Buyer pulls out last minute due to subsidance claim

MayQueen

I had a buyer who just pulled out due to a subsidance claim found nearing the end of the sale, but not after completion. The flat is in a large block and I believe the subsidance does not affect the area in which my flat is situated, regarding the works and scaffolding, etc. The management company have appointed structural engineers to sort out the problem and have advised of an insurance excess of £1,000. 
The estate agents say "we need confirmation from the management company when this is all dealt with and that the building is structurally sound before finding another buyer". My question is, can the estate agents keep the property up for sale in the meantime, with this explanation to any potential buyers? 

user1977

Why do you think they wouldn't be? I think they're just warning that any other buyer would probably need reassurance before progressing.

eddddy

MayQueen said:

  
The estate agents say "we need confirmation from the management company when this is all dealt with and that the building is structurally sound before finding another buyer". My question is, can the estate agents keep the property up for sale in the meantime, with this explanation to any potential buyers? 

There's no law saying that you can't market the property in the meantime.

It's really just a case of whether viewers will be put off by the scaffolding, diggers, concrete mixer trucks, or whatever - and make them less likely to offer. (Especially if your target market includes First Time Buyers, who might be more concerned by that kind of stuff.)


Presumably, the repairs are being paid for by the insurers. A buyer will probably want assurance that no costs will be billed to them.

But a buildings insurance claim might cause buildings insurance premiums to skyrocket in future years, which might be a worry for a buyer.

Chief_of_Staffy

It's a bizarre thing for the estate agents to say. Ask them why the structure of the building is any of their business.

eddddy

Chief_of_Staffy said:

It's a bizarre thing for the estate agents to say. Ask them why the structure of the building is any of their business.

Not sure what you mean. It is literally the estate agent's business - to sell the the OP's flat.

Presumably, the estate agent is advising that the flat is unlikely to sell (for a reasonable price) until the Management Company is able to show that they have a Certificate Of Structural adequacy, or equivalent, for the building that the flat is in.

Chief_of_Staffy

eddddy said:

Chief_of_Staffy said:

It's a bizarre thing for the estate agents to say. Ask them why the structure of the building is any of their business.

Not sure what you mean. It is literally the estate agent's business - to sell the the OP's flat.

Presumably, the estate agent is advising that the flat is unlikely to sell (for a reasonable price) until the Management Company is able to show that they have a Certificate Of Structural adequacy, or equivalent, for the building that the flat is in.

I don't know why you say 'presumably' when the quote shows that is not the case:

"we need confirmation from the management company when this is all dealt with and that the building is structurally sound before finding another buyer"

Yes, it's the estate agent's business to sell the flat. Which makes it bizarre for them to state they aren't going to market it until some arbitrary information is received. If they're instructed to market a property then the only thing required of them is to provide material and accurate information to potential buyers. That's it.

ExEstateAgent

Chief_of_Staffy said:

eddddy said:

Chief_of_Staffy said:

It's a bizarre thing for the estate agents to say. Ask them why the structure of the building is any of their business.

Not sure what you mean. It is literally the estate agent's business - to sell the the OP's flat.

Presumably, the estate agent is advising that the flat is unlikely to sell (for a reasonable price) until the Management Company is able to show that they have a Certificate Of Structural adequacy, or equivalent, for the building that the flat is in.

I don't know why you say 'presumably' when the quote shows that is not the case:

"we need confirmation from the management company when this is all dealt with and that the building is structurally sound before finding another buyer"

Yes, it's the estate agent's business to sell the flat. Which makes it bizarre for them to state they aren't going to market it until some arbitrary information is received. If they're instructed to market a property then the only thing required of them is to provide material and accurate information to potential buyers. That's it.

The EA doesn't want to waste their own time marketing a property that most buyers wouldn't buy, without the reassurance mentioned. 

The OP could put it up for auction but won't get as much for it especially in the current state. 

MayQueen

Thank you so much everyone for your replies, which are all correct and reasonable.
Eddddy, has it in a nutshell really. 
I have now decided to go along with the Estate Agents advice to not put it back on the market it until the works have been done. It's a terrible ordeal which has already cost me quite a lot of money, as is likely to cost me considerably more!

theartfullodger

What does YOUR contract with agent state (if anything) about such circumstances?

ReadySteadyPop

Chief_of_Staffy said:

It's a bizarre thing for the estate agents to say. Ask them why the structure of the building is any of their business.

They are in the business of marketing safe structurally sound properties, that is why they need to know.

ReadySteadyPop

eddddy said:

Chief_of_Staffy said:

It's a bizarre thing for the estate agents to say. Ask them why the structure of the building is any of their business.

Not sure what you mean. It is literally the estate agent's business - to sell the the OP's flat.

Presumably, the estate agent is advising that the flat is unlikely to sell (for a reasonable price) until the Management Company is able to show that they have a Certificate Of Structural adequacy, or equivalent, for the building that the flat is in.

A history of structural problems can still limit buyers, it would probably be more appealing to BTL than FTB in my opinion, and that could mean low offers.