Faulty Building Inspection Report - What Is The Process to Deal with Their Insurance Company?

Hi there.

I bought a 50 year old house recently in an auction and after moving in I came to know two major issues in the house, which was not by any wording, been mentioned in the building report .

One. In the storage area which is under the house, it gets flooded whenever there is heavy rain and footage wall have 99% moisture reading most of time .

When i called plumbers/drainage experts they did mentioned by examining the walls and the deep white efflorescence marks it has is clear indication of the issue is more than 2-3 year. Must be a long standing issue and must be known by previous residents .

However it was not mentioned even as any risk or as any minor/major defect in the inspection report. and dampness was mentioned as no issue .

Two. Borer damage in the wooden logs under sub floor .

When I did call the pest control guys to do treatment then looking at the damage he did mention that the kind of damage it has is not which can happens in few months .However he did suggest if I need to know exact age of damage then need to call some bio-specialist who can tell the exact age by taking some sample and examine in lab.

This was also not indicated in the report and it was just mentioned as no borer found .

When I did approach to the company who did inspection report then the inspection guy came and found the issue is still existing and agree yes they seems to be in place prior and longstanding .

He was saying he could not do such detail inspection at the time because the area was blocked by the owner's stuff stored in those places.

However in the report there are some comments about other defects those belongs to same area . (i.e Subfloor and under house storage room ) .

long story in short …..

After too much following up i have been offered two options

Option 1. They are happy to refund me the fee which they have charged for the inspection report which is approximately $1400.

Option 2.They have asked me if I do not opt for option 1 then I need to follow up with their insurance company and provided me with the contact details .

My concern is due to heavy moisture and presence of such dense borer, I was in panic situation and called multiple plumbers/Drain professionals to provide me the solution and they did try to check the issue and do some fixes which has costed me heavily.

Considering the risk of termite infestation due to presence of moist ground, I got the termite treatment done along with pest control which has cost me another $4000 approximately.

Is there any one who has come across such situation or aware of how to deal in such issues . Please help me to know what to opt either option 1 or option 2.

If I go for option 2 then what would be the process to take it further with their Insurance company? Do they get agree to reimburse the expenses which may occur to fix these issue and the money which I have already spent.

Or they try to take the support of legal language (like weather condition change, report is based only on visual inspection and this is standard report) which is in the building report to safeguard their client interest and avoid to pay until as buyer I take it legally and prove the fault of the inspection company.

Looking to hear the advice from knowledgeable people here .

Thanks in Advance .

Comments

  • 50 year old, in ACT, did the report mention the Asbestos?

    • Thanks , it did mention the standard details where can be asbestos with % and the year house built , however no inspection was done for asbestos .

      Do you have any idea how to deal with such situation how to take it further with option 1 or 2 .

      • I’d take option 1. It’s an old house, they all have issues, I don’t think it’s worth legal action.
        I think because your new to this, your working yourself up and worrying more than you should. If you like I can give you free Asbestos check. Yes it has Asbestos.
        Houses, especially old ones are expensive to maintain and a constant source of stress. That’s life.

    • I would take option 1. The insurance route to me seems a stressful event with likely a negative outcome I suspect.

      A building inspection report is only ever as good as the person doing it. With older or any buildings really, there is always some issues with something.

      Has the house got wooden stumps? If so, with moisture in the soil these will rot faster than normal.

      I have bought a few shops in the early 2000s which has rising damp issues.

      If you dug down into the soil you hit water. It is a hard problem to solve. Buy yourself a moisture meter and look at the moisture reading on the walls above. If they are anything above 25% or so you will have paint peeling off with time. You can consider products like this https://www.ebay.com.au/itm/232849719566 I tried the rod version of this, but I feel it only had limited success. These dry rod products have a shelf life, especially the cream version. Do some research to understand what this product is doing and if the wall in question can benefit from it.

      I also ended up digging a circular hole into the ground until I hit a clay bed about 1 meter down, I surrounded the hole with aluminum pieces made up from offcuts from a roller door, which were hammered down until I hit the clay bed. The joints between the sections of roller door let water through but not dirt. I removed all the soil from the inside of this area and dropped a sump pump in the bottom. This was pumped out automatically and lowered the moisture content of the surrounding area. This probably slowed the effect, but it is hard to measure the results. In the 15 years this has been operating the hole has always remained free from dirt at the bottom. The pit would fill up a number of times per day especially after rain, summer - not so much.

  • +1

    Its going to cost you alot more money than $1400 to fix those issues. Option 1 you get $1400 back.

    Option 2 you can potentially get their insurance company to pay to fix those issues. Which could get very expensive.

    So talk to a solicitor.

  • +2

    ohh ok ..i did talk to some lawyers who are specialized in such cases and some of them who seems honest said that Buildings reports are with many clauses and with so many legal conditions so you would end up a lot in paying my fee and i can not guarantee of win.

  • but my concern is then having such clauses then any building inspector can then mention the faulty details and be not liable due to the legal clauses they have in the building report . Is there not any Agecy where i can go and get the legal advice for reasonable charges or for free.

    Thanks

    • Try legal aid.

      • Thanks Richard

    • Where do you expect to get free legal representation? Legal Aid generally don't handle civil matters, particular matters like this. They also tend to be means tested, and if you've just bought a house, there is a fair chance you won't meet that. A Community Legal Centre can give you some one-off advice, but I don't think they'll tell you anything you haven't already been told by the lawyers you've spoken to already. You're going to have to engage your choice of private solicitor if you want to proceed.

      I agree with what you've already been told. The clauses in a building and pest inspection do offer some protection to the inspectors. That's not to say that you don't have a case, but you could easily spend more than the cost of the repairs in legal expenses.

  • Jump onto www.beforeyoubid.com.au ASAP.
    Can fix your issues/ get you a report in as little as 24 hours.

    what state are you in? I swear every property should have them used as it is (profanity) ridiculous nowadays how many issues occur over it.

    Really tragic.

    • Thanks HasibA

    • +2

      How does this help OP in any way if they already own the house?

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