Leak in property between exchange & completion
Discussion
Hi all
A friend of ours has just completed on a property and upon completion amd getting the keys, they've discovered a leak and every room except the bathroom is mouldy.
Their solicitor says nothing can be done and to claim on the seller's buildings insurance ( I think it's a flat) but I dont think this is entirely correct.
Surely the property needs to be sold in a similar condition it was sold in and or described as.
Any thoughts people?
A friend of ours has just completed on a property and upon completion amd getting the keys, they've discovered a leak and every room except the bathroom is mouldy.
Their solicitor says nothing can be done and to claim on the seller's buildings insurance ( I think it's a flat) but I dont think this is entirely correct.
Surely the property needs to be sold in a similar condition it was sold in and or described as.
Any thoughts people?
Unfortunately, the exchange of contracts is binding. You are always advised to insure a property from the date of exchange, not completion, for this exact reason.
I expect a referral to the previous owner (or their insurer) for redress is likely to be met with a "not our problem" response, unless they're being particularly generously minded. But someone who allows this to happen post exchange isn't very likely to be so minded.
If the water ingress is originating from another property then it's possible there might be a claim against them, but again I'd expect them to refer you to your own insurance in the first instance.
I expect a referral to the previous owner (or their insurer) for redress is likely to be met with a "not our problem" response, unless they're being particularly generously minded. But someone who allows this to happen post exchange isn't very likely to be so minded.
If the water ingress is originating from another property then it's possible there might be a claim against them, but again I'd expect them to refer you to your own insurance in the first instance.
What changed between the buyer viewing the property and completion?
If the roof was decaying and that manifested as a leak, then the buyer should have had a better survey.
If the seller did something which resulted in the leak, then he might have some liability.
The way the weather was down here in Devon for the first two weeks of September, any empty property could be at risk of going mouldy.
Is it known whether the leak or damage occurred after exchange? If it happened between survey and exchange it would be the seller's problem?
The way some chains go, a lot of time can pass between a buyer viewing a house for the last time and exchange of contracts.
If the roof was decaying and that manifested as a leak, then the buyer should have had a better survey.
If the seller did something which resulted in the leak, then he might have some liability.
The way the weather was down here in Devon for the first two weeks of September, any empty property could be at risk of going mouldy.
Is it known whether the leak or damage occurred after exchange? If it happened between survey and exchange it would be the seller's problem?
The way some chains go, a lot of time can pass between a buyer viewing a house for the last time and exchange of contracts.
I'm a bit confused.
When you purchase you accept the condition as it is at exchange. It's good practice to view immediately prior to exchange to satisfy on condition.
I'm struggling to believe such a massive issue could develop in that gap?
Do they mean this issue has happened since they viewed? And did not have a viewing immediately prior to exchanging?
If it was not like that at exchange. Confirmed by a viewing then it's litigation time.
When you purchase you accept the condition as it is at exchange. It's good practice to view immediately prior to exchange to satisfy on condition.
I'm struggling to believe such a massive issue could develop in that gap?
Do they mean this issue has happened since they viewed? And did not have a viewing immediately prior to exchanging?
If it was not like that at exchange. Confirmed by a viewing then it's litigation time.
LuckyThirteen said:
I'm a bit confused.
When you purchase you accept the condition as it is at exchange. It's good practice to view immediately prior to exchange to satisfy on condition.
I'm struggling to believe such a massive issue could develop in that gap?
Do they mean this issue has happened since they viewed? And did not have a viewing immediately prior to exchanging?
If it was not like that at exchange. Confirmed by a viewing then it's litigation time.
Eh?When you purchase you accept the condition as it is at exchange. It's good practice to view immediately prior to exchange to satisfy on condition.
I'm struggling to believe such a massive issue could develop in that gap?
Do they mean this issue has happened since they viewed? And did not have a viewing immediately prior to exchanging?
If it was not like that at exchange. Confirmed by a viewing then it's litigation time.
Once contracts are exchanged, the buyer is contractually obligated to purchase the property, even if it burns down or is severely damaged before completion. This means that the buyer is responsible for the property from the moment of exchange, even though they do not yet own it.
This is why it is essential to have buildings insurance in place from the date of exchange, as it will cover any damage or loss that occurs during this period.
Unless there is negligence.
2 sMoKiN bArReLs said:
Eh?
Once contracts are exchanged, the buyer is contractually obligated to purchase the property, even if it burns down or is severely damaged before completion. This means that the buyer is responsible for the property from the moment of exchange, even though they do not yet own it.
This is why it is essential to have buildings insurance in place from the date of exchange, as it will cover any damage or loss that occurs during this period.
Unless there is negligence.
It won't cover decay due to a pre-existing fault though.Once contracts are exchanged, the buyer is contractually obligated to purchase the property, even if it burns down or is severely damaged before completion. This means that the buyer is responsible for the property from the moment of exchange, even though they do not yet own it.
This is why it is essential to have buildings insurance in place from the date of exchange, as it will cover any damage or loss that occurs during this period.
Unless there is negligence.
OutInTheShed said:
2 sMoKiN bArReLs said:
Eh?
Once contracts are exchanged, the buyer is contractually obligated to purchase the property, even if it burns down or is severely damaged before completion. This means that the buyer is responsible for the property from the moment of exchange, even though they do not yet own it.
This is why it is essential to have buildings insurance in place from the date of exchange, as it will cover any damage or loss that occurs during this period.
Unless there is negligence.
It won't cover decay due to a pre-existing fault though.Once contracts are exchanged, the buyer is contractually obligated to purchase the property, even if it burns down or is severely damaged before completion. This means that the buyer is responsible for the property from the moment of exchange, even though they do not yet own it.
This is why it is essential to have buildings insurance in place from the date of exchange, as it will cover any damage or loss that occurs during this period.
Unless there is negligence.
So, in summary then OP:
Your friend was responsible for the property from exchange.
Unless there was a pre existing problem or the vendor (or somebody else) was negligent your friend should claim from their house insurance which should have been taken out at exchange of contracts.
Your friend was responsible for the property from exchange.
Unless there was a pre existing problem or the vendor (or somebody else) was negligent your friend should claim from their house insurance which should have been taken out at exchange of contracts.
Edited by 2 sMoKiN bArReLs on Saturday 27th September 15:16
LuckyThirteen said:
OutInTheShed said:
It won't cover decay due to a pre-existing fault though.
Indeed. And @2smokin it's either existing or negligence.The reason I'm confused is 'mould everywhere'. That takes time.
I don't think we know the time elapsed between exchange & completion.
Between exchange and completion on our last house our neighbour had a bbq right against our fence. We were out, so missed the ensuing fire that needed five fire engines and closed the nearby road off. Coincidentally, our buyer was a Police officer who attended the scene.
A neighbour called us before we got home, so we were somewhat prepared. Luckily the house was untouched, but the fence to the side and rear of the garden were gone, as was the shed full of various electrical tools. The grass was completely black, as was the patio.
Sure enough, 9am the following day, the estate agent was on the phone asking when the damage would be rectified and saying the seller would be holding back £1k.
Our insurance didn't want to know and neither did our neighbours, but he was very good about it and had a contractor in the next day to replace the fence and shed. He even replaced all the electrical items that had been in the shed. Hopefully our next move won't be quite as eventful !
A neighbour called us before we got home, so we were somewhat prepared. Luckily the house was untouched, but the fence to the side and rear of the garden were gone, as was the shed full of various electrical tools. The grass was completely black, as was the patio.
Sure enough, 9am the following day, the estate agent was on the phone asking when the damage would be rectified and saying the seller would be holding back £1k.
Our insurance didn't want to know and neither did our neighbours, but he was very good about it and had a contractor in the next day to replace the fence and shed. He even replaced all the electrical items that had been in the shed. Hopefully our next move won't be quite as eventful !
Red9zero said:
Mark V GTD said:
You re insurers didn t want to know as soon as they were informed an exchange if contracts had already taken place?
Tbf we didn't really pursue it due to time constraints. Short answer was no from both companies, and our neighbour offered to sort it straight away. The strictly correct response to your buyers would be “contact your insurers but here’s my neighbours contact details if you want to discuss it with him” and “we expect full remittance upon completion as per the contract”.
I’d also give the agent (who is supposed to act in your interests) a lesson in conveyancing.
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