Buying and not noticing faults

[touchingcloth]

Hi all ,

Just a hypothetical scenari?

If I were to put in an unconditional offer for a property (after 3 visits -no builder inspection though), which is accepted, and pay the 10% deposit etc.

Then just before settlement, I notice that the floating floor 'bounces' in some areas due to being laid on an uneven floor (didn't notice before)

Can I rescind the contract by claiming that the fault wasn't noticed before because it wasn't there or was hidden by furniture?


Thanks

 

[boomtown]

If the contract is unconditional - no. You accepted it warts and all.

*unless* its something so incredible that it destroys the very basis of the contract - like for example the house was knocked down and a highway overpass was built in its place before settlement.

 

[touchingcloth]

If the contract is unconditional - no. You accepted it warts and all.

*unless* its something so incredible that it destroys the very basis of the contract - like for example the house was knocked down and a highway overpass was built in its place before settlement.

Surely thats a little harsh though for the buyer. It seems as though there is a little grey area there as to what is acceptable

 

[Perp]

Surely thats a little harsh though for the buyer. It seems as though there is a little grey area there as to what is acceptable

No grey area - boomtown's absolutely right. Unconditional contract - you could now discover that the building's about to fall down, or isn't approved and has to be demolished, or all sorts of horrific things, and would still have to settle.

If it's only a bouncy floorboard, consider yourself exceedingly lucky!

 

[Peter_Tersteeg]

This is why you make an offer subject to a building and pest inspection.

You can only rescind the contract if the property is in a different condition to when you signed the contract. Even then you may only be able to claim fair cost of repairs and other losses, or simply delay settlement until the problems are fixed.

 

[RumpledElf]

This is why you make an offer subject to a building and pest inspection.

QFT.

But be warned, those things aren't always 100% accurate. The place we got last week was certified structurally sound and had been treated so was pest free, but there was a lot of timber damaged that needs replacing.

 

[touchingcloth]

So should it go legal, it is upto the buyer to prove that the house has deteriorated since signing of contracts, or is it upto the seller to prove that the house was always in that condition?

 

[peastman]

So what happens if you refuse to settle? I presume you would loose the deposit, but can vendor enforce settlement?

 

[Perp]

So should it go legal, it is upto the buyer to prove that the house has deteriorated since signing of contracts, or is it upto the seller to prove that the house was always in that condition?

As the person wanting to rescind the contract, I would think it would be up to the buyer to prove deterioration.

So what happens if you refuse to settle? I presume you would loose the deposit, but can vendor enforce settlement?

The vendor could sue for specific performance, or re-sell to another buyer and sue for any losses (eg lower purchase price, extra RE commission, extra marketing costs etc).

 

[boomtown]

If you are thinking of trying to get out of a contract because of a bouncy floor that you didnt notice before - you shouldnt be.

It could cost you tens of thousands of dollars to get out of the contract, potentially hundreds of thousands of dollars.

 

[Peter_Tersteeg]

QFT.

But be warned, those things aren't always 100% accurate. The place we got last week was certified structurally sound and had been treated so was pest free, but there was a lot of timber damaged that needs replacing.

Whilst it would be hard to prove, shouldn't this then pass the liability onto the building inspector?

 

[boomtown]

Depends on your contract with the building inspector. I expect it would say something like "all care, no responsibility".

 

[RumpledElf]

Whilst it would be hard to prove, shouldn't this then pass the liability onto the building inspector?

Not really, there was a separate report with the house that listed *that* damage.

 

[pulse]

Lift the floor... grind it with a $30 diamond cup grinding wheel, re-lay the floor.....!


Seriously if you have cold feet then say so, a bouncy cheap floating floor is no reason to not buy a house.

At worst replace the floor

Cheers
Pulse

 

[landlubber]

It can't be stated more simply ... "unconditional contract" means just that "NO CONDITIONS." You should never make unconditional offers unless you are very sure of yourself , your finances etc.

So what happens if you refuse to settle? I presume you would loose the deposit, but can vendor enforce settlement?

If you refuse to settle (after the contract has gone un-conditional, cooling off period expired etc)... here's the process in general. Firstly you forfeit your deposit. If you then don't settle on a property contract, the vendor can auction the property, sell it to the highest bidder and sue you for any shortfall. There is no escape. You'd also be up for his legal costs. Bottom line is don't sign the contract unless you genuinely intend to proceed with the deal.
LL