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Original poster

i want to pull out of purchase on day of move

30 replies

1harley1 · 20/07/2013 06:32

total panic, just exchanged contracts on a house that had some underpinning to the conservatory in 2006, I never took much notice as its the conservatory and nothing has happened since work done, yesterday I tried to get insurance and its a nightmare, I now have insurance to start Monday aka 2 days time but they wont add subsidence to the insurance until I pay for a professional report, I paid cash just about all the money I have in the world after working all life so did not bother with surveyor, I wish to god now I had not brought it, its Saturday so cant speak to solicitor, what would happen if monday the day of the move I pulled out

OP posts:
TheRealFellatio · 20/07/2013 06:37

Don't panic. Ask the current owners who they are insured with - if that company were the ones who paid for the underpinning they are obliged to continue their policy with you. You will lose an awful lots of money if you pull out now.

coffeewineandchocolate · 20/07/2013 06:39

deep breath, remember why you wanted the house and do as fellatio says.

Carolra · 20/07/2013 06:40

If you've exchanged and paid a deposit, you'd lose the deposit.

I agree with the pervious poster, the owners must have insurance and that company are legally obliged to sell you the same cover. The info might even be somewhere in the paperwork.

There's usually something in any house purchase that takes the "shine" off it. So don't panic!

Chubfuddler · 20/07/2013 06:43

And if they can't produce the insurance docs about the underpinning they should take out a policy for your benefit in case of any problems. Your solicitor should have advised you about all this.

Roshbegosh · 20/07/2013 06:53

Don't worry, you are doing something huge here and you will panic and question your decisions. Maybe you have had an error of judgement but you will come out the other side, still standing. Like another poster said, think about why you wanted the house to begin with and just focus on sorting this problem out without letting it take the gloss off your new home. Good luck, it is hugely stressful at the best of times.

specialsubject · 20/07/2013 09:55

you will lose a fortune if you pull out now so not an option. Contact the owners, get their policy details and insure with them. And do it ASAP, you must now buy the place so you need to insure it.

Original poster
1harley1 · 21/07/2013 03:23

Hi all tanks for info, I contacted them to ask about their insurance providers they gave me the details BUT when I rang the insurers they told me that they had no knowledge of the subsidence, the owners had not told them about it and they got real shirty and they would be contacting the owners about withholding info, I have not paid any deposit, some of the threads on this web site state I would only lose any costs that they sue me for aka solicitors bills and removals, I have not slept 2 nights, even if it cots me a couple of grand I think I am pulling out, it means telling them today to stop packing with only 24 hours notice but to buy a house I cant re sell easily OR could potentially be falling down is a no no. The insurers did tell me I would need a full structural survey before any one would insure it, WHY did my solicitor not tell me any of this or even warn me of the consequences of buying this house

OP posts:
LIZS · 21/07/2013 06:49

Calm down. Try an insurance broker . I never took much notice as its the conservatory and nothing has happened since work done I don't think it is up to the solicitor to point this out . You chose to turn a blind eye and not have a survey and presumably the house is priced accordingly. At worst you have a surveyor round and either get confirmation all is ok or do work, was previous guaranteed ? If you pull out now you are liable for a deposit as per your contract (even if you haven't physically paid one yet) plus your legal costs and maybe theirs too.

Chubfuddler · 21/07/2013 06:57

Just to clarify I'm talking about a specific insurance policy to give indemnity against problems with the conservatory, not their buildings/contents insurance which will lapse when they sell to you. If they don't have one already they should take one out to cover you. Talk to your solicitor on Monday.

I agree it is likely your solicitor has advised you, probably on a letter you haven't taken much notice of, of the perils of not getting a survey done.

LIZS · 21/07/2013 07:01

Presumably you had building insurance when you exchanged , otherwise solicitor wouldn't have gone ahead.

Chubfuddler · 21/07/2013 07:02

And YY to above re deposit. Whether you've paid one up front of not the standard contract of sale states 10% payable on exchange and will be lost if you default on completion.

Roshbegosh · 21/07/2013 07:32

This was underpinning of a conservatory in 2006. You have no reason to think there is a problem with the house but the conservatory wasn't buit properly, and that has been sorted out. I think you are in a state of panic because this is a huge thing to do, it's all your savings and it can be utterly terrifying to make these leaps of faith alone. Please try to remember why you liked the house to begin with and focus on the positive. It isn't going to fall down.

Mama1980 · 21/07/2013 07:42

I think if you pull out now you will be eligible for all costs plus your deposit as stated in the contract regardless of whether or these have been already paid. It happened to a friend of mine and the paperwork and costs the guy who pulled out had to pay made me wince! Try to calm down I totally understand where your coming from but I hope you've had some sleep and can ring some more insurance brokers today.
Dnt really understand why this wasn't flagged by your solicitor, have you asked them? Why do you love this house?

AllBellyandBoobs · 21/07/2013 07:56

Don't the current owners have the paperwork relating to the underpinning? Structural report? Builders report? That, and a normal surveyor report was all our insurers required when we bought an underpinned property. Remember, as long as the underpinning was done correctly, you have a very secure structure which is not now going to fall down

LIZS · 21/07/2013 10:38

plus your failure to complete would impact on your vendors' purchase and anyone further up the chain , not sure what the financial implications of any delay to those deals might be.

Roshbegosh · 21/07/2013 10:43

Good point lizs
You have left it too late and the costs of pulling out are likely to exceed any possible costs if you proceed. And you may not have any costs with this house.

Original poster
1harley1 · 21/07/2013 14:58

hi everyone, I have calmed down now, feel he has let me down by telling me he had house insurance inc subsidence therefore I assumed I could just take over his insurance from the company but alas as I have said he had not told the insurance company about the subsidence so I have house ins starting tomorrow but they will not cover subsidence, I will just have to get the survey done this week to get paperwork for subsidence ins

thanks to all for your comments much appreciated

bob

OP posts:
LIZS · 21/07/2013 15:01

Once you have exchanged the buildings insurance becomes your responsibility but maybe you only need that with a mortgage.

Chubfuddler · 21/07/2013 15:01

Why on earth would you assume that you can take over someone else's house insurance? You don't take their car insurance when you buy a car.

Roshbegosh · 21/07/2013 15:02

Glad you feel better, it will all work out in the end.

Enjoy your new home Flowers. Hope you love it x

AnythingNotEverything · 21/07/2013 15:37

Chub- that's how it works with issues such as subsidence. To ensure that a property isn't left uninsurable, the company who dealt with the original claim must continue to offer insurance on the property (at a cost of their choosing!).

Roshbegosh · 21/07/2013 15:44

But the insurers hadn't been told about the subsidence. It was the conservatory not the actual house so presumably a badly built extension.

digerd · 21/07/2013 16:04

My solicitor phoned me to say did I know the extension wall in the living room had been underpinned due to subsidence caused by tree roots. He said he was going to search to find if all the tree roots had been taken out/destroyed so it wouldn't grow again.
I asked him what it meant and he told me there was a panic stigma involved in underpinning due to subsidence and, I found out the lovely house had been on the market for over a year and nobody would buy it.

My friends who lived in the area told me in shock not to touch it with a barge pole. I read that people could not get mortgages or insurance for further subsidence, but also read about taking out the same insurance as the previous people .
I pulled out before any contract was signed or deposit paid.

LIZS · 21/07/2013 16:37

If op were getting a mortgage all these issues would have had to be resolved much sooner. However as a cash buyer she has turned a blind eye and didn't assess the implications. I wonder who identified the subsidence initially and why it didn't go to an insurer at that point Hmm. How old is the conservatory ?

Chubfuddler · 21/07/2013 16:56

Oh I would have thought this would be dealt with by a stand alone indemnity policy, like chancel repair or missing building regs are (awaits op finding out is in a chancel repair parish and hasn't checked building regs either).