Question re: builders report

[rebeccasbrain]

A while ago, I got a bad builders report back on a property (best money ever spent!) and have discovered the house is a 'leaky building' (though not monolithic clad) and has 100k plus of structural damage including a rotten foundation.

I'm pretty new to buying property (this was going to be my first home) but is there any law that means these people need to disclose this information to other potential buyers? It's cost me a lot of money to get to this point, so I'm curious!

[Leftette]

Sorry, I can't answer with certainty, but out of interest, what is the cladding? I know any house will rot if water gets in over a long period of time, but am interested to know if in this case it's a roof leak, or cladding failure, plus how it's come to be that the foundations are bad? Is it timber piles? Or timber on concrete posts?

[spaceman]

Yes there is....if they know about problems they need to disclose them.......proof is another matter.....how do you prove somebody knew something in advance when they claim ignorance

Cheers
Spaceman

[rebeccasbrain]

I'm chalking it up to experience myself... but I do find it morally objectionable they will try the same on someone else - and someone who might be silly enough not to get a builders report.

That's why I wondered if they are now legally required to disclose since I will be pulling out due to the builders report which I will be sharing with them.

Not sure of the structure yet, I'm waiting the formal report and I'll let you know Leftette.

[Wayne]

Yes there is....if they know about problems they need to disclose them.......proof is another matter.....how do you prove somebody knew something in advance when they claim ignorance

If you were to share the building report results with them - maybe formally (ie with a letter explaining why you pulled out) - then they would know.

[Leftette]

What's the cladding?

[Maccachic]

This is worth a read: http://www.hobec.co.nz/news-resource...d-vendors.aspx

Do ask the question – is this or has it been a leaky home? Why? Vendors do not have to tell you what is wrong with the property. But if asked, Vendors are potentially liable for misrepresentation if they lie. Note that some Vendors may, quite innocently, tell you it is not a leaky home when it is (and in some cases can still be liable to you). However, even though you should ask the question, you should also carry out your own investigations.

[Wayne]

great article

[rebeccasbrain]

Ooohh cheers for that. Can I share the builders report with anyone I like?

[PTILoveYou]

Probably send an email to REAA to find out from the legal perspective, but my guess is the vendor will try to sell it as it is, and not tell the truth if they don't have to..

[PTILoveYou]

Ooohh cheers for that. Can I share the builders report with anyone I like?

You paid for it, so you should be able to share it however you like.

[Wayne]

Ooohh cheers for that. Can I share the builders report with anyone I like?

why not, you paid for it.

[John the builder]

dont ask dont tell is the vendors position

so did you ask?

my understanding is that if agent knew he had to tell but often the vendor and the owner simply dont know because they didnt look or their understanding likely was that the condition was obvious.

Rotting piles suggest an older pre 1950's house??


often trying to sell is a reality check for vendors as well??

I assume your builders report was accurate did you consider a second opinion?

what do you expect brand new?

caveat emptor and you get what you pay for applies??

[Maccachic]

Ooohh cheers for that. Can I share the builders report with anyone I like?

Would depend on the exclusions on the report most are for the eyes of the purchaser only, some have the option to show to vendor / RE to get out of a sale, you really need to check before hand.

However the writer of the report would normally limit liability to the person who commissioned the report.

[rebeccasbrain]

No John, I don't expect 'brand new', but I equally don't expect 100k worth of rot.
And I am well aware that buyers must beware - which is why I did all my due diligence and pulled out of the sale when I had the information needed.

My question was now that the vendor knows what we discovered are they bound to tell others. That's all.

I'm simply curious, not complaining.

Thanks to everyone else for the links and info. Interesting stuff! I've learned a lot. :-)