We have done it now ...

We have walked into the worst deal of our life!! All I can do is try to get the powers that be to get us out of this horrible mess ...

Basically we have a contract on a house to settle Monday coming (24th November) this house was in building stage and we put the contract on about 1/2 way through construction.

At the point of putting the contract on the house, we didn't get to see much as the house was still being built, and there was no point getting a building inspector out at that point as there really was nothing to inspect (and it passed all the council regulations ... at that point)

Anyhow, the property is now in the last few days before settlement, it has only just been finished enough to get a building inspector to come through and give his verdict ... It breaches over 170 building codes of the Australian Standard :eek: that he can see alone, and in his 15 + years of working as a building inspector has never seen a house this bad. So many bad things to mention it is not funny!! The list goes on, but the worst is that the house is out by 30mm in the brick, the roof is bowing, window frames are breaking, doors are not sliding, window sills are on a major lean, the kitchen bench is out of whack by 110mm (yes 110mm) the stairs are timber they have severe damage, there is over cutting and under cutting of the plaster, the wiring in the roof goes against Australian Standards and is placed over other tubes in the roof that it shouldn't be near (particularly the heater vents) and this is only just getting started.

Any how, the property apparently has been issued with a certificate of occupancy, and our building inspector is protesting how this could of been issued.

As the vendors solicitor has only replied today (for the first time is 42 days of a 45 day settlement) at 4:30pm (mind you) the building inspector called the builder direct. This so called company hides behind telephones and the owner of the company (a female) has never been to the house, nor has she any interest either, received a phone call from our wonderful building inspector (who has been the best - need a reference, just ask!!) called and started asking her about why the problems are so bad etc etc and her rebutle, 'oh what makes you think you are qualified, who are you? he promptly replied, I am a VCAT registered building inspector. After that she hung the phone up on him, called the REA and asked where he was from etc etc. I received a call and basically said, well if she didn't hang up, then she would of got his full details.

Anyway, after writing a 6 hour + long report, that took 3+ hours to get all the information he wanted (although he said, it should be condemned immediately, but he will fill it out to make sure we get our $$ worth) after informing our surveyor of the problems, she flat out didn't believe what we were going through, until she was called by the building inspector. They correllated a letter of discontinuement of the contract and sent it through to the vendor and their solicitor the builder called our surveyor and said that they will have their own building inspector out first thing on Monday morning. We (as in me and my partner) are not concerned in this at all, simply because they too will find the same problems and will report on them. If they fail to, then our building inspector will have the building commissioner out on site immediately on Monday to shut that site down.

Now, all of this sounds ok, if you have 'SUBJECT TO BUILDING REPORT' however our REA wrote the contract and despite we asking him to put this in he convinced us not to bother as 'IT WAS A NEW HOUSE' :eek: WTF were we thinking at this point. (As stupid as it sounds my partner really liked the house, the area etc and he wanted to sign the house up as this was our dream home) and this vital point is missing. So basically we are screwed...

Last conversation between the builder and our building inspector went a long the lines of 'if the don't want the house thats good it doesn't suit us to sell the house to them (as in us)' so by the sounds of it, with a little pressure with a visit from the building commissioner will shut them up very quickly and will get us our money back from the deposit and cancel us from this contract. I don't want to walk away from the contract, I want to run, far far away!! Bargaining is not an option, the only option said by the building inspector is to pull the whole house down and start again. What makes this more worrying is that this building inspector has a lot to loose to start slandering the builder in front of other and especially to the owner of the company as if he was found to be wrong he could get sued big time over everything he has said. So for him to say this is a big statement. I guess no one will ever understand the severity unless they were experiencing it first hand and had the report in your hand.

The final report will be in my inbox by Monday, which is going to be a sad day for us! Going thru this has put us under un-needed financial strain! We purchased all of our furniture and it should be delivered on Tuesday morning, so Monday morning is going to be hell!!! :mad:

I guess I am not asking a question, more getting a vent off my chest!!
 
wow ... poor you

Not sure but off the top of my head if you inform the bank of all this with the building report, my guess is they will refuse to finance and not settle, they won't want to be tied up with a disaster as collateral for the loan.
 
We have stopped the funds, however as it is well after the 14 day period the contract is what is considered unconditional. Our only way out is having the building condemned under State Building Codes and exiting that way.
 
People do walk away from unconditional contacts! Especially if they have good reason. What are they going to do ... Sue you?

That would be fun in court when the real story comes out.
Get another inspection report to back up the first.
 
There is NO WAY I would be willingly settling on Monday!

I would be getting legal advice first thing and at the very least organising an extension on the contract to get better advice.
 
Come Monday if the builder doesn't voluntarlily pull out of the contract we will be delaying the settlement and we will be seeking further legal advice.

I would dare say Monday they will delay settlement as they await their builders report

Our building inspector is extremely cluey on who to contact to get the house condemned (or atleast get us out of this contract) so I will utilize his services to the full extent.
 
Get another inspection report to back up the first.

I thought about doing this, however the building inspector has said that there is no need to rush this, the house will always be on a lean well over the building standards and the problems are that major they will not be fixed overnight and if need be VCAT or Building commission will be called to the site which will do more then just ruffle some feathers.

In addition the builder themselves is organizing a building inspection report through another company. Should it come back not as suspected (as if it wouldn't - and if it does, that guy will be loosing his permit to ever conduct another inspection again) we will seek a 3rd independant report.

Apparently (I have to read further into this) that if we are not satisfied with the building or structure we put in the contract that they have 14 days to fix the house or we exit the contract. Now they are not going to be able to fix all the problems, the only way is to knock the house down and start again, and that will take months, not days! This is another way out of the contract.

I think the builder will pull out of the contract, drop the prices and wait until someone naive will come and buy without a building inspector or wait until an investor will snap it up and tenant it out ... either way, I feel very bad for anyone who ever has to live in those houses. It is such a shame, surrounding houses although on the smaller side are very well built, with 20+ in the immediate area being very nice houses that make a beautiful area. Shame on you builder, shame on you!!

As soon as I have photographs off the report I will upload and share just to confirm the severity of the problems, until then, thanks for allowing me to vent!!
 
Hi Wildfire

You must be going through a lot of anguish over this

My memory is a bit scratchy, but in the rush to finish contracts before the introduction of the GST, many builders took on too much work, there was a shortage of tradies due to building for the Sydney Olympics, and I recall one Melbourne builder being ordered to demolish 30+ houses due to poor workmanship.

Sadly, there is plenty of precedent for your situation, but there is precedent and that's what Builders Warranty Insurance is for: To make sure that you, the customer, gets a quality product in accordance with the BCA.

Never mind abut the furniture, even if you have to pay storage costs don't let yourselves be coerced into accepting the house. And get everybody who will listen - Building Commission, Consumer Affairs - involved NOW rather than later.

Best wishes
Kristine
 
Sorry to hear you're going through this, Wildfire, but I can only agree that you should by no means settle.

Just as a matter of tactics, I'd try and give the developer the opportunity to just release you from the contract before you talk about getting the house condemned etc, if getting your deposit back is important. If the developer thinks you just want to be released and they can then on-sell to somebody else, they are likely to just let you walk and have your deposit back.

But once you've indicated that you're "going for the jugular" and trying to have the building condemned, the developer has nothing to lose and is less likely to voluntarily release you. You may win eventually anyway, but it'll be faster if they think you'll go away when you get your deposit back.

Of course, once you get your deposit back, you should still try and notify the authorities of the shoddy workmanship, as a matter of principle.

Just one thing I'd ask you to bear in mind: the developer may truly be an innocent party. The developer could be like any one of us on Somersoft, who's a small businessperson who's contracted the builder in good faith, and is as horrified as you are at the standard of work, and petrified at the thought that they may lose everything. I think I'd initially be making sounds to the vendor like "I know it's not your fault, but the builder has really done the wrong thing by both of us, and there's no way that I can settle on this property. I feel badly for you, because he's built you a property that I don't think is saleable, and I wish you luck in obtaining satisfaction from the builder, but I need to be released from this contract and move on. I'm as disappointed as you are, because we were genuinely very excited about moving into this home."

It's not only more reasonable - because I bet that this is the scenario, that the builder's totally screwed the unwitting developer - but also predisposes the vendor to want to help you. If you're attacking the vendor and implying that she has knowingly tried to sell you an inferior product, she will naturally feel defensive. People are far less likely to want to help you when they're feeling defensive.

Good luck getting past this hiccup in life. I'm sure you'll get out of the contract, but it is unnecessary stress, and is a disappointment.

Do you have somewhere else to live?
 
Thanks for your replies, definitely helps me think clearly!!!

Regarding living somewhere, at this point in time, we have somewhere to stay.

I see where your coming from of not going to the jugular, however I do hold this lady completely responsible. She seems to have excuses for everything. Cracked bricks and she said but they are the same on the display home. For everything she has an excuse.

Gah, 10am and been on the phone already since opening of business.

I can't wait for this inspection replort, I am going to ensure that every one associated with this house sees it.

What makes me laugh (not in a happy way either) is that the REA this morning goes, well we all know K_____A sits behind a desk and gets people out to do her work

I am really disappointed and let down! My partner and I are looking for new houses (there is no way we are getting that house under any circumstance) and we are just so over this all. we can only just find the energy.
 
Hopefully you get your deposit back 100%. Sounds like this building is totally unliveable and about to collapse into a sorry heap any minute!
 
Spoke to the builder for 45 minutes today and she has sent the deposit back to her solicitor to return to the real estate.

The Builder is happy to release us from this house, however she now has another fight on her hands (which will begin once we get our deposit back) is that a) she slandered the building inspector accusing him of not being qualified and a licensed builder (she really needs to update herself on the legislation) and b) we are still going to follow this up to ensure that we follow this up with the correct building departments to ensure that this builder never does anything like this again. The Real Estate Agent is expecting his commission, however from our understanding this is not the case according to REIV

Monday is just around the corner, as soon as the money is back in the account, the contract is cancelled we will purchasing elsewhere.
 
The Real Estate Agent is expecting his commission, however from our understanding this is not the case according to REIV
I'm glad you're being released, and the commission is not your problem, but I'd be interested to hear more on this point. My understanding is that normally the agent becomes entitled to their commission as soon as there's an unconditional contract, whether it ultimately settles or not. So I'm curious why the REIV think otherwise...
 
I would have to find out definites from the REA and REIV on Monday morning. At this stage on the commission there has been no definites.

Even saying, to loose a couple of thousand is a little to loose just to get out of this.

Still having a chuckle, whilst telling the builder on how bad the house is, she still kept saying if nothing else works out come back and you can buy the house ,,, chuckles ....
 
I would have to find out definites from the REA and REIV on Monday morning. At this stage on the commission there has been no definites.
Wildfire, the SELLER pays the commission - perhaps this is why the REIV have told you not to worry about it, because as the buyer it has no effect on you. But the seller would normally still be up for commission in this situation.
 
wildfire,

sounds like a big mess but a good learning curve, and at the end of the day you may be ok if i have followed along alright?

May i ask for the details of the building inspector? sounds like a good bloke and I may need one soon.

Cheers

Ben
 
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