Property damaged before completion of property

TranceNRG

UPDATE - And it's not good news

I rang the Insurance broker and they said water damage is not covered as the property had been vacant for more than 30 days.

I've emailed my solicitor and waiting to hear her thoughts.

Are you guys saying the seller is not liable for anything?

TranceNRG

Thrugelmir wrote: »

Who else would be interested in the condition of the property?

Lets say I inspected the property at exchange (I wasn't advised by my solicitor to do this) and it was in the same condition that it was in before but damage could have easily happened between exchange and completion. So then what? Are you supposed to claim it on insurance?

lincroft1710

TranceNRG wrote: »

So then what? Are you supposed to claim it on insurance?

Yes .

Out,_Vile_Jelly

TranceNRG wrote: »

Lets say I inspected the property at exchange (I wasn't advised by my solicitor to do this) and it was in the same condition that it was in before but damage could have easily happened between exchange and completion. So then what? Are you supposed to claim it on insurance?

Yes- that's why you have insurance from the date of exchange, and in this instance you would have needed to note that the property had been vacant for a while. Sorry this wasn't made clear to you. I think I read about it in Martin's handy guide to getting a mortgage.

PasturesNew

Up to exchange it's the seller's responsibility/problem.
Upon exchange it's the buyer's financial responsibility/problem.

As you're going to be renovating, it's possible the cost/hassle of this is a minor irritant to your timescales/plans. Your "little man" sorted out the immediate problem, you now need to chuck in a good dehumidifier to dry out the room and possibly strip back a bit more than you intended to do.

It's really not worth your time/effort pursuing this any further. It definitely comes under the "shrug and get on with it" category. Then thank your lucky stars you weren't completely out of funds and moving in on completion day as your main/only home.

Thrugelmir

TranceNRG wrote: »

Lets say I inspected the property at exchange (I wasn't advised by my solicitor to do this) and it was in the same condition that it was in before but damage could have easily happened between exchange and completion. So then what? Are you supposed to claim it on insurance?

Yes. After exchange you are committed to the purchase. Hence the requirement for insurance to be in place. To protect not just yours but your lenders interests.

TranceNRG

Thing is there is joint building insurance so even if I wanted, I couldn't have got my own insurance anyway (I did inquire about this from my solicitor). The insurance policy says water damage is not covered when the property (my flat) has been vacant for more than 30 days. So even if I put my name down on the policy, the damage wouldn't have been covered since no one lived there. Seller's name was on the policy until yesterday.

It might seem like minor damage but what if there's bigger/structural damage to the floors and walls?

abinanthanb

A quick question, maybe rhetorical one, if the keys are not handed over to the Buyer until completion, how is he expected to prevent any damage between exchange and completion? As OP has mentioned, the insurance company is not paying for any water damage which makes it more complicated.

HouseBuyer77

I did think the vendor was responsible for handing over the property in the same condition it was in at exchange.

The reason a buyer still insures from exchange is because you're definitely buying it, once the damage has occurred you have more incentive to get it sorted quickly than the vendor so it's easier to claim on your insurance for any damage that does occur between exchange and completion rather than going through the process of suing the vendor. The insurance company could then presumably sue the vendor instead once they've paid out.

notbritishgas

I have just sold a property that was vacant for about six months.
When I insured the building at the outset there were several stipulations.
The water supply to be switched off, the hot water tanks to be drained, the central heating tank to be drained but not radiators.
Also property to be checked at least weekly.