Seller refusing to get Retention after Sale Agreed

Chrismvideo

Hello..

Was wondering if someone could help me with an answer to my problem? Went Sale Agreed on a house last November and it was only after our solicitor received all the information that it was discovered there are 3 extensions on the house none of which have Planning Permission! Two of these extensions I've had an architect look into and he said they will be exempt. However problem is there is a two storey extension on the side of the property which was built over 30 years ago which requires retention.
My problem is the seller doesn't want to apply for retention and the bank will not go ahead with our loan unless this issue is sorted. The house requires full renovation inside but the two story extension is a huge problem. We think the seller (who inherited the property from his father who passed away) would be happy to put the house back on the market and wait for a cash buyer. When viewing the house and putting bids on it was never mentioned that this was an issue, the sellers solicitor is however saying it was sold as seen and the EA should have told us all of this.
When I spoke to the EA he said he knew absolutely nothing about it? Is there anything we can do as we already have proposed plans drawn up, an architect on standby to apply for retention etc all they have to do is allow it to go ahead and agree to let the cost be taken off the final price that was agreed?

Metric Tensor

Chrismvideo wrote: »

The sellers solicitor is however saying it was sold as seen

This is bullsh!t. Your solicitor should (in the most indelicate way they can) tell them to save that sort of talk for the dick measuring contest at the pub.

In my opinion you have to stay 100% firm. You will NOT be buying this property until the vendor gets retention. (BTW - he should do this himself and pay for it himself - then you pay full whack for a compliant house. Don't get into deals of your architect doing it - it's a recipe for disaster.)

The risk is that he puts it back on the market and if he does you have to accept it. This is the biggest purchase you will ever make and you'll spend the next 20 years of your life paying for it. You should do it right or don't do it at all. It's very difficult but your head has to rule your heart (which is made more difficult by the fact that you have already started making dream home plans for a house that you hadn't yet got - sorry!)

"Sold as seen" is for NAMA auctions and cash investment purchasers who can afford a certain percentage loss on their investments. Due diligence is for the rest of us poor grafters!!!

cml387

It's a house you're buying, not a 1985 Hyundai Accent from a backstreet garage.

The solicitor for the vendor shouldn't even have agreed to act for the sale until the planning permission was sorted.

sydthebeat

2 things

1. youre solicitor shouldnt have gone sale agreed without the necessary certifications being in place.
2. the sellers solicitor is COMPLETELY wrong to claim "sale as seen" ... FFS it isnt a stereo system being sold on done deal.


i dont think youre being left with much option. if the seller will not provide proper certification and your bank will not provide a mortgage on an uncertified property, you dont really have any cards to play.

Chrismvideo

1. youre solicitor shouldnt have gone sale agreed without the necessary certifications being in place.

We want Sale Agreed with the EA and about a week later our solicitor received some of the information. He then had to contact their solicitor as they hadn't sent out plans etc. It was only then it was noticed the problem with planning and we've been trying to sort it all since.

Their solicitor didn't realise we weren't cash buyers and then contacted the seller who said it was sold as seen!

Thanks for all the replies, I guess its pretty much dead in the water at this stage. It's just annoying we are left with bills for both our architect and solicitor with nothing to show for it..

Hopefully after some discussion this week their solicitor will be able to convince them to go for retention. We've been told by our architect that it will pass no problem, they just have to agree to it. Problem is they don't wanna wait 2months for their money.. It's very annoying considering we were looking almost a year with the hope of starting a family soon..

Anyway thanks again!

Metric Tensor

They'll be waiting more than two months either way:

1. If they apply for retention they will have to engage someone who will then measure, draw-up, advertise, etc. - say 3 weeks and then the planning will take 12 weeks. Allowing for everything else to be 100% perfect with the paperwork you're talking 16-17 weeks minimum.

2. If they go back to the market regardless of what BS advice they get about cash buyers they will not have their money in 16 weeks. Also if they attract this mythical, golden-goose, "cash buyer" who is happy to buy an unauthorised development said buyer will haggle them down substantially to lessen his/her risk. (Remember that a good portion of "cash buyers" would demand they vendor get retention just as you are doing.)

On another point - it should not matter to your solicitor when doing the due diligence whether or not you are a cash buyer - the decision to buy a property that is unauthorised is not the solicitor's decision to make, in fact they should be advising against it ... STRONGLY.

Chrismvideo

Thanks for that Metric Tensor..

Wow I didn't realise it could take upto 17 weeks, our loan offer runs out in the middle of April so thats another problem. I see what you are saying also about a cash buyer and you are totally right as far as I'm concerned, who in their right mind would buy a property with all these outstanding issues?! It is located in a really good area of south Dublin so I know the demand would be high but cash buyer or not why would anyone sign off on a property with no planning?

Our solicitor has advised us to look elsewhere as this issue could really drag on, problem is as i said we really have our hearts set on it and from looking though Daft the past few weeks there really is very little else out there within our budget at the minute.. We are in no hurry to move form where we are at the minute as this house belongs to my brother so we are not been held to a lease, which makes us some of the lucky few.

I going to talk with my solicitor next week and tell them to push for retention, might also contact the EA to ask them to contact seller also as what they are doing is a joke!

Thanks again for all this advice..

Gomango

Was in similar position to yourself op.

According to my solicitor, my bank had concerns re garage extension and dormer not having planning. The bank later accepted a declaration from the vendors stating there were no objections to the building in the last ten years. I undertook to apply for retention myself.

Maybe ask your solicitor can you go this route?

BryanF

OP have you sat down and discussed this fully with the bank?

Angry bird

Two options. If they won't apply for retention either walk away or demand a reduction only if you're confident retention can be obtained in time. Still would strongly advise option 1.

Poor Uncle Tom

Just something else worth considering.

You say the two storey extension built 30 years ago is the only one requiring retention. Are you absolutely sure about that?

If the other extensions were built after the two storey extension, they will need retention as well. Exemptions do not apply to any property where there is an unauthorised development.