Part Exchange Survey Issues

trevor_fidler

We're having a few issues with the survey on the house we are part-exchanging. It was surveyed by the home builders a couple of weeks ago and I know they have had the report back for about a week. However we were pushed into returning contracts last week which we did for both the part exchange and the house we are buying. Then the day after we got a request to carry out a damp and timber survey from the home builder.

Can they really still ask us to do more work after we have returned contracts? Should this not have been done and agreed before we signed? Also if the survey does find work is needed on the house we are selling, what then? Surely there is some limit on what we can be expected to do?

What makes it more annoying is over a month ago we were asked to choose finishing touches and extras for the new house which we did and paid for. If we now cannot afford remedial work on the hose we are selling, can we still pull out of the exchange? If we do are we entitled to the money back for the extras we have paid for on the new house?

Part-exchange they said, it's simpler than selling it yourself they said

davidmcn

You'll need to clarify what you mean by "returned contracts" - if you haven't exchanged contracts, then whether you've signed/posted the bits of paper is irrelevant, this is all still pre-contract negotiation. What they're asking for doesn't seem unreasonable or more than any other purchaser would want (other than you'd normally hope a purchaser would arrange their own specialist surveys).

trevor_fidler

We've signed and returned, but we don't have a completion date yet.

As you say i would have expected them to sort their own specialist surveys should they have doubts from the home builders report. Does anyone know what we should expect to pay for the damp/timber survey? We've been asked to do ground floor, so it would just be downstairs and it's a 3 bed mid-terrace.

I anticipated we might have a few minor things to remedy, but wasn't expecting that to part-exchange we would have to do lots of structural work. It's a 120 year old property with a cellar, so there is some damp in the cellar, but nothing major and it's not caused us any problems while we have lived here. There is no running or standing water in there and it's been dry enough for us to use it to store things.

My concern is that if the survey and any associated repairs are going to be expensive, we may have to pull out. If we do this are we entitled to our money back for the finishing touches and extras? They cost us £6,000 and if we can no longer afford to move due to damp repairs, then surely we don't have to pay for extras on a house we're no longer buying?

eddddy

The buyer (i.e. the builders in this case) would normally pay for the surveys.

If they found problems, it would be more usual to ask for a price reduction, than ask you to do any work. (i.e. they offer you less for your part exchange house).

But if there is still scope for them to ask for a price reduction, I doubt that you have exchanged contracts, so you can probably still back out from the purchase.

BUT... house builders often put 'extras' in a separate contract. And if you back out, you still have to pay for the extras.

(Their argument being, that if they've ordered and fitted a luxury lavender and avocado bathroom suite at your request, they might not find another buyer who is prepared to pay the extra for it.)