Pre Settlement Issues

• 

  stirlo on 11/12/2021 - 20:23

  +5

  The biggest issue is do you think the vendor can’t get the price you agreed or higher if they sell it to another buyer? In a rising market the seller has the advantage as they might find another buyer who is happy to purchase even with these defects and cancel the sale to you.

• 

  TheBird on 11/12/2021 - 20:27

  +1

  Usually there's an adjustment when there's a change in the working order of fixtures or included chattels from the inspection when the sale was signed to when settlement finally occurs. That being said, if they were broken earlier or you failed to test the condition prior to now, you can try to get the seller to cover the costs, but as a legal requirement, you're going to cop it on the chin.. In real estate, caveat emptor is basically the law of the land.

• 

  AdosHouse on 11/12/2021 - 20:28

  -1

  This is why you have a clause in the contract, subject to professional inspection.

• 

  djkelly69 on 11/12/2021 - 20:55

  +4

  Assume this is NSW based on your profile?

  If so, you accepted the property as is at exchange (unless a condition to the contrary was included). If that stuff was not working then, it doesn't need to be working now.

  So was it like that at exchange?

• 

  brendanm on 11/12/2021 - 21:08

  +2

  Oven not working would be a couple of grand max, leaking tap likely a $2 washer. No hot water in random places could be a bit bigger issue. As above, at this time, if you don't want it, someone else will buy it as is.

• 

  SF3 on 11/12/2021 - 21:23

  +2

  Unless the property is brand new, you “inherit” it as is and things will need servicing or replacing sooner or later.

  It’s like buying a used car privately.

• 

  bigticket on 11/12/2021 - 21:23

  +6

  Post discovery defects/issues do not count as the property is sold as is. As a buyer, these need to be identified and negotiated before signing. For example, if you did not ascertain that hot water is not available everywhere, it your oversight and you wear it.

• 

  JimmyF on 11/12/2021 - 22:02

  Some of the issues such as oven not working, laundry tap leaking, no hot water in some areas of the house could be quite expensive to fix

  So you tested and confirmed all these things worked before putting a offer in on the place right?

  Or do we just need to cop it on the chin and write it off as another situation where the vendor has complete power over us poor buyers!

  Yep, you need to cop it on the chin if you ASSUMED these things 'worked' and then found out at pre settlement they don't. There is no room for complaining. The vendor is correct to claim this was the condition when you inspected and agreed to purchase.

• 

  AndyC1 on 11/12/2021 - 22:08

  Was any of this checked or included in the building inspection you got done?

  The buy before you bid building inspection would have:
  1) Not picked up the oven as they did not check it or the cooktop or any appliances worked. Getting an oven repairs could cost a min of $200 and more likely %400 to $500 or more on a fancy oven.
  2) They would have spotted the leaking tap if it was leaking when the inspection was done.
  3) Hot water - it was checked with the exception of the washing machine, but the laundry sink about 50cm away was checked.

  As for what to do, unless you can find something in the building inspection that says the items were checked and found to be working then you are up the outback dry creek bed with a canoe you are dragging.

• 

  LJW127 on 11/12/2021 - 23:00

  Thanks for all your feedback. Did get a building and pest inspection but as AndyC1 pointed out appliance checks were unfortunately not covered in this inspection. Will have a look again and see if there is anything I can prove was checked and is now no longer working. Tough job to check the entire house for issues, we did check quite a few things pre signing the contract but definitely didn't check every fixture in the house. I wonder how many first home buyers would even think of this? And even when issues are identified what incentive does the vendor have to resolve them with 10 other buyers waiting who just as keen as us? I guess we have learnt the hard way although considering the current state of the market I doubt it would have swayed our decision anyway. Thanks again

  • 

    yellowfever on 12/12/2021 - 22:49

    I checked every tap in the house with hot water and checked the gas stove when we bought our place.

    I didn't check the oven, every light switch, evap cooling, heater and external taps.
    Things get missed due to inexperience

    Before our settlement I noticed the toilet seat was broken and demanded that to be fixed. The legal team on the vendor was quite annoyed about me raising this after signing contract and potentially holding up settlement but I played the game cuz I knew they would fix it and not hold up settlement aswell.

    Sometimes you gotta play the game. At the moment the money is in your bank, not theirs. If they want the money on settlement it may be in their best interest to fix some of the issues.

    But contractually like everyone has said, you have no recourse. Take it in the chin if you have exhausted all avenues.

• 

  [Deactivated] on 11/12/2021 - 23:02

  +1

  If you're not prepared to walk away AND have in your contract that it was subject to an inspection that picked up these issues, you're up a creek without a paddle.

  You can ask the vendor to address the issues, they might, they might say no, in which case if you were still subject to inspection (not unconditional) you can typically walk away (Not legal advice!). If you don't want to delay settlement and they say no to fixing any of the issues you have no choice but to suck it up, you're buying the property, issues and all.

  If it's just a few thousand dollars of things to repair that's not entirely unexpected (something could break the day after you get it). If there's tens of thousands of dollars then you're going to have to weigh up delaying settlement, if that's even still an option.

• 

  garetz on 12/12/2021 - 00:29

  -1

  Your only leverage is threatening not to go ahead with the sale.

  • 

    djkelly69 on 12/12/2021 - 05:59

    +1

    OP definitely does not have that option.

• 

  cjbowden on 12/12/2021 - 01:50

  Kinda sucks, but unless you know these items were ok when you made the offer, not much you can do.

  Next time, include a clause that all appliances, lights and PowerPoints are working at time of settlement. If they push back on this, you know somethings not working!

• 

  payless69 on 12/12/2021 - 08:26

  -4

  Seriously? How hard is it to check the stove and taps before signing the contract? Nah easier and be a keyboard warrior and some member here will offer a free fix?

• 

  TimmyTims on 13/12/2021 - 13:15

  I've seen in contract of sale that all fixtures/ fittings must be in good working order at handover (in Vic). I'm not sure if this is standard/ law or something added in by a savvy buyer.
  As others have stated though, the vendor can simply go, "ok" and cancel the sale on you and sell to the next inline. You could argue they may need to pay agent fees regardless because they won't reasonably attempt to save the sale and will lose time by cancelling the sale to try get them to negotiate with you.

  You really need to weigh everything up and is the cost of fixing the problems less than the hassle of finding another place that may have a whole new batch of problems.

• 

  Keplaffintech on 13/12/2021 - 16:56

  You should have inspected these things (or had a professional do so) during the cooling off period.