Buying property offer is conditional......

[Rayandstew]

Have a bit of a dilemma, hoping someone can give me some peace of mind etc.
We have previously put a offer in on this property subject to Code of Compliance (COC). On the day it goes unconditional, vendor pulls out as there is abit of work to do to get the code.

The vendor comes back and offers it to us, abit more money, ok - we will pay, property still worth it. We are now worried that even though we sign a conditional contract on getting the COC, it wont definfelty be ours, until it goes unconditional and she could pull out at any time. Is there a legal way to nail this contract so it is definelty ours? We will pay deposit to lawyers no problem, but she could still pull out!!!

Settlement wont be until End of march, when the COC has been issued or sooner. That is still 3 months away. She assures us that we have the house, and i do trust her, she is a lovely lady, but life can be complicated!!

Thanks everyone!

[ScottSI]

Interesting one, I would word it the other way and make it conditional on you accepting the COC by some date at you discretion. No deposit to paid until this condition is met. She may not supply the COC and you may be forced to pull out if you wish too but you don't have too, your choice. Discuss with your lawyer anyway to get the correct wording (not the agent - they work for the vendor).

[Rayandstew]

Sorry, forgot to put in, it is a private sale!

[Glizzle]

Do you know what work needs to be done ? If not ill request to see what work needs doing so you can better access the situation that they are in.

[Rosco]

Talk to your lawyer.

My understanding is that the vendor couldn't pull out of the conditional contract in the first place. Unless they had a clause to allow them to pull out, which is unusual. Unless you cancelled the contract, they normally couldn't pull out! Maybe worth checking this, as maybe you have paid extra when you don't have to?

Normally the purchaser would add a clause, that they can get out if the COC takes over a certain period of time, but solely up to the purchasers descretion and doesn't mean contract automatically falls over. But again in a normal contract, I didn't think the vendor could pull out. But they could play delaying games!

Ross

Ross

[Rayandstew]

hi - thanks for reply. Yes the property is in excellent condition, its just that jennian homes forgot to get the COC and then it lapsed. but now you can get it again. She is replacing the panels which are monolithic plaster with linear so its not a biggie but still needs to be done in order to get COC.

[speights boy]

Whose lawyer prepared the contract ?

[Rayandstew]

We filled in all bits and pieces and my lawyer just added to it etc. BUt nothing was said about vendor pulling out of deal etc. Now we arfe nervous that we wont get it even though, she swears it is ours, she may decided again, if she gets a higher offer

[Rayandstew]

Talk to your lawyer.

My understanding is that the vendor couldn't pull out of the conditional contract in the first place. Unless they had a clause to allow them to pull out, which is unusual. Unless you cancelled the contract, they normally couldn't pull out! Maybe worth checking this, as maybe you have paid extra when you don't have to?

Normally the purchaser would add a clause, that they can get out if the COC takes over a certain period of time, but solely up to the purchasers descretion and doesn't mean contract automatically falls over. But again in a normal contract, I didn't think the vendor could pull out. But they could play delaying games!


Ross

Are u sure? Even before it going unconditional? She pulled out cos she wasnt going to the the COC like we first thought, without doing some additional work to the property.

[gavinc]

hi - thanks for reply. Yes the property is in excellent condition, its just that jennian homes forgot to get the COC and then it lapsed. but now you can get it again. She is replacing the panels which are monolithic plaster with linear so its not a biggie but still needs to be done in order to get COC.

If Jennian homes "forgot" to get the COC and then some years later someone applies for a COC why does the monolithic plaster need to be replaced with weather board? Have the regulations changed in the meantime?
Are you sure it's not a "biggie" are you saying the property is going to be reclad? in my vie that is a biggie and will cost lots

[elguapo]

If Jennian homes "forgot" to get the COC and then some years later someone applies for a COC why does the monolithic plaster need to be replaced with weather board? Have the regulations changed in the meantime?
Are you sure it's not a "biggie" are you saying the property is going to be reclad? in my vie that is a biggie and will cost lots

Indeed. How long ago was this built? One of NZ's biggest house builders doesn't just 'forget' a COC when it's almost always the document that triggers take over and payment. The fact there is now work to do to get compliance should have alarm bells going off for you.

[Rayandstew]

Yeas I know what you mean. What actually happened, was when they originally made it, they just plain forgot! So when the original owners went to sell, they contacted Jennian homes, they straight away sent out someone who went over the whole home and submitted a submission to council and council accepted the property as being sound and no problems. However, since then, we would like the COC before purchase, there are 6 panels made on monolithic plaster around the home, rest of it is brick. So it is only the 6 panels that need fixing, and yes it is still a lot of money to fix but its only 5% of the house. Monolithic plaster only lasts for about 15 years apparently, and councils are quite strict on it as it was built when the leaky home syndrome started because of all the monolithic plaster homes around.

[John the builder]

we need to get our terms correct folks what you are talking about is a CCC? (a CoC is a certificate of Compliance under the RMA that certifies building use is approved and what for)).

CCC's dont lapse??
You may need to consider a determination from the MBIE which helps get the CCC. Check the Web site http://www.dbh.govt.nz/determination...determinations) As a seller you are best to try for the CCC but as a buyer you still end up with a Monolithic clad building.

[Rosco]

Are u sure? Even before it going unconditional? She pulled out cos she wasnt going to the the COC like we first thought, without doing some additional work to the property.

I'm not a lawyer and it also depends on the clauses in the Contract. But if you buy a house conditional to a COC. It means the buyer and seller have agreed to all terms, and that once the COC is obtained the vendor would sell to the buyer for $XXXXXXX. Unless there is a specific out clause for either party, then the buyer and seller are bound to this contract.

I think under common law, after so many months or years, then both parties can pull out if COC wasn't obtained within this timeframe.

This why you need to be very careful before signing any contract and fully understand. From what you are saying, if the property was sold subject to the condition of the vendor obtaining COC at their cost and there is no other funny clauses, then you had a binding agreement.

Is there a clause such as, the vendor has the right to take any cash offer that is better while this agreement is unconditional?
Or conditional on the cost of obtaining the COC being agreeable to the vendor, or under $XXXX or something like that?

Ross

[Rayandstew]

They found a small leak around the window sill. So no code given. In order to get code all the plaster needs to be replaced. And at the moment, linear weather board will give it a even more modern look. Apparently, plaster has a 15 year guarantee only?? Yes the cost will be in the thousands, but it is only 5% of house as the rest is made of brick.