Terminate sale contract due to illegal building?

[mr_milkman]

There's two weeks until settlement goes through on my cottage. Now suddenly the purchaser has requested to view council house plans and permits in case there has been illegal building completed by myself or the previous owner/s.
Can the purchaser use this as an excuse to cancel the house sale?
There is no clause in my sale contract stating this. In fact the purchaser said that they wanted a quick settlement and wouldn't bother with a building inspection if I agreed to a lesser price.
I agreed as I needed to sell ASAP.
Now I'm pretty sure I haven't completed anything that would require permits, but I'm unsure of the previous owner/s. If there has been illegal building etc, can the purchaser use this as an excuse to legally pull out of the sale?

Also if I refuse to allow them to view the plans can they also use this as an excuse to legally pull out of the sale?

So worried @_@

Thanks for any advice and input all!

 

[laurencei]

I'm not a lawyer - but unless there is a building & inspection clause - they got nothing and your safe.

The only issue might be the bank wont lend against the property (or values it too low) due to that...

 

[BV]

mr milkman
I don't think you have anything to worry about.
Is the property in Tassie?

 

[mr_milkman]

the property is in Tassie

 

[marg4000]

Best to consult the solicitor handling the conveyancing.
Marg

 

[Bradsdad]

The purchaser has just decided to check all this now?

Best call your conveyancer/legal rep 1st thing in the morning but I'd suspect that the cooling off period is well past.

 

[Perp]

Can the purchaser use this as an excuse to cancel the house sale?

No.

Also if I refuse to allow them to view the plans can they also use this as an excuse to legally pull out of the sale?

No, but they can probably view the plans without your permission, anyway. These sorts of documents are usually public records.

I've just read a couple of other threads and I'm getting stressed out just reading them! Not because of what's happening to you, but by how wound up you are getting over really very trivial stuff. Please do take the advice somebody else gave you and take a Valium - or two - and perhaps wash it down with an ale!

Now, I'm off to meditate and try and shake off your frantic energy... are you always this tense?

 

[mr_milkman]

. are you always this tense?

yeah these days I am unfortunately. I had a few really bad experiences all in a row with lawyers, real-estate agents etc and there's a lot riding on this sale. So recently I get paranoid over this stuff, because before when I let it ride it came back and bit me in the butt.
Just today for example a solicitor has doubled the amount of money he wants to release his caveat and I've got less than a week to get him to abide by a Supreme Court costs assessment or I can't complete settlement on my end due to the caveat....

Back to the original topic though, I heard back from my conveyancer and he told me that I was correct, they have no right according to the contract and he denied them. So that was a bit of good news.

 

[Perp]

Just today for example a solicitor has doubled the amount of money he wants to release his caveat and I've got less than a week to get him to abide by a Supreme Court costs assessment or I can't complete settlement on my end due to the caveat....

Yep, that's pretty stressful!

But surely if you've had a costs assessment, the authorities are empowered to release the caveat in exchange for payment of that amount, whether the solicitor likes it or not, aren't they? (Don't know the relevant laws, that just seems like common sense.)

Also, I note you refer to your "conveyancer". This sounds like a very complicated transaction from a legal perspective; I think you're insane if you're not using a solicitor to advise you on this transaction... extreme false economy, IMHO, as you may well discover if this solicitor with the caveat gets serious about trying to stuff things up for you. I'd be getting a solicitor involved on your side today.

 

[65fbk]

In my experience this is what happens:



Buyer: the shed/pergola/carport is not council approved

Vendor: ok, i'll pull it down before we go unconditional

Buyer: Oh no! But I want to keep it!

Vendor:


Sale goes through, no probs................

 

[Lofty]

Our solicitor inserts the following into the Special Conditions of all our Contracts:

"Condition of property - no warranty by vendor - acceptance by purchaser
Subject to Section 52A of the Conveyancing Act 1919 and the Regulations under that Act:
(a) the purchaser acknowledges that any improvements erected on the property are being sold in their present state of repair, condition, including and defects, latent or patent, or encroachments;
(b) the purchaser further acknowledges that the purchaser buys the property relying on the purchaser's own inspection, knowledge and enquires and that the purchaser does not rely on any warranties or representation made to the purchaser by or on behalf of the vendor; and
(c) the purchaser cannot rescind, make any objection, requisition or claim upon the vendor OF request the vendor to effect any work, repair or treatment or delay completion of this contract on account of any want of repair, incomplete works, or dilapidation or infestation to the improvements erected on the property, or any encroachments by or upon the land or for fair wear and tear occurring between the contract date and completion."

If you have a look at your Contract, you'll hopefully find your Solicitor or Conveyancer has included something similar.

Cheers, Paul

 

[chilliblue]

In my experience this is what happens:



Buyer: the shed/pergola/carport is not council approved

Vendor: ok, i'll pull it down before we go unconditional

Buyer: Oh no! But I want to keep it!

Vendor:


Sale goes through, no probs................

Or it can go...sorry not interested in we have to pay for a structure that is not approved and we need to knock it down.

At the end of the day, a vendor knows if a structure is approved or not. If one is present without the authority then they need to suck it up if it becomes stressful because of its discovery.