House buying without building regulations

y2graham

Hi all. We are just about to complete on a house purchase but we have received news from our solicitor that our seller does not have building regs sign off for some internal structural work that was done on the property about 15 months ago. Our solicitor gave us the option of indemnity insurance or get the seller to get it signed off. We asked for the seller to get the work signed off but they want to get indemnity which they are willing to pay for. For us indemnity isn't worth the paper it's written on its the safety of the work that's been done that is our main concern. My question is whether a reduction in the selling price is justified along with indemnity given that we would be liable for any future issues with the work? If it is justified much would be reasonable? Many thanks.

davidmcn

It's not justified to reduce the price for defects which you don't know exist (and probably don't). If you need reassurance about any structural problems, you send in your structural engineer to have a look.

Davesnave

If a structural engineer is to examine some types of work for compliance, they may need to make holes, which won't go down well with the vendor.

You say you are about to 'complete,' but do you really mean exchange? It's a bit late in the day to be sending in an engineer if exchange has happened. However, it would make acceptance of any invasive examination easier, as the vendor would assume you'd not walk away without a very good reason..

SmashedAvacado

Has the seller said why they didnt get the work signed off? Presumably they engaged a professional? its the reluctance of the seller to cooperate that is the issue here and also, as you say, the insurance covers enforcement by the local authority but not the work itself so if they work is dangerous or needs putting right the insurance will not help you unless the LA take action against you (and your insurance policy will probably prevent you asking the LA to take action against you). I would want further information on the work, who did it, why they didnt get sign off. Making a few holes now could save you big later.

sheramber

I agree. Why do they not want to get it signed off?

We bought a house which did not have a completion certificate but the owner advised us when we viewed and said they would get it done.

They did have planning permission for the work.

Some minor things needed done to bring it up to current regs which they paid for but otherwise no problems.

TrickyDicky101

Getting sign off could take ages so if you go that route you almost certainly won't be completing any time soon (or exchanging if that's what you actually meant).

foxy-stoat

If the work happened 15 years ago then indemnity would be the way to go....15 months ago I would walk away ( if not already exchanged ) as the vendor will not get the building regulations signed off as they would of done so at the time, if you have exchanged I would be asking tough questions to your solicitor.

y2graham

We have not exchanged yet but we were planning on exchanging this week or next and complete by the end of the month. I think firstly the work has been done over a year ago so any issues could have been flagged already? Secondly, we had a homebuyers survey done which concluded that the structure of the house is sound but couldn't comment specifically on the internal work that had been done due to it being within the fabric of the building. Thirdly we have our chain to think about too as we don't want to lose our buyer because of this. Our insurance company is happy that as long as the house is structurally sound its ok with them (They aren't interested in whether the work has been signed off or not). If an issue arrises then building insurance should in theory cover it?

foxy-stoat

y2graham wrote: »

We have not exchanged yet but we were planning on exchanging this week or next and complete by the end of the month. I think firstly the work has been done over a year ago so any issues could have been flagged already? Secondly, we had a homebuyers survey done which concluded that the structure of the house is sound but couldn't comment specifically on the internal work that had been done due to it being within the fabric of the building. Thirdly we have our chain to think about too as we don't want to lose our buyer because of this. Our insurance company is happy that as long as the house is structurally sound its ok with them (They aren't interested in whether the work has been signed off or not). If an issue arrises then building insurance should in theory cover it?

Your buying the most expensive thing in your life, you need to know that it is structurally sound but you dont know nor do building control nor do your insurers - do you know what the internal structural work actually was and reason for not getting sign off?

If BC officer went in at the start and made his visits then I would be more relaxed - they may of just not made the final visit to sign it off but they have visited while the works took place.

I would need chapter and verse from the vendors solicitors before proceeding - if that breaks the chain so be it, not worth the risk.

davidmcn

y2graham wrote: »

If an issue arrises then building insurance should in theory cover it?

No, buildings insurance covers you for the risks stated in the policy. Read it. They won't include "house falling down due to previous owner's rubbish building work".

y2graham

davidmcn wrote: »

No, buildings insurance covers you for the risks stated in the policy. Read it. They won't include "house falling down due to previous owner's rubbish building work".

I didn't say house falls down i said issues with structural work. They are two very different things!