Real estate is different

[ghotib]

It's a long time since I last sold a PPOR, and things have changed. Here's one change that even our real estate agent hadn't heard of before. I don't think it's a problem, and we're asking our solicitor for advice anyway, but I just wondered what people here think.

Agent has a request from the purchaser to obtain a statement from us in a form that is part of their pest inspection company's disclaimer clause. It looks like this:

(a) Obtain a statement from the owner as to:
i. any Timber Pest activity or damage;
ii. timber repairs or other repairs

iii. alterations or other problems to the property known to them;

iv. any other work carried out to the property including Timber Pest treatments; and

v. obtain copies of any paperwork insured and the details of all work carried out.

That feels to me like the company trying to duck any responsibility for its own inspection. I don't like it from my side, but I can't understand why the purchaser would go along with it. What are they paying the inspector for???

What do you worldly wise characters think?

Ghoti

 

[doctorj]

It probably is the company doing what it can to reduce it's exposure to downside risk, but as the purchaser, I say, why the hell not. It'd give me another person to sue to recover losses should the inspection miss anything. A material misrepresentation of that nature would make for quite an easy case under established contract law precedents...

 

[Julia]

It's a long time since I last sold a PPOR, and things have changed. Here's one change that even our real estate agent hadn't heard of before. I don't think it's a problem, and we're asking our solicitor for advice anyway, but I just wondered what people here think.

Agent has a request from the purchaser to obtain a statement from us in a form that is part of their pest inspection company's disclaimer clause. It looks like this:

That feels to me like the company trying to duck any responsibility for its own inspection. I don't like it from my side, but I can't understand why the purchaser would go along with it. What are they paying the inspector for???

What do you worldly wise characters think?

Ghoti

Ghoti, I've heard of some cases where purchasers have had an OK pest inspection but within a month or so of moving in, have discovered a termite infestation. This doesn't necessarily mean the inspector wasn't diligent in the inspection: the little ****** can eat a foot of window sill in a few days.

They might just be looking for additional reassurance.

Why don't you like it?

 

[ghotib]

hi Julia,

I don't like it because I don't see that it gets the buyer anything. Seems to me all this gets them is an extra opportunity for the pest company to try and duck responsibility if they miss something. It doesn't really affect us; we'll tell them the story as we know it and that's the end of our responsibility. But if our word is so significant, why are the buyers paying the inspector?

And anyway, I automatically distrust a document that doesn't make sense. What the heck does "obtain copies of any paperwork insured" mean?

Pest and building inspectors came yesterday. Didn't tell us they'd found anything wrong, but then they wouldn't would they.

Cheers,

Ghoti

 

[Julia]

hi Julia,

I don't like it because I don't see that it gets the buyer anything. Seems to me all this gets them is an extra opportunity for the pest company to try and duck responsibility if they miss something. It doesn't really affect us; we'll tell them the story as we know it and that's the end of our responsibility. But if our word is so significant, why are the buyers paying the inspector?

And anyway, I automatically distrust a document that doesn't make sense. What the heck does "obtain copies of any paperwork insured" mean?

I don't see where the 'insured' fits in but I'd guess the 'obtain copies of any paperwork' would relate to a previous inspection result and any treatment applied. I recently had termite damage and had detailed report provided, quote for termite barrier protection, then when this was completed, paperwork detailing the guarantee . This is probably what they are referring to. Maybe just ask them?

 

[MrBurns]

Just say NO . let them do their own investigations.

 

[Julia]

Just say NO . let them do their own investigations.

Why be obstructive? If I were selling I'd be quite happy to make available recent inspection details. Would almost consider it a selling point if the buyer was enthusiastic and it would help close the deal.
On the other hand, if the property hasn't been inspected for a few years, then that's quite different.

 

[MrBurns]

Why be obstructive? If I were selling I'd be quite happy to make available recent inspection details. Would almost consider it a selling point if the buyer was enthusiastic and it would help close the deal.
On the other hand, if the property hasn't been inspected for a few years, then that's quite different.

I was assuming it hadn't been inspected like most home they never are unless there's a reason to.

You would only agree to something like that if the sale couldnt be replaced fairly easily, and in this market you would assume it could.

 

[ghotib]

At least this discussion shows that it's not a standard request.

I think "insured" is probably a typo for "issued". I also think that if the documentation is that poor the firm might have other problems.

Mr Burns hit it: we haven't had an inspection for years. But then, that's why the buyer is getting one, and presumably they are getting exactly the same information as we would.

I've sent them a statement through the agent that just tells the story as we know it and as their inspection report should tell it, including the part about the bit of floor he can't get under.

"Why be obstructive" is one side of all this, but the other side is "why be awkward" when there's nothing to gain. They've sold their home, they both have jobs and they have a small child. We were off the market and we'll be going into a short-term rental while we look for something to buy. They're trying to bring settlement forward; I understand their reason, but a slightly longer than standard settlement term was part of the reason for accepting the price. If I get sufficiently irritated I might just back out. It's not likely, but it would hurt them much more than it would me.

Ghoti (Feeling Stroppy)

 

[Kez180]

caveat emptor

 

[Krusty the Klown]

The original quote sounds like "lawyer speak", it is most probably coming from the buyer's solicitor or conveyancer more than the buyer.

Lawyers always try to close every possible loophole.

 

[awg]

buyers and sellers, or their solicitors can attempt to put any clause in the contract.

In your case, as you have the answers at hand, I would just provide the requested info.

If the buyer wants to back out cause you haven't had regular pest inspections, then thats up to them, they could back out if u dont provide the info.

I have had many weird clauses in contracts, both by me and the other side, and had sales fall over because of them, thats why they were inserted.

Yr solicitor is the correct person to advise you in this matter, if you cant make up yr own mind.

a bit annoying though