Tenants buying house have asked me to pay for investigations and repairs

[Wonderifitsme]

Have not sold a house before and have no-one to ask on this.

I moved abroad a couple of years ago and rented my (v nice) house to some nice tenants. They wanted to buy the place and I agreed, at a slightly lower price than the estate agent valuation range for the ease of having a secure sale etc (think valuation range 400-450, agreed 390).

they have had a survey, great, which has come up with an internal leak in the upstairs ensuite, possibly making a damp issue in floor. They have asked me if I am willing to pay for further investigation and for costs of repair.

Gut feeling is that this is not right. Surely costs of further investigations are borne by potential buyers and then you negotiate on price. Since I agreed a price at below 3 estate agents’ estimates I’m loath to renegotiate further. But are my instincts right? Tia

As a landlord that’s the right thing to do. You still own the house so you benefit from its maintenance and improvement. Also it’s the right thing to do when you have tenants paying you to live in it.

The OP is a seller. If she improves the house, the buyer benefits.

I think a lot of people posting on this thread are tenants and viewing it from that perspective.

In the housing market conventions are different. Buyers typically cover the cost of investigations and negotiate a reduction if defects are uncovered.

The OP has already offered a substantial reduction so she just needs to decide whether to proceed with this buyer or not.

get it listed on the open market.at true(negotionable) value..you dont owe the tennants anything ..cheeky fuckers

Even if they were renting off you there is a leak found and you are liable to fix it. It will come up on everyone's surveys so you need to get it done.

Thanks so much to all.
i can see from responses that the problem is the two different roles. As landlord I am obligated to repair thr leak, which I would absolutely do. As a prospective seller I am not.
the discount is substantial and yes I am confident the house would achieve somewhere in the (large) range the estate agents have given since properties are really in demand here.

so the question is whether I am prepared to give discount plus pay for investigation plus pay for repair. And that it seems to me is a bit much to ask.

karmaiscool I think you have summed it up really well thank you. Will probably go along these lines since it separates the responsibilities as landlord and seller really well.

thankyou to all for helping me think it through

I would be wary of convincing yourself that you aren't wearing two simultaneous hats. You are the landlord first and foremost - so the leak is your responsibility to find and fix. That is quite separate from the issue of the potential sale. There is no world where you aren't liable to fix the leak - the only decision you have to make is whether to continue with the sale to your tenants.

I'm selling a flat right now and am getting these sorts of seller demands. There's no right or wrong - it's a negotiation between two parties, no one has to agree to anything.

As a seller I would be very wary of 'investigations' - they tend to be carried out by companies that have a big interest in finding a problems, and then selling you a solution. Some of them even sell themselves on being a way for buyers to get money off. Damp-proofing' companies are bad for this.

Then of course is the risk that an 'investigation' for one issue reveals something worse - and they'll want you to fix that as well.

It sounds like there may be an leak, but the fact they have managed to live there without raising it suggests it isn't that bad. I would offer £500 off the asking price and they can take a look at it if and when they wants to (which they probably won't given they've lived there happily without raising it).

Honestly OP I don't understand why you're unsure about this, or the replies that the tenants are 'cheeky'.

You are a landlord with tenants in situ. You have a leak bad enough that there is 'damp in cupboards'. You as a landlord are responsible for maintenance of the property which includes leaks and damp no matter how small!

You are NOT doing your tenants a favour in investigating and repairing the leak.

You seem to think your responsibilities as a landlord are over as you're selling to your tenants which is quite presumptious IMO.

If I were your tenants, I'd give you a tight timeframe to complete the repair. If it was not done, I'd refuse to progress the purchase of the property.

You'd then have to give your tenants 4 months notice that you require the property back. They can refuse viewings to find a new buyer in that time. They don't have to leave after the 4 months. You would need to go through the court repossession process and then the eviction process which could take 3-6 months. In the meantime your tenants are buying another property so they don't need a landlord reference and may wish to stay as long as possible if their purchase drags on.

So for the sake of trying to get out of your legal responsibilities as a landlord you want to delay the sale of your property by a year minimum with the stress of the court/eviction process when the tenants will make you repair the leak anyway as they can get environmental health involved who take damp issues quite seriously?

You agreed the sale price with there not being a leak and if you sold for less than market value that's on you.

We live in what is classed as a highly sought after area in the SE btw. House next door was said sold when we moved in 2 years ago. Sale must have fallen through as it was put back on the market, it's been Sold STC twice since but never completed and it's now for sale again! I have friends who've had issues getting a buyer too so I think you'd be insane to risk a 'safe' sale.

Just fix the damn leak!

If you’re genuinely willing to risk the delay and uncertainty including having to give notice, the risk they may not move out on time or that you may need to pay for redecoration etc then you’re doing the right thing. As buyer and seller the discount is for a quick and secure sale sold as seen. Otherwise you are landlord and tenant. You’ll investigate and fix the leak, then market the property on the open market and they can bid if they are still interested.

Just to be clear, OP, now that you are aware there is a leak at the property - you are legally obligated to disclose that during the conveyancing process to the new buyers. If you declare that you aren’t aware of any issues when you are, then you are withholding material information which is a problem. Also, your buildings insurance likely requires that you maintain the property, so by doing nothing at the moment - if the leak becomes worse to the point where you put in an insurance claim, you may have the claim refused as you’ve failed to comply with policy terms. Some people here may think this is dramatic, but as I see it all roads lead to you having to chose to be dishonest, or repair the leak - in a world where you tell your tenant you’re not budging on price.

Why? OP’s not a housing charity or not for profit organisation

Excellent - she won’t have to pay for any eviction proceedings or diminution on sale price by having sitting tenants - win win!

Would your home insurance cover the cost?

IF the bigger picture is that OP can sell the house for significantly higher on the open market, she should fix the leak And put on the open market

If they're still renting and you're letting it through an agent, tell the agent tenants have reported a leak and let them handle it.

i can see from responses that the problem is the two different roles. As landlord I am obligated to repair thr leak, which I would absolutely do. As a prospective seller I am not.

You will continue to be their landlord until the tenancy ends. You cannot ignore your obligations under housing law just because you now want to sell.

Also, because the problem is damp you can't just bodge a repair - you are legally required to investigate and address the actual cause.

I don’t think it’s the tenants who are cheeky fuckers.

As the seller, it is entirely up to you. what i would do is either sell it as it is at the lower price or change your mind, say no to the current buyer. Fix the leak and remarket at higher value.

All the red flags here. Their offer was £310. They’re looking to get back to this and are counting on you saying that you’ll pay for all of the work, but inevitably there will be something else to bring it down. If the area is sought after, get someone in to fix the leak. Then put it on the open market. Presumably the EAs you had in realised there was a sitting tenant and priced it accordingly? If you can do without the rental income, get them out before you sell it.

"Just fix the damn leak". Sounds like you're the presumptuous one with the uppity tone.

Everyone who is insisting the OP should fulfil her obligations as a landlord, are you expecting her to continue with the discounted sale to the tenants?

They can’t have it both ways, if the OP does bear the cost of the investigation and repair as a landlord, she’s entitled to decide to withdraw from the sale, meaning the buyers lose anything they have spent so far on surveys, legal costs etc.

She could then offer them the house at a less discounted price to cover the repair, or give them notice so that she could sell the house on the open market.

Do you think that’s what the tenants/buyers would want?

But the discounted sale also benefits the OP. Buyer less likely to pull out, no chain to collapse, presumably she's had the sense to reach agreemen with the tenants and not instructed an agent to avoid fees, no need to give notice and no void period. She'd be an idiot to lose these buyers and risk the open market just as it goes into a seasonal lull.

All true, it’s something for the OP to weigh up.

Because it wasn't visible.

It is the landlord's responsibility to fix leaks.

They can absolutely have it both ways. Unless or until the exchange of contracts she’s their landlord and has responsibility for maintaining the property. The potential sale is a completely separate issue. If she really wants to go to the expense of eviction, loss of income between the end of the tenancy and completing the sale, estate agents fees and selling in a buyers’ market obviously she should crack on.

This. Point out you can sell the hous on the open market for a higher price. They can take it as it is or leave it. They are taking the piss.