Vendor Not Allowing B&P Inspection?

[noisuf]

Hi Everyone,

I'm happy to say I've just bought my first interstate IP in Brissie!!!

We did not do a B&P inspection as we were planning to do it this week prior to auction this Friday. I also have a report provided two years ago when the vendor bought.

Opportunity to submit unconditional came up so I went for it.

We put in the contract clause below (and agreed by vendor) in special conditions with the aim of doing B&P inspection soon so I can organise for prevantative measures to be executed upon settlement.

However, the vendor has come back saying that she does not want a B&P to be done before settlement. Um, a B&P inspector is providing a trade too right?

"The vendor agrees to allow access to the property by the Buyer’s chosen tradespeople prior to settlement for the purpose of inspecting and/or quoting purposes"

The agent is going back to the vendor tomorrow to try to convince the vendor.

 

[DaveM]

If the vendor wont allow a B&P, run a mile. Using a vendor commissioned report from 2 years ago is not good enough.

 

[NedKelly]

Just tell the vendor you won't settle unless and until she complies with the terms of the agreement. Put the ball in her court. Personally I wouldn't touch anything without an inspection. Did you have a good close look at it yourself before making the offer?

 

[Rolf Latham]

Id put a case of beer on it that its not the seller that the problem, but the sellers soli being a Pain !

ta
rolf

 

[Prop_Pursuit]

Hi noisuf

How many times have you or other tradespeople, valuers etc inspected the property after the contract was formed? Check the contract for the amount of times you or anyone can access the property and for what purpose.

Thanks

 

[Ed Barton]

Id put a case of beer on it that its not the seller that the problem, but the sellers soli being a Pain !

ta
rolf

arrange an electrician, plumber or feng shuie specialist to go through. don't tell them that a bp inspector will be going through at the same time. they are unlikely to know.

you've committed to the contract so surely the bp inspector is just trying to work out what works you should do rather than should you buy?

 

[sanj]

We put in the contract clause below (and agreed by vendor) in special conditions with the aim of doing B&P inspection soon so I can organise for prevantative measures to be executed upon settlement.

.

"preventative measures" could be nothing or could cost tens of thousands of dollars, are you comfortable with the risk?

ive got something under offer at the moment that has come up with close to $20k worth of costs to fix from the inspections ive done (rewiring needed, significant amount of plumbing, some roof work, some other structural stuff etc)

 

[noisuf]

Thanks all for the replies. I risked looking stupid not doing b&p inspection before submitting unconditional but considering the scenario as you will read below, I took the risk.

The agent came back today saying the vendor's solicitor does not recommend allowing the b&p inspection considering there have been instances where buyers reneg on contracts based on b&ps even after auctions!?

If the vendor wont allow a B&P, run a mile. Using a vendor commissioned report from 2 years ago is not good enough.

B&P report 2 years ago was something they commissioned as a buyer when they bought the property themselves. I would usually be saying the same myself, run away, but in this case, the seller has made a $70K loss (including transfers two years ago and selling commission) compared to what they paid 2 years ago. They really just want to move on as they have purchased overseas and moving. They've cancelled auction and obviously don't want to risk anything.

Just tell the vendor you won't settle unless and until she complies with the terms of the agreement. Put the ball in her court. Personally I wouldn't touch anything without an inspection. Did you have a good close look at it yourself before making the offer?

I had a good look underneath the house as it's raised legal height. Roof was good. Insides good. It's in quite a good condition, legal height raised queenslander.

I also bought through a buyer's agent who eventhough is not a b&p inspector, has been around them enough and did a very good visual inspection for me.

Found out it has been inspected this year in Feb with sign off from inspection for pest.

Id put a case of beer on it that its not the seller that the problem, but the sellers soli being a Pain !

ta
rolf

Me too, they were in distress yesterday, selling at big loss. Solicitor wanting to give them 100% settlement I guess. Thing is, even if the place falls down, they have an unconditional from me. The agent had to them out to lunch to console after.

Hi noisuf

How many times have you or other tradespeople, valuers etc inspected the property after the contract was formed? Check the contract for the amount of times you or anyone can access the property and for what purpose.

Thanks

Contract signed yesterday, first time someone from my side inspecting is valuation tomorrow. The contract doesn't limit the amount of times.

arrange an electrician, plumber or feng shuie specialist to go through. don't tell them that a bp inspector will be going through at the same time. they are unlikely to know.

you've committed to the contract so surely the bp inspector is just trying to work out what works you should do rather than should you buy?

That's what my solicitor says, get someone to do B&P who can also quote repairs after inspection. Vendor side is really holding hard on a B&P inspector is not a tradesperson.

Yep, just what works I need to do....not trying to reneg on contract. That's what I said to them.

"preventative measures" could be nothing or could cost tens of thousands of dollars, are you comfortable with the risk?

ive got something under offer at the moment that has come up with close to $20k worth of costs to fix from the inspections ive done (rewiring needed, significant amount of plumbing, some roof work, some other structural stuff etc)

Considering report from two years ago, amount I paid and inspection done in Feb this year.......yeah, I'm ok, it's risk I calculated in taking when opportunity arose. The property had wiring redone already, new plumbing.

 

[Aaron_C]

The clause you've inserted does not give rise to you reneging on the contract even if the B&P inspector report came out bad....the vendor's solicitor is telling fibs

 

[HomePage]

If the vendor wont allow a B&P, run a mile. Using a vendor commissioned report from 2 years ago is not good enough.

I wholeheartedly agree. The sheer fact that they don't want a B&P would make me want to get a very thorough one done. And if the vendor's reasoning is that people pull out after B&P, well there's probably a very good reason for that - it FAILED! Run a mile while you still can!

 

[Peterw]

If I have read correctly, you have entered into an uncondiotional contract, so its hard to see what problems the seller has. If the contract allows for access by trades people to inspect with a view of doing quotes, etc, perhaps thats they way you should word the description of the inspecting person, ie builder to inspecty with a view to quote on an extention. he will need to view the existing building, to identify the appropriate way that he can remove walls, alter things, as part of th extention process. Maybe that will work.
Appreciate that you have bitten the bullet and made the decision the way you have. Let me know if you need some trades people recommendations.

 

[Ed Barton]

The clause you've inserted does not give rise to you reneging on the contract even if the B&P inspector report came out bad....the vendor's solicitor is telling fibs

there is still a risk the buyer could reneg causing large costs to enforce the contract with the possibility of not being able to enforce it depending on the buyers financial situation (which the vendors solicitor doesn't know). the vendor's solicitor is trying to reduce that likelihood, although as others have stated he may have increased it by suspicion of 'what's wrong if you won't let us do it'

the vendors lawyer is not telling fibs. they just have a different interpretation of 'trade' than the buyers lawyer, designed to protect their clients interests.

 

[noisuf]

Hi all, thanks once again for the interest and feedback.

There is a good outcome, I can do a b&p! I had a heart to heart with the agent who I met when I visited Brisbane to look at properties. I knew some of the story but I now know more. The vendors are $75 k down as compared to purchase 2 yrs ago. 50/50 split between mother and daughter which the mother convinced the daughter to get into property investment and now she's made a loss.

They were concerned I would ask for a discount after b&p came back with repairs. Being an unconditional i can't but the were afraid and their solicitors told them they didn't need to grant if they didn't want to.

The agent knows my character, I actually had an opportunity to reneg yesterday due to a different issue which I didn't. My plight to reduce vacancy time gave ok.

The daughter cried on monday when contract was signed......then mother cried. Can't help feeling sad/bad.....i know it's a business transaction but still.

Thanks peterw for the offer....i'll let you know if i need contacts.

 

[noisuf]

Gday all! B&P was done last Tuesday, no major dramas.

On the other hand, I had a B&P done on another property pre-auction and the result was a scary proposition. B&P is a definite must for me from now onwards after the experience today. :|

 

[MsAli]

The daughter cried on monday when contract was signed......then mother cried. Can't help feeling sad/bad.....i know it's a business transaction but still.

That is sad noisuf. The first home I bought was a mortgagee. It was a couple in their early 30s with a less than a year old baby. The lady had put in money in two businesses and got cheated and had to sell this property around at least 25k below market value at the time. At first I felt terrible buying it, but I got told that it was a business transaction. What can you do...it's unfortunate. That is why most investors suggest to keep emotion out of it as opposed to making poor decisions. Was this a bankruptcy?

 

[noisuf]

Keeping emotions out during my everyday work is easy but I find it difficult for my own investments...during the negotiation and for the other party. I do need to get better.

People did give me the advice if I didn't pay the amount I did, maybe they would have got even less.

The mother is moving back to europe, bought a place. Daughter moving to europe too with partner. So they wanted to sell.....and i guess they couldn't keep it whilst supporting the change.

 

[fernfurn]

I felt really bad on the first property I bought as they desperately needed money for expansion of their business, but as someone said to me, "you have done them a favour as they now have the money to do what they want" (and the house had been on the market for about 6mths)

 

[Garry Mac]

I totally agree with the majority here...always have a B & P done while the contract is conditional.
Just be careful with B & Ps...ensure you have a good one (which is often not easy). I had a (buyer) client we were working for and the seller had a B & P done prior to listing - everything appeared to be good. When our B & P Inspector (who is very thorough) went in, the roof in their (the seller's) child's bedroom was so damaged by active termites, it was about to collapse.

All the best with your purchase

Cheers
Garry