Seller to finish renovation after settlement

[babysteps]

Hi.

I am thinking of putting a cash offer for a property that needs to be sold for a fast settlement. However, the owner has started a couple of jobs around the place that is yet to be finished like putting up the retaining wall and new fence, and replacing the vanity in the bathroom. He has indicated that he is willing to get those jobs done, and he wants to rent the house back after settlement.

What would be our best course of action?

Could we put down a condition in the contract stating that the owner must finish off those jobs within the tenancy period, say in 3 months, since they most likely won't be done by the settlement time? Would the condition be binding after settlement?

What kinds of conditions could you actually put into a contract?

Thanks!

 

[boods99]

You're asking for trouble babysteps...
I would adjust the offer to take into consideraton the work that needs to be done, and then get it done yourself after settlement.

Boods

 

[brendio]

Hold back from the purchase price an amount equal to say 120% of the cost to get someone in to do the work. Put the money is your solicitor's trust account to be released upon completion of the tasks to the satisfaction of the buyer. If the work is not done by a specified date, this money is forfeited and can be used by the buyer to rectify the situation.

Basically, you need to hold this bond as security to ensure the job will be done. It should be more than it would cost the seller to do it so it gives them an incentive to get the jobs done quickly to release the extra funds.

 

[softmonkey]

Get quotes for the work and subtract from the offer. The seller has every incentive to cut corners on the work. Retaining wall without proper drainage, fence not weatherproof, bathroom not sealed properly. You have nothing to gain by them doing the work, and potentially a lot to lose.

 

[babysteps]

Hi guys. Thanks for the good advice. I might just adjust my price rather than holding back the fund as that sounds a bit complicated. Thanks again!