Do estate agents have to disclose structural problems?

[zetec]

Following on from this thread,

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

The buyers have pulled out and my Mum now has a certificate from the original structural engineer saying what works were done, who by and that no more movement was detected over a period of time.

Mum spoke to the Estate Agent on Monday to ask if there had been any interest, he said yes there had but as soon as he mentioned structural problems, the prospective buyers aren't interested. The Estate Agent told my Mum he had to do this by law? Is this right? For the last buyers nothing was mentioned and it was only when Mum made a note of it in the sellers pack.

[DS3R]

If they know, yes, as it may have an impsct on lending against it, so a buyer has the reasonable right to know before committing to a lender who may later reject their mortgage application post survey.

[zetec]

DS3R said:

If they know, yes, as it may have an impsct on lending against it, so a buyer has the reasonable right to know before committing to a lender who may later reject their mortgage application post survey.

Thank you.

So to move EA's could fix that problem and at least get people to SEE the house?

The house is being marketed at around £20-30k less than what it should be as it has been a rental property, so any prospective buyer is getting a bargain.

I agree that a lender will have a final say, however, my Mum is willing to pay for a full structural survey to be done on it, will this make a difference?

[Renovation]

But surely now there is NO structural problem.

I think it sensible to mention that it has had previous works but I'd do so after they have seen it - if agents won't agree to that - move agent

[zetec]

Renovation said:

But surely now there is NO structural problem.

Exactly, all this happened in 1988, works were done and my Mum has the paperwork that documents it well.

I agree that buying a house that has had structural problems might not appeal to some, it's a bit like buying a car that has been in a crash. I wouldn't expect a car dealers first pitch on that car to be that it had been in an accident though.

I think it is time to move agents.

[TA14]

zetec said:

So to move EA's could fix that problem and at least get people to SEE the house?

...

I agree that a lender will have a final say, however, my Mum is willing to pay for a full structural survey to be done on it, will this make a difference?

Q1 possibly but think whether it is being dishonest not to disclose what you know.
Q2 no. A full SS is done by a surveyor. You want a structural survey done by a Structural Engineer, as per your other thread.

zetec said:

all this happened in 1988, works were done and my Mum has the paperwork that documents it well.

I agree that buying a house that has had structural problems might not appeal to some, it's a bit like buying a car that has been in a crash. I wouldn't expect a car dealers first pitch on that car to be that it had been in an accident though.

Yes, you have documents to show that work was done 26 years ago but you're trying to sell it now not then.
It is a bit like buying a car - look how many threads on here complain about people who don't mention a cat D in the ad.

I know that you're in a tough position and I think that a SE report by the seller will help in this situation (even though the eventual buyer will probably want their own as well - I would) and sadly I fear you may have to drop the price further to attract people.

[rfisher]

EA I was discussing a house with said they are under no legal obligation to inform buyers about known structural defects, nor are the sellers.

It is up to the buyer to ensure that they arrange the relevant surveys when buying a house.

That's for England. I expect that the Scottish system is different.

[TA14]

rfisher said:

EA I was discussing a house with said they are under no legal obligation to inform buyers about known structural defects, nor are the sellers.

AIUI you need to be careful with statements like that in that EAs and sellers are under the obligation to disclose that information if asked.

[rfisher]

TA14 said:

AIUI you need to be careful with statements like that in that EAs and sellers are under the obligation to disclose that information if asked.

That's a slightly different point.

How many buyers specifically ask the EA or seller if they are aware of any structural defects when buying a house?

[jamescodriver]

The law has changed recently and we now have to disclose material things that may make people not wish to proceed.

[surveyor]

jamescodriver said:

The law has changed recently and we now have to disclose material things that may make people not wish to proceed.

Legislation?

Standard enquiries will ask and I can't see how a seller can dodge the question. I always make frequent use of Buyer to rely on own enquires, but it ain't going to work on the structural repair question.

I too don't think it's good marketing, and provided that a potential buyer is aware when making an offer would be surprised to find any breach of legislation, although dafter things have happened.

[Spare tyre]

just thinking out of the box here...

if you were to knock the house down and replace it with a similar one or some smaller ones, where would the op stand then?

[zetec]

Thanks for all the replies.

My brother called the EA today as a buyer to see how it is being marketed, he was told, "Steer clear of that one, it's had structural problems, you will never get a mortgage or insurance".

We now know what we need to do.

[mondeoman]

Nice...

[TA14]

zetec said:

My brother called the EA today ...

Sorry to hear the outcome of that call. I wonder whether you need to tape something like that in case the EA wants a slice of the fee in the minimum time period, if applicable. Just a thought.

[Spare tyre]

Seems odd
Why would they offer to take it on if they were not trying to sell it

Will they find no buyers then one will turn up out of the blue offering a low price

[Mobile Chicane]

I presume that buildings insurance cover is still being provided by the insurance company who coughed up for the remedial work back in 1988.

If so, 'find' a crack somewhere, and call the insurance company, explaining you're concerned that the original problem may have recurred. They'll send their Structural Engineer round, who will issue a detailed report. Obviously this will state that all is well.

Then, send your free survey to the newly appointed Estate Agent.

[zetec]

Spare tyre said:

Seems odd
Why would they offer to take it on if they were not trying to sell it

Will they find no buyers then one will turn up out of the blue offering a low price

The EA has managed the property for the last 20 years, the EA is keen for my Mum to rent it out again and use the rental income to rent elsewhere (Mum is currently living in a house provided by her job). The EA will earn a lot more money through letting than selling.

[scenario8]

One is obliged to disclose any known information that could materially affect a potential purchase.

I'd like to see a transcript of that phonecall mentioned above as it would be perverse for an agent to speak like that. I note the OP's reference to the agent wanting to undermine a sale in lieu of a renewed rental agreement, however.

As mentioned previously across a number of threads relating to etsate agency; there appears to be some sort of alternative universe Wild West out there! I only ever seem to come across it on the internet.

[zetec]

Mobile Chicane said:

I presume that buildings insurance cover is still being provided by the insurance company who coughed up for the remedial work back in 1988.

If so, 'find' a crack somewhere, and call the insurance company, explaining you're concerned that the original problem may have recurred. They'll send their Structural Engineer round, who will issue a detailed report. Obviously this will state that all is well.

Then, send your free survey to the newly appointed Estate Agent.

Thank you for the good advice.

I'm not sure if the cover is still being provided by the original insurance company, my late father dealt with it all at the time, it is worth mentioning this to my Mum though, thank you.