HELP! My solicitor failed to warn me?

[renhoekk]

Hi guys,

I was in the process of selling my unit. The buyer's solicitor did the usual body corporate search and came back with a whole bunch of things that disturb me. It includes engineers reports about "latent and patent cracking in the building due to inadequate design", "contigent liabilities that will be or should be incurred to rectify the defects", and "insufficient insurance in light of these defects".

Here's my question: my solicitor did not turn up ANY of this when I purchased the property 18 months ago (yes, these records turned up by the other solicitor existed prior to me purchasing). I'm freaking out now that I won't be able to sell my property. Do I have any recourse??

 

[Aaron_C]

I think it depends on what your instructions to your solicitor was. Did you explicitly ask him to do a body corporate search and complete due diligence on your behalf? Or were the instructions far more vague?

 

[travelbug]

Did you instruct your solicitor to do a strata search? Doesn't sound like it, otherwise you would have received a copy.


A solicitor usually recommends you get a strata search but I don't think they are negligent if they don't.

I always get a strata report for the reasons you stated. You never know what's lurking.

How old is the unit? Is there any recourse from the builder?

Doesn't sound to good for you. Sorry.

 

[renhoekk]

Did you instruct your solicitor to do a strata search? Doesn't sound like it, otherwise you would have received a copy.


A solicitor usually recommends you get a strata search but I don't think they are negligent if they don't.

I always get a strata report for the reasons you stated. You never know what's lurking.

How old is the unit? Is there any recourse from the builder?

Doesn't sound to good for you. Sorry.

Yes, I had a strata report done. The report says there are no serious defects, that the Body Corp has enough funds to cover any maintenance needs and that there was nothing that would prejudice a buyer.

 

[Aaron_C]

But telling him to do a strata search is different from asking him to read it for you and advise on it.

 

[weg]

It is possible that those items mentioned in the engineers report aren't as serious as they sound, and that's why your report came up as fine.

Even ordinary building inspections can sound more sinister than they actually are.

Before you go into a full blown panic and attempt to negotiate further with your buyer, investigate this yourself, going as far as getting an engineer or building inspection person to interpret the report and assess the defect if you have to.

I would have thought something serious would have been mentioned to you in discussion, or you would have pick up that there were issues, well before this.

 

[renhoekk]

Guys, I also saw the written report before I purchased. No mention of anything that would raise red flags. Solicitors can only report on what records are available to them....I'm wondering if the Body Corp failed to disclose these things. Surely there has to be some sort of law about these things.

 

[nww]

Guys, I also saw the written report before I purchased. No mention of anything that would raise red flags. Solicitors can only report on what records are available to them....I'm wondering if the Body Corp failed to disclose these things. Surely there has to be some sort of law about these things.

Are you sure all the defects mentioned are still current.

I just purchased a townhouse with some very worrying problems however
further investigation by myself found them all taken care of by the builder
but had not been signed off as done by the body corp members in the meeting
notes so every time a search has been done by a potential purchaser it would
have put them off. as it did for me until I dug deeper.

This is probably a reminder to all with body corps to make sure your meeting
notes are up to date to show all issues have been addressed and corrected
to help the sale of your investments.

 

[Sunfish]

Don't even THINK about going near the share market.

 

[cu@thetop]

Yes, I had a strata report done. The report says there are no serious defects, that the Body Corp has enough funds to cover any maintenance needs and that there was nothing that would prejudice a buyer.

Who did the report?

Is this a unit complex at Woolloongabba?

 

[lizzie]

Is there any way you can talk to the engineering to get a better idea of what he believes is actually wrong?

We've bought properties with P&B's that would make you think the house was about to fall down - but on discussion with the inspector, none of the problems are actually "problems" but rather something to be aware of and some serious butt covering for the just-in-case.

 

[The Y-man]

Are you sure all the defects mentioned are still current.

...or the opposite....

Renhoekk, are you sure the engineering report was not commissioned and received by the strata in the past 18 months during your ownership?

Did you attend the AGM or recieve minutes of the AGM?

The Y-man

 

[evand]

Tell the potential buyer to take it or leave it. How old is the block?

 

[renhoekk]

Hi guys....the engineer's report was done in 2005. A safety inspection was done in 2008.

I am really worried I have bought something I can't sell. The engineer's report and other stuff did not show up when I did my strata records search. But it's sure as hell showng up now. The building might not be about to fall down, but who wants to buy into a place and incur hefty repair costs?

Here are some excerpts from the report:

"There is significant chance of structural collapse of a section of the blade pier at the southwestern corner of the building [this is the pier holding up an external straicase]. It is recommended that this pier be demolished and rebuilt"

"Lineal beams supporting the north edge of the roofline over the balcony area in Unit 5 were deflecting significantly. The excessive deflections are indicative of inadequately sized timber framing elements. It is recommended this be rectified by the installation of appropriately designed and supported supplementary roof framing members".

 

[Aaron_C]

Just hope you find a purchaser who doesn't do their DD.

 

[weg]

Have any units sold between you buying and now?

What were the sold prices for these, compared to those pre 2005?

Just curious?

 

[twobobsworth]

What's happening with your buyer?

 

[laurencei]

Hi guys....the engineer's report was done in 2005. A safety inspection was done in 2008.

I am really worried I have bought something I can't sell. The engineer's report and other stuff did not show up when I did my strata records search. But it's sure as hell showng up now.

Did YOU do the strata records search, or did your solicitor?

Yes, I had a strata report done. The report says there are no serious defects, that the Body Corp has enough funds to cover any maintenance needs and that there was nothing that would prejudice a buyer.

Guys, I also saw the written report before I purchased. No mention of anything that would raise red flags. Solicitors can only report on what records are available to them....I'm wondering if the Body Corp failed to disclose these things. Surely there has to be some sort of law about these things.

So what reports are these - vs the one you have now? i.e. when are they both dated?



So I guess the question is; *if* the report existed prior to your purchase, and your solicitor did the strata search (not you), but didnt turn up this missing report - who's fault is it?

 

[renhoekk]

So I guess the question is; *if* the report existed prior to your purchase, and your solicitor did the strata search (not you), but didnt turn up this missing report - who's fault is it?

Most likely the Body Corporate's fault for failing to disclose. Any search is limited by "the records provided" etc etc.

The reports in question are dated 2005 and 2009. I purchased in 2010.

If the Body Corporate needs to impose some sort of levy for repairs, I could potentally sue for my portion of the bill. That's about it.

None of that helps me sell my unit tho :/

 

[Andrew_A]

Most likely the Body Corporate's fault for failing to disclose. Any search is limited by "the records provided" etc etc.

The reports in question are dated 2005 and 2009. I purchased in 2010.

If the Body Corporate needs to impose some sort of levy for repairs, I could potentally sue for my portion of the bill. That's about it.

None of that helps me sell my unit tho :/

Interesting example, hope it turns out well for you as it's obviously a lot more serious than the cracking you often see on strata buildings.

Has there been any quoting done on the cost of fixing the problem?