Termite damage and structural issues

[write2abdul]

Hey Folks,

I was trying to buy a property recently which has serious termite damage + serious structural issues which has come up in my building and pest report. Thanks to my building and pest guy who was awesome and patient in doing the inspection which saved me 80K on a house on top of the price I was paying.

Needless to say, I did not proceed with the purchase.

Do agents or vendors have to disclose termite damage when selling a property?

 

[Scott_Snap]

Ouch

We building and pest guys can be handy

 

[Ace in the Hole]

What kind of structural issues were there?
And was any termite damage clearly evident or was it all hidden.

Just saying that if the structural issues were quite serious, any chance you would have been able to suss them out prior to putting your 0.25% down?

 

[write2abdul]

Yes indeed.. building and pest guys saved me here..

And BTW I asked the agent and vendor to give back my 0.25% which they refused which I thought was bad. They didn't have anyone apart from me in the open home and the agent has the listing still on the website while I was under contract

Why is the law more biased towards sellers in NSW. What if the vendors and agents just keep advertising every week, get into contract and the buyers back off due to bad reports. Are they not making free money ?

Does this money go to the government or the vendor and agent keep it

We building and pest guys can be handy

I might not have gone so hard on the agent in a public forum you don't want them dragging you into a court room.

 

[write2abdul]

The house is great

What kind of structural issues were there?
And was any termite damage clearly evident or was it all hidden.

Just saying that if the structural issues were quite serious, any chance you would have been able to suss them out prior to putting your 0.25% down?

 

[Tano]

Im pretty sure you dont have to disclose anything in an Auction, its buyer beware. But for other sales once the agent is aware of new information then this MUST be passed onto prospective buyers.

 

[write2abdul]

What if the agent doesn't disclose about past termite damage for any future buyers after me?

Seriously, this is a fail in NSW. The law should be helping the buyers too.

If the Agent/vendor disclose that they are issues, its upto the buyers to take the property at a reasonable price. If not and the buyer finds problem which were not disclosed, they should get their 0.25% back.

Im pretty sure you dont have to disclose anything in an Auction, its buyer beware. But for other sales once the agent is aware of new information then this MUST be passed onto prospective buyers.

 

[Propertunity]

Why is the law more biased towards sellers in NSW.

It isn't. The purchaser pays his 0.25% for which he/she gets total control of the property for the next 5 business days. Vendor can't sell to someone else, or for more money, or refuse to sell.

Does this money go to the government or the vendor and agent keep it

Vendor gets it.

 

[Propertunity]

What if the agent doesn't disclose about past termite damage for any future buyers after me?

Agent must disclose once he/she knows, as it is a Material Fact.

If not and the buyer finds problem which were not disclosed, they should get their 0.25% back.

Impossible ask, although I understand the sentiment. Who decides the size of the problem? Some people would want to pull out, others would cover it in a lower offer and fix themselves when renovating.

You do your own DD - P&B and such and make you decisions as a purchaser after that. No use complaining about the rules of the game.

 

[write2abdul]

But my agent has not taken the property off the market.

The property was listed on the web and nothing specified that it was under contract plus the agent also had big auction advertisement on the property during the 5 days while it was under contract with me

As I see many properties are listed as "under contract" on the web when you are under contract but the agent was not doing this. Did he knew about the issues earlier and not disclose it ?

And I was the only person in the open home which why I was asking the 0.25% back from the vendor and agent.

It isn't. The purchaser pays his 0.25% for which he/she gets total control of the property for the next 5 business days. Vendor can't sell to someone else, or for more money, or refuse to sell.

Vendor gets it.

 

[Propertunity]

But my agent has not taken the property off the market.

Yes, it was off the market. If someone else wanted to buy it in those 5 days that you had control, they could not have.

Yes, it was not marked on the internet as "under contract" and yes, they were still showing the property, but that does not mean anyone else could have purchased it. They do this in an auction sales campaign for the very situation they now find themselves in - they lost a sale (you) and need a backup buyer/s.

 

[write2abdul]

Agent must disclose once he/she knows, as it is a Material Fact.

What about the owner. After he read my report he was giving clarification. "Hey, ya we had past termite damage and we had fixed it"

The agent will always says he is unaware of any issues for the first time but if I ask now he will say ya as you are aware they are issues

Impossible ask, although I understand the sentiment. Who decides the size of the problem? Some people would want to pull out, others would cover it in a lower offer and fix themselves when renovating.

You do your own DD - P&B and such and make you decisions as a purchaser after that. No use complaining about the rules of the game.

Ya I get what you are saying. Its difficult but this will mean at least the vendor disclose any known problems to the purchase

 

[write2abdul]

Then if the property is listed as auction, then why keep the 0.25% deposit if you know you will have prospective buyers and will be sold in auction

Sorry lot of questions but appreciate your experience here.

Yes, it was off the market. If someone else wanted to buy it in those 5 days that you had control, they could not have.

Yes, it was not marked on the internet as "under contract" and yes, they were still showing the property, but that does not mean anyone else could have purchased it. They do this in an auction sales campaign for the very situation they now find themselves in - they lost a sale (you) and need a backup buyer/s.

 

[Propertunity]

Then if the property is listed as auction, then why keep the 0.25% deposit if you know you will have prospective buyers and will be sold in auction
Sorry lot of questions but appreciate your experience here.

Well first of all because they don't know for sure & certain that it will sell at auction......and secondly, because that's what the law says they're entitled to do.

In future, if you don't want to put your 0.25% deposit at risk, then do your P&B before you make the offer and get it accepted. Of course you may get gazumped doing it this way - but that is the flip side of the risk coin.

 

[write2abdul]

Ya but the sydney market is so hot that no agent will accept.

Maybe I need a buyers agent help like you

QUOTE=Propertunity;1237138]Well first of all because they don't know for sure & certain that it will sell at auction......and secondly, because that's what the law says they're entitled to do.

In future, if you don't want to put your 0.25% deposit at risk, then do your P&B before you make the offer and get it accepted. Of course you may get gazumped doing it this way - but that is the flip side of the risk coin.[/QUOTE]

 

[TMNT]

sorry to derail a bit, but ive never pulled out of a sale before,

so in nsw is it min 0.25% holding deposit, followed by deposit, follwoed by sale?

ie for the property to be undercontract at all, 0.25% min must be paid???? which is non refundable under any circumstance if the buyer pulls out for any reason?

I remember putting a property under contract with no deposit for 2 weeks because I was overseas, but the vendor had accepted my offer

 

[monalisa]

How did you manage to get cooling off?

I thought when buying properties before an auction, you need to give an unconditional offer?

 

[monalisa]

so in nsw is it min 0.25% holding deposit, followed by deposit, follwoed by sale?

ie for the property to be undercontract at all, 0.25% min must be paid???? which is non refundable under any circumstance if the buyer pulls out for any reason?

Yes, this is correct.

 

[beachgurl]

Someone will get burned at auction I expect.

Lots of termites in some areas. Is the exception to not find any.

 

[write2abdul]

Not sure. Glad I was able to get off

How did you manage to get cooling off?

I thought when buying properties before an auction, you need to give an unconditional offer?