Good day forumers,

I'm having a huge issue with a subsale property which I'm close to finalizing. I've bought a unit of really old house at a relatively competitive pricing, which however, unfortunately, might have suffered from termite infestation which I'm not aware of previously when I had a look at the house. My current stage is only at, downpayment of 2% to the agent for now, not yet fully finalized the loans and SPA.

Biggest concern is with in regards to the roofing (not sure how much damage has the termite caused). For me, the biggest issue is that I'm not aware of the termite issue until I had another look just yesterday or so.

From my point of view,

1. I'm appointing a pest control expert, and some contractor(s) to determine the total extent of damage and if it's minor, proceed to complete the deal
2. Determine the damage, and try to re-negotiate a more acceptable price with the owners?
3. Can I cancel the purchase and obtain the 2% back from the agent?

Thus, I'm wondering what're my options. Any advise from you guys are very much appreciated.

Thanks!

is it stated in any documents about the refund?

investment or self staying?

usually cancellation by buyer side cannot refund... But if you have add in any terms in the booking form then it should not be a problem.

I suggest you ask around price of replacing the roof and ceiling at once...

I think the statement is quite standard, it goes in regards to the execution

a) The purchase hereby undertakes to execute the SPA within 14 (fourteen) working days ("Said Period"_ from the date of acceptance of this offer by the Vendor (provided that there is no delay on the part of the Vendor or Vendor's lawyer in agreeing to the terms and conditions of the SPA) failing which the said Earnest Deposit shall be forfeited by the Vendor as agreed liquidated damages PROVIDED ALWAYS that the non-execution by the Purchaser is not caused or attributable to the Vendor's misrepresentation, misconduct and/or fraudulent acts. Thereinafter this agreement shall be terminated and be null and void and neither party shall have any further claims against each other.

There's a part b), but it basically details the execution failure by the Vendor.

If the condition is really very bad (depending on feedback from the pest control expert and also another contractor), then I will very likely claim misrepresentation, but here's where I wish a legal expert person could advise me, in such a situation, whether this is really "misrepresentation"

At the time of signing, we were not made aware of the fact that it was infested by termites previously, and I presumed that there was a major hole in the ceiling (which I've made my concern verbal to the agent) was probably due a major leakage. That in turn, turned out to be a wrong assumption, as I later on, after another closer inspection of the house, noticed that the hole was in fact caused by termites problem. The agent then explained that the termites should've been eradicated 1-2 months earlier where the Vendor engaged a pest control company to do so.

self staying. The idea was to buy a good location, but an older unit (screw the condition, planned to renovate). We however, weren't prepared/expected to have a major roof (termite issue) problem with the unit we were planning to purchase. (Else, might blow the budget, if we have to replace the entire roof)

The only additional condition we added was for it to be subject to loan approval. Initially, we wanted to put in a second condition of pending an inspection of the house, but the agent was very adamant against putting that condition into it, for she's very concerned with the deal failing to go through if we put in that deal.

Asking, will be getting a contractor to check it again tomorrow, but from our last advise from another contractor, he was quoting 50k-60k

Single storey house or double storey house?

Double storey

when u buy subsale, it is "as is where is". the privilege is yrs to inspect with experts and pay deposit only when u are satisfied 100%. if u did not do that, u can't blame anyone.

see, a buyer can put 100 conditions incl termites and crocodiles, h1n1, but no seller give accept.

yr case, i see either you accept as it is or stand to lose yr deposit.

there are things in life u learn by mistake if u had not been careful - if the mistake is yrs and yrs alone.

sorry not being helpful, just being realistic.

Hi AVFAN, duly noted, and lots of thanks on the insight.

I wanted to add however, that shouldn't the agent have informed me about the termite issue, since she was previously informed by the owner that he had to obtain termite removal service before?

This post has been edited by rivacordex: Mar 26 2013, 08:33 PM

I also think you cannot get back your deposit. Since the default is in your side not the owner.

suck the termite issue up or loose the Depo, you did not do your dd good enough.

there is always a price to learn.

What you can do now is to access new roof cost vs 2% depo, which one is more heart breaking, then you decide.

since you are looking for old houses in good location, screw the condition and plan for renovation anyhow; why roof replacement is not in your budget? You may even want to factor in wet work in your budget as water pipe could be rusty and leaking, are you going to blame the agent for not telling you this?

If this house got termite issue on the roof, high possibility the other houses in the same area also got infested. Something you can't avoid if you really want a house in that location.

Sorry of being harsh, but that's the facts of life.

KLsooner: I agree with you in regards to most of the things you mentioned, except for the roof.

We unfortunately didn't plan for the roof replacement. I have indeed factored in the wet works, water pipes, etc, thus am not complaining about the rest of the condition. Usually, subsale from what I've known, you don't have to fix the roof (or at worst, minor / major leakage which can be sealed, fixing some rafters etc. which is minimal). I reckon that if there has been termite infestation that has occurred, it would be a good heads up if informed as well as part of the deal, especially the roof which is something you don't really inspect when you look at a house, and you can almost never fully assess the full extent of termite infestation damage.

However, it certainly is starting to be a very expensive lesson. I'm considering the cost of changing / replacing of the roof in now, and see how my decisions goes.

One last thing, can I just know, if anybody else is a subject expert on what happens to the 2% depo which gets forfeited?

Thanks.

I've gotten an assessment of damage of the roof, and it's 3 out of 5 major beams which were affected, whilst 1 is affected very badly. One of the support item is also affected and dilapidated whilst I have up to 8 rafters which are problematic will need changing.

I'm getting various quotes from contractors for the replacing of the roof truss, which ranges very widely, from 20k (and slightly less) all the way to 50k-60k (and above for metal truss).

hi bro.

for your case,

please look up at KPKT.

they can help you with this.

pm me if you need more info.

i recently had a similar experience...was also asking about the 2 % deposit whether refundable or not...unfortunately unless u state it clearly in the booking form for refund in cases like this, they are not liable to refund any of ur deposit paid.

Okies, thanks guys for answering most of the stuffs, which I needed to know.

BTW, still wondering who does the 2% deposit go to in the mean time? Part of it goes to owner and part of it agent??

Agent fee...

Cheer up, you ain't that bad compared to those "rich waterfish" that loose their 2-3%depo in their quest to own a DPC prop. These people were shown the "Toyota hilux" when realised approved bank loan is some half a mil away from selling price and can't fork out so much hard cash before S&P but to forfeit the depo.

Agents are legally right not to tell everything about the prop but morally wrong from hiding the facts from you.

I suggest you take up the unit at least you do some favour to future victim la, chek some yam tuk, good for you and your family.

If you have a banker friend. Ask him to issue you a reject letter for loan. Problem solved.

Resolved this end of March.

The agent found another buyer within 2 weeks time, and was very thankful to the agent for getting me out of the situation. I suppose, the price is still attractive enough for its location.

Am much happier with a new place I bought instead. Thanks for all the advise, and much wiser with termite situations.

Closing topic.