Incorrect info and no paperwork for renovations

[OUB1974]

It turns out that the info provided to us by our seller is wrong and there is no completion certificate or building regulations approval for some renovations that they have had done. In addition our surveyor said they looked like they might be of a low standards which of course we have no way of knowing unless we dismantle part of it to check for insulation, damp proofing etc.

We plan to sell in a few years and don't want to inherit this problem. However, we are only a few days off exchange and completion (this has only literally come to light when they couldn't provide the paperwork they claimed to have).

Does it seem reasonable to reduce our offer to take this into account and any future works? We have been given a figure by our surveyor on a likely cost, but of course there is always the chance it's fine, but we just have no paperwork so can'tfind out either way.

We wouldn't have offered on it had we known, but now we just want to move and it makes sense to seeing we can save the money and sort it out ourselves. I'm very annoyed as they said it had all been approved and signed off, but it hasnt.

Are you a cash buyer

Yes we are, so we don't need to prove anything to a mortgage company. But we're wary of problems when we sell. We have been offered indemnity, but I've been told that the likelihood of the council doing anything about it is very low, and as it doesnt protect against getting the work redone, I cant see the point.

At the moment it's their problem as soon as you buy it its your problem

OP I personally would walk away (although be totally gutted about it, especially as you are so close to exchange). As you say in your post, if you know that you'll want to sell in a few years you are walking in to a potential minefield.

I guess it also depends what the renovations involve, and what is at stake? Will it be very disruptive and expensive to remedy the work? eg having to put in extra insulation to bring up to correct specification. Is it possible to correct the work, without having to totally dismantle what they have done?

But not just that, is the building actually safe to live in? For instance, exits/ doorways are the right size and spec, fire retardancy etc.

The chances of the Council coming knocking are very low; the problem is getting the property to a standard where it can be signed off for your future sale.

It is a room that could be closed off while we did the work, so it wouldnt be a huge disruption, but certainly inconvenient. My husband can do parts himself if required. Yes it may need insulation or the floor raising up, but equally it may not require much. At the least, he council will have to remove part of the wall to check these things.

We don't really want to do it, but on the other hand, going into rental/staying with family and paying for that, then moving again once we find somewhere would be equally disruptive and could work out more expensive. As we are buying outright, having to pay rent would be tricky as we have low incomes, it's just that we have the equity in our current house to buy this one. It's a nice enough house. Not a forever home but it suits us at the moment. We felt we slightly overpaid for it, especially as there is other work to do, but we were happy with the situation until this happened.

I'm just so annoyed with them saying it was all in order when it wasnt. A perfect house came up 2 months ago,but we did the honourable thing and stuck with our offer!

Is it that they do not have certificates or that it was not signed off? Suggest reducing price to a level where that room is not their or work needs redoing, it might focus vendor's mind. And involve the EA. Indemnity policy only covers council enforcement which is unlikely, especially if work was internal.

You're right about the indemnity being useless. The issue will be if the building work is shoddy, and then when you want to sell.

I'd be seeking a reduction in price if you need to do remedial works to get building regs in place.
The sellers must have known that the lack of regs/certificate would come up, they would be stupid to think it won't have an effect, they either need to get the paperwork in place or reduce the price so you can do it.

We don't know for sure yet @LIZS
...the sellers are still insisting to the estate agents that it's all in place, but the searches are definitely negative. If it's only the final piece of paperwork it's less worrying, but the surveyor said the work wasnt of a high standard, which makes me think they didn't bother at all. Hopefully all will become clear next week.

OP do keep us posted how you get on. In terms of renting, if you have plenty of equity from the sale of your house, you could offer to pay any rent all up front? Therefore having low incomes becomes a non-issue. That's what we are doing. Good luck.

It is good (but strange) news! They have produced the certificate from the council signing off the work. So although for some reason it doesn't show up in searches, it appears that the work has been signed off. Great news, I wasnt looking forward to either renegotiating, or investigating and doing the work. Solicitors say it's nothing to worry about and it wouldn't affect any future sale.

Hmm, funny that! Glad you can proceed.

Cant quite believe this is happening...it turns out the certificate sent to us has nothing to do with the work we asked about. There is no building regs approval at all, as we thought right at the beginning. We were in the verge of exchange and completion before Christmas. I cant believe they thought they'd get away with this - they have lied right from the beginning! Including on the property info firm and including through their solicitors when asked about it specifically. We're on the verge of pulling out unless they offer a substantial reduction for us to be able to put it all right and looks like we'll be moving in with family in a couple of weeks.