Internal water leak in property we ar buying - but already exchanged contracts :(

lady38_me

We exchanged contracts on Tuesday with completion date being the 30th June. I have started to sort out all the accounts and just called the water company.

They informed me that there is an internal leak in the property and the property has a high consumption flag attached to it. They said it's the owner's responsibility to sort this out and i should try and insist that the current owner sort this out. It could be a really expensive problem to fix.

Obviously it was a bit of a shock and an unpleasant surpirise . As we have already exchanged, what can we do to make the current owner to sort this out? Or can we actually?

Is we were not aware of it, we didn't ask for any documents or evidence and now i feel it's almost too late but i don't want to be responsible for a massive bill and fixing internal leak.

Any advice please?

The property is relatively new - 4 years old but i am not sure that the remaining building guarantee covers water leaks.

Thank you!!!!!

MaryNB

I'm not really sure there's much you can do to force the current owners to fix it after exchange (I'm not sure though).
But on a separate note you shouldn't be setting up accounts yet. There's a risk you could accidentally close the accounts for the current occupiers if not done correctly. It could also muddle things when it comes to closing and opening meter readings. They all need to be done the day you move in.

I hope the buildings insurance you took out includes trace and access in case the guarantee doesn't cover it! 

TBagpuss

Speak to your solicitor. 

I don't recall anything specific on the PIF where they would have had to declare this, and I *think* that unless they actively lied , or the problem developed after exchange, then it's a case of 'buyer beware'

whether there would be cover as it is a new property would, I think, depend on the cause of the leak. If it is due to substandard construction then I think it is covered (https://www.nhbc.co.uk/homeowners/what-does-buildmark-cover) , but not, obviously, if it isn't due to anything the builder did or failed to do to the appropriate standard. 

Speak to your solicitor - it may be that the first step would be to ask the sellers whether they have made a claim under the building guarantee and what the response was

user1977

lady38_me said:

They informed me that there is an internal leak in the property and the property has a high consumption flag attached to it. 

And are they sure their information is up to date? Could already have been sorted and nobody's told them.

Windofchange

Do you have any idea as to how bad the leak is? We had communication from Thames Water similarly advising us that there was likely and internal leak due to continual water usage on our meter. Turns out one of the seals on our kitchen sink tap was knackered and I just hadn't really noticed the constant dripping. 20p for a new seal to stop the tap dripping and problem solved. The issue isn't necessarily a serious problem, and I would suggest that if yourselves or the current occupiers haven't noticed water coming through the ceilings, puddles on the floor, stains on the wallpaper etc that it may not actually be that big of a deal to fix. 

General_Grant

As you have exchanged, did you not then insure the property?  I haven't bought a property for a long time but do remember being advised to insure it once contracts were exchanged.

lady38_me

Thank you all for your replies - as always, the collective wisdom is great!

@Windofchnage - i really hope you are right. I called the water company second time and obviously they couldn't give me any figures as the house it's not ours yet but they said that a leak is consequent consumption of more than 8 L in 24 hours. How much more it was i am not sure but 8 L sounds not SO bad.

@General_Grant- yes, I bought the insurance but I didn't specifically paid attention to buy the one to cover all potential faults so not sure how much is covered by it in terms of water leaks. Need to investigate and read the documents.

@User1977 - i do hope it's tue. the last visit from the company was in April - plenty of time to sort things out. Waiting for more info on that

@TBagpuss - i have, thanks! They are contacting the seller's solicitors as i type

@Mary - you are right, i wasn't closing their account so should be fine

eddddy

A few considerations:

• It might just be a dripping tap or a leaking flush valve on a toilet or similar. (Or the current owners have been excessively watering their garden, to make it look nice when buyers view!)

• Builders warranties (like NHBC) typically only cover problems like plumbing leaks for 2 years - so that's unlikely to help.

• If you exchanged contracts on Tuesday, I guess that's when your insurance started. If the water company have flagged high usage, the leak won't have started since Tuesday. i.e. The problem existed before your policy started, so won't be covered.

• You could try to persuade the current owners to investigate.  They might have 'trace and access' cover on their home insurance - but often that only applies if the escaping water has done damage. e.g. stained/wet walls, floors or ceilings.

It's if the leak is underground, under the house etc that it can get expensive.

MaryNB

lady38_me said:

Thank you all for your replies - as always, the collective wisdom is great!

@Windofchnage - i really hope you are right. I called the water company second time and obviously they couldn't give me any figures as the house it's not ours yet but they said that a leak is consequent consumption of more than 8 L in 24 hours. How much more it was i am not sure but 8 L sounds not SO bad.

@General_Grant- yes, I bought the insurance but I didn't specifically paid attention to buy the one to cover all potential faults so not sure how much is covered by it in terms of water leaks. Need to investigate and read the documents.

@User1977 - i do hope it's tue. the last visit from the company was in April - plenty of time to sort things out. Waiting for more info on that

@TBagpuss - i have, thanks! They are contacting the seller's solicitors as i type

@Mary - you are right, i wasn't closing their account so should be fine

A dual flush toilet is 4L/6L as a comparison.
Presumably it's a constant leak, that would be equivalent to a mug of tea (an SI unit in my world) every 45min so maybe something as simple as a leaky outdoor tap?

user1977

Ok, so interesting to know about as a maintenance point, but hardly a reason not to buy.

AdrianC

What did your survey say?