time it was built, the only thing is a single skirting board that is coming off leaving a gap of about 5cm long by 1mm between the cornice and roof in the corner of the room.

The buyer, 2 weeks into the settlement period decided to call a building inspector. The inspector came and left, a few days later the buyer claims that the inspector said the building has structural damage and required it to be demolished. Apparently this is also reported to the council, the buyer now wants to cancel the sale. When my friend asked for the report from the inspector, the inspector claims that the homeowner, my friend has no right to it and only the buyer. A copy of the report was also sent to the council by the inspector.

Is this time for a lawyer or a separate second building inspector? My friend is dumbfounded by the fact that just like that despite living there all this time someone can just declare it unsafe and required demolition without specifying what is wrong.

UPDATE: so at this time he is going to to hire another building inspector and a lawyer/solicitor to force the contractual sale. My friend's real estate agent was confused at the initial inspector's conclusion, their own people who valued and took photos of the property saw nothing that would indicate heavy structural damage or else they wouldn't have advertised it. Despite that the real estate agent is now liable to take it off the market permanently due to the demolition order by the building inspector. So even if this was a ditching attempt by the buyer my friend cannot sell his house or live in it and will have to move out until it can be proven that it has no said structural damage. As for the contract it was handled by the agent and my friend said it was a regular sale contract but I, myself personally do not know what was specified.

Home & Garden

Comments

  • Seedy seed on 05/05/2019 - 08:58
    +13

    Talk to your solicitor. If they have no way out the contract then either he gets a free deposit or they buy.

  • bobbified on 05/05/2019 - 09:00
    +8

    The buyer has paid the agreed initial/deposit amount and passed the cooling off period which puts my friend in the settlement period of a house sale.

    Assuming a Contract of Sale has been signed? It sounds like the buyer is looking for ways to try to get out of the contract and I would not be surprised if that building inspector is the buyer's friend. He could even be completely bluffing!

    You could seek some initial advice from the person who drew up/reviewed the contract.

  • Melb69 on 05/05/2019 - 09:02
    +9

    I can't see how he can now get out of it. The cooling off period has passed. All those inspections should have been done prior to any offer. Their only get out clause I would have thought is if there is anything in the contract. Can he get his solicitor or the conveyor to assist. IMO. I do however see it from the buyers point of view if they get an inspection and now find its structurally unsound. They would surely lose their deposit for the inconviencace.

    A lot of sales rely on the sellers sale to enable them to move to their purchase. Its a bit of a mess.

  • schmuppet on 05/05/2019 - 09:19
    +2

    Is there a "subject to building inspection" condition in the contract of sale?

    • barbarella on 05/05/2019 - 10:01

      usually a building inspection is carried out before the actual signing/committment to buy…

      • djkelly69 on 05/05/2019 - 13:09
        +2

        Depends on the state

  • TheBilly on 05/05/2019 - 09:53
    +3

    Something to declare the building uninhabitable would have been visible or known for many years prior to the sale. If the buyers cooling off period has passed. I would just tell the lawyer to throw the contract in their face now and just go through the contract process. From what I understand unless there is a contract clause that says this offer is subject to a building inspection they cannot just pull out of the sale after cooling off period. They would now have to go to court and somehow prove that your friend new the house was uninhabitable.

  • CalmLemons on 05/05/2019 - 10:13
    +4

    Yes, unless subject to a condition like subject to finance or subject to building inspection even if the report was true, even if the house was collapsing, it is buyer beware as it is not a new house.

    This is a perfect example of how not to be a model citizen. The better way for this to occur is for the buyer to negotiate with the vendor if they want to get out of the contract, maybe keep half the deposit, not low moral reasons like this.

    This is typical of the behaviour of consumers these days, everyone is a victim.

    • PAOK11 on 05/05/2019 - 13:24
      +5

      lol.. Dear Mr Vendor, I would like to rescind the contract. Can you please find it in your loving heart to give me a 50% reduction on the forfeiture of the deposit ? It only equates to 25,000.

      Your faithfully, regretful purchaser

  • barbarella on 05/05/2019 - 10:16

    when building inspections have been done on houses that I have sold the inspector always tells me the result - why the secrecy this time??

    • whooah1979 on 05/05/2019 - 10:56

      The property inspector was engaged by the buyer. They may have an agreement with their client to keep the report confidential.

      • barbarella on 05/05/2019 - 19:06

        yes….always engaged by the buyer…and as I said, the inspector has told me the result

    • Love a bargain on 05/05/2019 - 17:01

      Professional liability usually means that a report would only be officially distributed to the client

  • 87percent on 05/05/2019 - 10:49
    +4

    get an independent building inspection done, could just be the building inspector is the buyer's buddy or something

  • 2jzzzz on 05/05/2019 - 11:20
    +10

    This is just a last ditch attempt to get out of the contract.

  • JimmyF on 05/05/2019 - 11:34
    +2

    the buyer now wants to cancel the sale

    What does the contract say?

  • Baysew on 05/05/2019 - 11:35
    +2

    Get your friend to speak with the professional that they engaged for the transition of the sale - Conveyancer/Solicitor. That is what they are being paid for.

    Many properties are sold as land value only, so the condition of the house may not even be relevant.

  • Randxyz123 on 05/05/2019 - 11:55
    +1

    Yeah, your friend should seek advise from the agent and their solicitor.

    It is probably the buyers' mate and they are using them as an attempt to get out of the sale.

    Was there a subject to an inspection clause in the contract? If not your solicitor will tell the buyer to bugger off and pay up.

  • try2bhelpful on 05/05/2019 - 13:11
    +1

    I agree with others here; check what the contract says and if it isn't subject to inspection, and your friend hasn't tried to conceal any issue with the house, then I don't see that the purchaser has a leg to stand on. Not sure what notifying the council is going to get them either. If the sale does go through then the purchaser has just provided the relevant authorities with the ammunition to allow them to condemn the house. If I was your friend I would talk to a lawyer to see where they stand. Best of Luck.

    • Lexus101 on 05/05/2019 - 13:25
      +1

      The Sales & Purchase of a property is deemed irrevocable once the cooling period is over. The buyer would have been assumed to have taken all precautions and due diligence before a deposit is paid and cooling period lapse.

      Even if the house is deemed unsafe afterwards, if the Seller did not mislead or cover up a blatant and dangerous fault, the Buyer would then have to take possession and demolish it himself to rebuild.

      You as the Seller can and if desired, keep the deposit and out of goodwill release the Buyer from this contract but get a Lawyer involved to word the legalities. Also consider that the Agent has to get paid nonetheless.

      I would contact council to find out if allegations is indeed true or false. I suspect it is false.

      Hope you manage to resolve this.

    • [Deactivated] on 05/05/2019 - 13:40

      Not sure what notifying the council is going to get them either

      Or could it be a bluff? Perhaps Op should call the council to confirm , if he hasn't done so already.

      Edit: This is what happens when you don't refresh before replying to a comment :( What Lexus101 said.

  • djkelly69 on 05/05/2019 - 13:12
    +1

    Tell your friend to speak with their solicitor or conveyancer, but unless it was subject to a building report, then there is very little chance the buyer can get out of the contract.

  • shaybisc on 05/05/2019 - 14:32
    +1

    Smells like BS. Is there any reason other than it-does-not-exist why the buyer would not produce the report?

  • Donaldhump on 05/05/2019 - 16:06

    This is total bull sh*t

    Your fbuyer owns the report and can give a copy to the seller at their discretions, this story total bluff

    Tell them to settle or keep deposit and sue them for performance.

    Either way if they have no clause for inspection or it has lapsed, then though sh*t. Their problem should have done inspection before hand.

    Sue the pants off them

    • Amaris on 05/05/2019 - 16:16

      It seems the OP's friend has only asked the inspector for the report. He should, through his solicitor, ask the buyer for a copy.

      • Donaldhump on 05/05/2019 - 18:27

        How would he know the inspectors name and number

        Story is utter bull sh*t

        • tomsco on 06/05/2019 - 08:05

          How would the seller know? The inspector would contact the agent to arrange an inspection time. Agent could pass the details onto the seller.

  • derrida derider on 05/05/2019 - 16:25

    Its pretty obvious that the "building inspector's report" is purest fiction. They want to get out of the sale (probably couldn't get finance) and are tryng to bluff - complete with "reporting to council" (why would they do that?). As others said, put it in your solicitor/conveyancer's hands - it looks like your friend has got themselves a free deposit

  • blitz on 05/05/2019 - 21:21
    +7

    Please keep us updated OP!

  • Euphemistic on 06/05/2019 - 06:46
    +1

    Couple did things to do. Def talk to the conveyancig solicitor about what the contract actually says. Also contact council to see what has been reported. It would seem to me that council could not withhold information like that from the home owner if it relates to the house being unsafe. In fact the council should be forwarding it to you immediately. Smells fishy to me.

  • BobD on 06/05/2019 - 07:33
    +2

    I had a buyer pull a similar stunt which was communicated by my conveyancer service. I replied back via the same service and said "Proceed or I'll see you in court". I never heard another word and the house sale was completed on the due date. Stand your ground.

    • tomsco on 06/05/2019 - 08:06

      Haha. Brilliant.

  • [Deactivated] on 06/05/2019 - 09:04

    If the sale is subject to conditions such as a building report, sale of another property or finance the contract can be rescinded at any time. Has happened when selling my own home and purchasing others.

    Also know people in the construction industry, volume builds in Melbourne of that age were poorly constructed my numerous companies.

  • kiitos on 06/05/2019 - 09:57

    the only thing is a single skirting board that is coming off leaving a gap of about 5cm long by 1mm between the cornice and roof in the corner of the room.

    I don't understand what this is trying to describe. Skiring board connected to cornice and ceiling? What?

  • Randxyz123 on 06/05/2019 - 10:44

    So your friend didn’t get a solicitor to handle the sale and the money transfer part ??

  • Amaris on 06/05/2019 - 11:20

    someone can just declare it unsafe and required demolition without specifying what is wrong.

    Don’t think a private building inspector can give a demolition order. Only Council should be able to do that, and that also after giving a chance to the owner to dispute and/ or repair

  • panorama on 06/05/2019 - 12:01
    +2

    This post is pure fantasy, where do people dream up these absurd posts………………..

  • Tee Rex Arms on 06/05/2019 - 12:46

    This is juicy and I hope we’re updated as to the end result haha

  • plugmeister on 06/05/2019 - 13:17

    Can you post a link to the listing?

  • 82norm on 06/05/2019 - 21:04

    Total scam. Buyer probably can’t get finance and is panicking, so trying to bluff with some structural bullsh1t. Your friend is not obligated to get any building report. Some things here, don’t seem to add up…..

    Agent is liable to take it off the market for sale. Why, who says?
    Demolition order by Inspector… I don’t think so. Only council can make that order, but as others have mentioned, there would be options for some recourse where possible.
    Can’t sell the house….rubbish. Buyer is renegging on contract, therefore forfeits non holding deposit. Your friend can put it back on the market.
    Move out until proven there is no structural damage…. says who? Another bluff.

    LEXUS01 sums it up perfectly.

    Let us know the outcome.

  • Ughhh on 07/05/2019 - 12:34
    +1

    Even if the house is inhabitable and full of asbestos, surely buyer still can't back out of the deal for that reason. For all the seller knows, buyer just wanted the land and rebuild new.

  • ihbh on 07/05/2019 - 14:40

    Recommended Demolition for a 20 Year Old House during Settlement

    That's for the seller to worry about as he owns it now. He still has the land value.

    He should have engaged a building inspector before the end of the cooling off period.

  • Amaris on 10/05/2019 - 19:06
    +3

    Come on OP, give us updates!

  • maximum on 12/05/2019 - 08:37

    So has council said he cannot sell or live in the house? If they have they will have to provide a detailed report as to why.

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