Burst pipes before completion - Please help!

dollybelle

Hi - looking for advice about a tricky situation...

We were due to move house in December and about 1 hour before completion the owner phoned me to say the house was flooded due to burst pipes. They moved out a week before and turned the heating off, but set the heating timer to go on before we arrived. It is a timber frame modern (15 yrs old) house, and half is affected by water damage which is extensive and includes one ceiling down, saturated carpets and timber floors, soaked plasterboard walls etc. I think the water was running for 2 hours before being noticed and the water was turned off right away and a plumber came the same day to fix the pipe.

The owner's insurance had a loss adjuster round and they will get a quote for repair this week. The owners are building their new house and had their builder (who is their pal) round on moving day, who reckoned it would take 4 weeks to complete repairs. Our independent surveyor thought nearer 8 weeks. Dehumidifiers have been in for 10 days now.

The things I'm wondering about:
Do you think the repair time estimates are accurate?
Would you have any worries about the owners own builder doing the works? (the new house build is of very high quality in a prime locale)
Would you have concerns about proceeding with this house purchase knowing the extent of the water damage? In terms of longterm damage?
What costs of ours are the owners liable for (we are staying with my parents for now, but have paid extra for removals/storage and the surveyors fees, and will likely have more legal fees). Are they liable for these costs even if we rescind at this stage?

Any advice/opinions would be very much appreciated,

Many thanks!

G_M

Did you use a solicitor? If so, talk!

The vendors had a legal obligation to hand over the property on the day of Completion in the same condition as it was at Exchange. To be honest it sounds like they are trying their best to be helpful. but at the end of the day a) they failed to Complete (you haven't Completed have you? No final payment made?) and b) the condition has changed.

Breach of contract. You can a) insist they Complete b) that they re-instate the property's condition, c) they pay the penalties agreed in the Contract (usually £x% of purchase price for every day late) and d) they pay your reasonable costs incurred (eg renting somewhere elese to live etc

I would want all work inspected by my own surveyor to ensure it's up to standard. Add the cost of surveyor to your claim!
Damp takes months to dry out.
Long term - probobly no permenant damage (but ask your surveyor).

If you recind on the purchase you can be sued for breach of contract - you are bound by the contract just as they are! (unless, of course, you reach an agreement)

dollybelle

Thank you!

We do have a solicitor, who has been very helpful, but he's been out of office this past week, so we'll review things again on Wednesday when he back.

Our surveyor (who was chosen as he's on the surveyors board with our mortgage lender) has stated in his report that the damage constitutes 'material damage' which allows us to rescind without penalty on our original bargain through a clause, according to our solicitor. No transaction has taken place at all at this stage.

The sellers have been very helpful - the carpets and oak floors are up and they've saved samples and taken photos etc to ensure that repairs will be done to a good standard. A relative suggested that there is a conflict of interest if their own builder is appointed as he is keen to crack on with their new house build and might be hasty with our repairs - but like you say regular checks by a surveyor would ensure a good job done.

Do you think the dehumidifiers will be on for months before any repairs can begin?

Our dilemma is that the shortest term let around here is 6 months, which would be too long if the estimate is 2 months max - do you think this is realistic?

G_M

Do you think the dehumidifiers will be on for months before any repairs can begin?

Depends how extensive the damp is, and what conditions you're prepared to move into. Repainting/wallpapering damp walls is pointless, but if you're prepared to move in when the basics are dry and repaired, and finish decoration later, then that's not the same as waiting till everything is re-instated. Same with fitted carpets.