Granny flat has no form 21 final certificate

Discussion in 'Property Investment - Other' started by htopg, 20th Mar, 2015.

  1. htopg

    htopg Member

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    Hi
    There are 2 weeks left to settle for a property with a newly built granny flat.
    There are a few things that have not yet finished. For example, electricity has not yet separated from the main house. There is a gap between window and wall. It should have been filled with cements.
    I asked owner for warranty certificate and he said he does not have it.
    I got the builder's name off him and I called the builder.
    I was told that the owner still owes the builder $11250 and the owner does not want to pay. So the builder stop working on it.
    At this stage, what should I do?
    Thanks in advance.

    The actions that I can think of at the moment:
    1. ask owner to pay $11250 to the builder
    2. ask owner to reduce $11250 from sales price and I will pay the builder
    3. negotiate with this builder and ask how much he will charge me to finish the work (hopefully much less than $11250)
     
  2. scha9799

    scha9799 Member

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    Sorry, I got a bit confused about what position are you standing here.

    Are you the tenant in the main house ? or are you building a granny flat ?


    Also what's impact on you ?
     
  3. htopg

    htopg Member

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    I am the buyer of the property having 2 houses (the old main house and 5-week old granny flat) on the land.
    Owner did not disclose that he still owes the builder $11250 when I signed the contract.
    I asked for builder warranty and I was told that there is none.
    I contacted the builder yesterday and found out that the owner has not yet (and it seems that he has no intention) made the final payment.
    As a result, the following items are outstanding
    1. electricity of granny flat is not separated from main house
    2. 2 lights outside are not installed
    3. Cement is missing for one side of window frame, resulting a gap between window frame and brick wall.
    4. No form 21 issued
    5. No builder warranty

    The impact to me is that I might need to pay $11250 on top of my offer.
     
  4. Jacque

    Jacque Buyers Agent and Bookworm

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    You need to speak to your solicitor or conveyancer pronto as it appears the correct due diligence hasn't been carried out prior to exchanging on this property. Why wasn't the final occupation certificate for the GF checked before proceeding (or agreed to supply in the clauses of the contract)?
     
  5. htopg

    htopg Member

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    Rang up and checked with the council, and council said that the granny flat has been approved for "relative accommodation".
     
  6. RetireRich101

    RetireRich101 Member

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    The correct question to ask council: does the gf have a final occupational certificate.

    Interim oc or approved is not the reply you want to hear at this stage.
     
  7. scha9799

    scha9799 Member

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    Are you purchased at discounted price ?

    Is the property settled ?

    If the property is not settled then put this into the contract. otherwise don't settled it.
     
  8. pinkboy

    pinkboy SS Lookerafterer

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    Deadset......read the guys post in its entirety before you ask these questions. He already repeated his post for you the first time you asked when his post was perfectly fine.

    The answers to your questions are actually in both the original and duplicated post.


    pinkboy
     
  9. htopg

    htopg Member

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    I am not sure if I can get the following condition into the contract:
    "Final occupancy certificate must be obtained before I settle"

    Given that my finance has been approved, the contract will become unconditional at 5pm on Monday.

    I am really scared that the original builder might come after me for $11250 in the future or he could just report to council to get tenants evicted.
     
  10. scha9799

    scha9799 Member

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    Hi htopg,


    If I was you, I would ask my solicitor and put the clause into the contract before it goes into unconditional.

    1) it will attract the seller's solicitor and the seller attention that you are aware this issue. ask the seller to pay the outstanding amount and get the OC.

    2) it will give you advantage for asking discount from the purchase price to pay the builder.
     
  11. DaveM

    DaveM KFC Buyers Agent

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    Stepping back for a moment.... as the property is in QLD, you have confirmed that the council does allow independant leasing of the granny flat?

    You have mentioned it was approved for relative accomodation, which sounds like it cannot be leased to an unrelated party.
     
  12. htopg

    htopg Member

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    I have checked with the council. There is a draft plan that allows "unrelative" accommodation. The draft plan will be in effect within months.