No building regulations certificate

[Boosee]

Hello, we are in the process of buying a property but found out a few issues after LA searches came back. Retrospective planning permission was sought and approved for back and side extensions as neighbours complained about build. Owner also applied for building regs retrospectively as they didn't apply during the build. It didn't get signed off, so no certificate issued. Owner didn't disclose all this on property information form (TA6) sent to solicitor, we've found this out after digging around and asking lots of questions. They are claiming their dad sorted all this out for them at the time so they were unaware. We've pointed out to estate agent and solicitor that as the homeowner during the work, they are legally responsible and obliged to disclose information about the property, so this is not good enough. We've also asked EA why they don't ask their clients if they have necessary paperwork before valuing and marketing a property, but EA claiming it's not their responsibility and client didn't tell them.
After lots of phone calls to building control and insisting the owner pass on details of why no certificate was issued, we've finally received the BC surveyor's site visit notes. They visited 7 times, builder had no plans and no plans have ever been submitted even after the council requested them, so certificate couldn't be issued. Numerous defects found re. DPC, drainage, roof and other things, original back extension had to be demolished and rebuilt, but was not signed off. We told EA we need to get more info on what it will cost us to obtain retrospective BR and carry out remedial work as seller is unwilling to do it and won't accept lower offer. We are trying to speak to surveyor who carried inspections as well, but they are on leave. The seller got a structural engineer to check structure and theirbreport states build is fine but this won't be enough to get BR certificate as other issues were identified which are outside remit of structural engineer. EA tried to brush it off and say we can get indemnity insurance however, in this case, it won't be valid as council received the BR application at the time and are aware of the issues. Can anyone with legal expertise shine any light on indemnity insurance in this case?
We will also be reporting EA to trading standards as they marketed property as extended four bed property without checking client had necessary paperwork and just accepted that she didn't know. So easy for EA to distance themselves now and state they are not responsible if client doesn't disclose anything to them, but they should be advising their clients to have everything in place when they take on a property to avoid issues later on.
Sorry for long post!

I believe that’s correct now the council are aware you cannot get indemnity. I know you’ve paid out money on this transaction but I would be looking for another property. Long term it could be the cheaper option.

Do you really want this house with all the defects ?
Indemnity is waste of time. I can't see what you would be indemnify against.

Walk away. The seller won't reduce the price and will simply sell to someone else who isn't bothered/doesn't understand the problems!

I have bought a few houses with indemnity and in general part of the terms is that you don't tell anyone.

So as the council are aware then an indemnity policy is not a possible solution,

It isn't the estate agent's responsibility to check this sort of stuff it is the responsibility of the buyer and the buyer's solicitor.

No you cant get indemnities for something you have already flagged as a problem!

OP you're going to either take it or leave it, you might want to revise your price if you can calculate what it will cost to re do the work but theres no point going after this plan, that plan, this paperwork, that paperwork, it obviously doesnt exist, you're litterally going to have to buy it as it is, 'sold as seen'

Or move on and find something else

It seems to me, you have tried hard, and been very reasonable in your approach to trying to find a solution to the sellers issues. Both the seller and their agent have been zero help. I couldn't see a way to continue to carry on with the purchase if it were me. Good luck whatever you decide.

Avoid! If ever there were a procession of red lights, what you have described is them.
The other parties have done nothing to help, because they know full well they are trying to sell a lemon.
To proceed would put you in financial jeopardy, and you’d never sleep soundly. You’d also be faced with the same issues if you needed to sell it. Find another house.

Aren't houses sold with the understanding that the solicitor does the searches and it's caveat emptor?
Estate agents go on what their client (the seller) tells them. You don't pay anything to the estate agent it comes out of the sellers fees, so they are working for the seller. If the vendor isn't moving then just walk away. You don't want a property which is uninsurable, or going to be a money pit. Irritating, definitely, but apart from giving yourself a load of extra work and strife you won't get away where with the agent or the vendor. Buying property is an absolute nightmare, but no amount of foot stamping is going to help (although I completely understand why you're pissed about it).

You will never relax and fully enjoy the house and it will be a challenge to sell. Each little thing will annoy you, there will be other shortcuts they have taken which you don't yet know about. Indemnity insurance won't cover you because the council already know about it. Cut your losses and move on.

I don't believe it's the estate agents responsibility to check they have the paperwork. They check the identity of the seller but that's it. After that it's the (your) solicitor's job to check with sellers' about the necessary certificates, and if they can't produce any that has nothing to do with the estate agent.
Retrospective BC is hard to obtain as they can't see what supports were used (or foundations). I'd walk away from this one - sounds like there are flaws that haven't been remedied and you will have the same issues upon selling in the future. Indemnity is worth little in this case.

Walk, too many unknowns and no reduction in price.

The EA is covered by their T&C, their obligations are virtually zero.

I’d walk away from this one, OP. But don’t go after the EA: it really is not their responsibility to check this. That’s what conveyancers are for.

It’s not the ea’s job to do that op. There is no point in reporting, the documentation search is for your solicitor. Agents sell and market the property, they even put an override usually on adverts, they don’t validate all paperwork is in place.

personalky I’d walk away.

I’d walk away. I looked at a lovely house that had no building regs sign off and after doing some research it seemed too much hassle. retrospective approval is very difficult as the things that need to be checked will now be covered up and checks need to be done at early stage of construction when things are visible.
I was also concerned that if I bought it and then couldn’t get approval then it would be very difficult to sell in future.

This. ^ It’s not the EA’s responsibility to make sure all paperwork and regs are in place before a property is marketed. That’s why you have conveyancing solicitors.

I’d walk away. It sounds like it could end up being a money pit.

I also feel that any solicitor I have ever used for a property purchase (four, in three different jurisdictions) would advise me very strongly against going ahead or even refuse to act for me in these circumstances. I suppose there are threemajor factors to consider. First, the chance of it falling down - how long ago was the work done? Second, the value of your investment - fragile, if you ever wanted to realise the money you have spent and particularly if you need a mortgage: do you need one and would you even get one if it lacks all this paperwork? And thirdly: is this a 'forever' house and even then would you like to see it as an asset to pass on to DCs? Because if you wanted to sell it you would struggle.

As my granny likes to say, don't make someone else's massive problem your massive problem and let them run off laughing.

Walk away. Councils don't refuse building reg sign off without good reason

It would be a different story if they never applied for BR but the fact they have and it was refused would seriously put me off, I would walk away or expect a hefty discount.
Hopefully they don't pull the wool over the eyes of the next buyer.

What about the lender ? Would they agree to something like this ? I am in the same situation but I am the seller and willing to reduce the price

Too many risks. Avoid. DM me if you want full chapter and verse.

If you really want the house then maybe you should present the sellers with an ultimatum: in view of the issues identified you will only proceed if they drop the price by, say £50k. Give them a week to agree, and walk away if they don't.

I know it’s not the EA’s responsibility to check if regulations are applied for & valid, I do wish this is how property buying /selling would work instead of getting so far down the line, in terms of cost & input, only for it to be discovered via conveyancing at what feels like the end of the process.