building defects and buyers agents

[orchidsrbest]

hi, newbie here...and not even sure this belongs in this area, so forgive me if it is misplaced.
I hired a buyers agent to help me purchase IP. they found a house, newly built, put in an offer but there was another interested party with a higher offer. the vendor said they would accept my offer with no conditions. my broker says I should be ok for finance and evaluation. so far no dramas there
BA says because it's newly built, should be ok. I ask for building inspection anyway against BA advice. turns out lots of building defects. building inspector tells me that cos it's a newly built house, should be covered by builders insurance so shouldn't cost them anything to fix. I have asked the BA to pressure the builders to fix defects and conveyancer says they are not obligated to fix anything
can anyone suggest what I can do?
thank you in advance

 

[westminster]

Do you mean that you put in an offer with no 'subject to' clauses because your BA said you would be ok for finance?
I'm thinking you did it subject to a building inspection though.
What type of defects were found?
I wouldn't buy it with defects and I wouldn't be going ahead to finance without a written agreement that the things will be fixed within xx days.
Do not go any further forwards and be prepared to bail on the deal if they aren't going to agree to fix it.

 

[Peter_Tersteeg]

A building with lots of defects, the answer is simple. Tell the BA it's not suitable and ask them to find another property.

It may be under warranty, but I wouldn't want the hassle of chasing up the builder to get the problems fixed.

 

[orchidsrbest]

thanks for your quick response westminster and bear. much appreciated.
I have already signed the contract without building and finance conditions. I know it sounds naive but finance wise no problems. the building is structurally sound, no major defects but all the other things that should have been picked up by the BA (or is my understanding of their role incorrect?) eg leaking taps, BIR not closing flush, painting, concrete shoddiness, damaged roof tiles....
what can I do about it now? or is my only option to just get settlement out of the way and fix it before tenants rent? from what the building inspector said, they are not major defects but as a new building, it is bad work by the builder and they should be fixed while still in this early stage and covered by insurance, not his words but that's what I got from it. so I could be wrong? can someone tell me if this is correct or direct me to where I can find the information?
from what my conveyancer told me, the vendor is not obligated to fix it and I understand that, and the builder has no obligations to me but surely there r rules that builders must abide to?

 

[Terry_w]

You shouldn't be taking legal advice from a conveyancer or building advice from a buyers agent.

Sounds like they are minor defects to me. What else is wrong with it? What about warranties on new buildings? Which state?

 

[Peter_Tersteeg]

It's worth mentioning that building reports always show up a lot of minor defects, they tend to try show just about everything that could possibly be a problem. Most of the items are rarely an issue or could even be considered fair wear and tear.

 

[orchidsrbest]

hi Terry, there are more than 10 defects, some minor some not so minor, but not major either. according to the building inspector, as it is a new house, it falls below standard for minor defects. I'll attach the report in next post.
it's in victoria.
can you explain warrantee for new building? because I think that was what the BI was referring to. apparently it lasts for 2 years and can be negotiated between owner and builder (is this correct?). I've been reading up on it but any advice on the best way to go about this for the best outcome?

 

[orchidsrbest]

bear, yes some were so minor, I didn't bat an eyelid but some seem like they could be an issue for later especially if I want to sell. that's why I went directly to the BI and asked him some very novice questions.

 

[Terry_w]

hi Terry, there are more than 10 defects, some minor some not so minor, but not major either. according to the building inspector, as it is a new house, it falls below standard for minor defects. I'll attach the report in next post.
it's in victoria.
can you explain warrantee for new building? because I think that was what the BI was referring to. apparently it lasts for 2 years and can be negotiated between owner and builder (is this correct?). I've been reading up on it but any advice on the best way to go about this for the best outcome?

http://www.consumer.vic.gov.au/hous.../building-warranties-insurance-and-insolvency

 

[orchidsrbest]

thank you all, I will research today and action. wish me luck!
ps I'm not ever going to get a BA again....it has been a lesson well learnt and I should have just listened to my own instinct rather than their 'we've bought thousands of properties, so we're experienced....' mumbo jumbo

 

[vaughan]

... the other things that should have been picked up by the BA (or is my understanding of their role incorrect?) eg leaking taps, BIR not closing flush, painting, concrete shoddiness, damaged roof tiles....

Your understanding of a buyers agent is not correct. A buyers agent finds properties for you to consider buying.

These building defects are the things that you should be considering when making the purchase. A building and pest inspection can assist with identifying all the problems.

 

[Andrew_A]

Sounds a little strange and the advice about no conditions and 'it will be right because it's new' appears to show an impressive appetite for taking on risk on your behalf.

Plenty can go wrong with a new property and would expect a lot of the defects you noted would be easy to pick up by someone with experience buying property who actually inspected carefully and paid attention.

 

[Jacque]

... the building is structurally sound, no major defects but all the other things that should have been picked up by the BA (or is my understanding of their role incorrect?) eg leaking taps, BIR not closing flush, painting, concrete shoddiness, damaged roof tiles....

As others have already pointed out, your understanding of the BA's role here is incorrect. A BA is not a building/pest or strata inspector and the onus here lies with you to ensure that you are satisfied with the outcome of such reports before unconditionally proceeding with a purchase.

I do agree with Andrew, however, that the action taken by the BA (who is acting for you) by providing such advice to not obtain an inspection report seems very risky indeed. We always recommend buyers obtain building/pest/strata inspection reports, despite the age of any property. It is totally up to them if they choose to do otherwise. I hope all turns out well and this doesn't sour your experience of purchasing again in the future. Best of luck

 

[orchidsrbest]

thanks everyone for the comments.
Jacque, it's put me off BA's but not properties and I'd probably do it again rather than spend all my time and money on having actual fun and partying!
back to the problem at hand, am I doing everything I can at the moment? any other suggestions?? re building defects

 

[devank]

Seriously.... Any new house is going to have small issues and any reputable builder should fix them.

We built a new house 3 years ago. Builder fixed any urgent issues immediately. Then they asked us to write down all other issues as we find them. Almost a year later they came, assessed our concerns and fixed them if they were reasonable.

I would expect a BA to check obvious major issues like cracks or asbestos... but not go through every single item. I don't know about you but I don't really go and check every single taps

 

[westminster]

Have you spoken to the Builders Association of Vic or the Housing Industry Association in Vic? They would be good people to call to get advice on.
All new constructions have an initial maintenance period and then a longer warranty on the construction.
The warranty is transferrable and the builder should fix any defects for you. Have you tried talking to the builder?

 

[orchidsrbest]

devank, I thought surely there has to be some pride in workmanship. I checked up on the builders and they are a family owned building company but not small and have a reputation in Victoria for over 25 years. so should I contact the builders directly or hire someone??? If hiring someone, where can I find a reputable reliable person? how do I determine that? eg what are some questions I could ask them?
other errors by BA have surfaced and really has me pissed off and I'm not sure if this is the place to air it.

 

[orchidsrbest]

Westminster, I wasn't sure I could. so I should contact the builder? i think I read somewhere that it is transferrable but will read some more before I ring. should I ring first and then email so i have a written record of things?

 

[devank]

so should I contact the builders directly

I would give that a go first. If they are in the business for over 25 years then they will do something (I hope). Don’t be confrontational and put them in defensive mode. Be polite and pleasant. Even better to get your wife (assuming you are a guy) to make the call

 

[orchidsrbest]

Talked to consumer affairs Vic and they recommend sending email so that I have a record of 1) builder was contacted and made aware of the faults and 2) attempts to resolve issues. They also told me that for new buildings, non structural defects were covered for 2 years and was transferable to new owners, contract or not.
So I wrote a nice letter about the minor defects and was going to send it myself but BA tells me to send it through conveyancer. Should I send it myself or via the conveyancer? Would it be viewed negatively by the builder if I send it via the conveyancer?