People are buying properties and allowing the sellor to complete on their behalf. The seller has a conflict of interests and cannot represent his own and your interests. This effect of this is your interests are the ones that will suffer. The attached is a letter written to a client who asked us to complete on a property for him 2 weeks ago as an example.


Dear ..................


On 16th May ............ examined the property which you have entered a pre-contract on at ............................and examined it on your behalf.


Upon examination of the property he found the following contractual and actual defects.


1. When checking the cadasre (Deed) with the pre-contract signed by you he found that the property is not the size you contracted for but 5.56 meters smaller. The pre-contract allows for only a 5% vaiance where in fact this is an 8.45% variance.



In relation to the property the build quality is acceptable but there were several minor vices identified which we would advise being rectified before you would take receipt, as you have contracted for these to be done to an acceptable standard which they are not.


Common Area.


This has still not been tiled, nor has it been painted. Admittedly the constructor says he is in the process of doing, but if he does not you have little recourse.
(Please see image 1,2 & 3)



Enterance Hall.

Interphone is not connected.


Living Room


The room needs to be painted again. There are streaks in the paint and it looks as if it has only received one coating where 2 were necessary or will be necessar.

The skirting board is not flush with the floor and the joints have been cut facing line of sight and not away from.

Light switch is not straight and looks unsightly.

(Please see image 4, 5,, 6, & 7)


Bedroom

The floor in the bedroom has expanded with effect it is slightly raised in a bubble and the the door now scrapes it when you are opening it. This needs to be rectified otherwise there will be scores on the floor which will be unsightly.

Skirting board is again not straight.

Paint work similar to living room and needs further coat.
(Please see image 8 & 9)

Bathroom


The sink has been set in place and nothing to secure it other than its own weight. This needs to be attached.


Panel on side of bath is cracked where it was screwed in to tight.

(Please see image 11 & 12)

Kitchen


Extractor fan not working.

No 'U' bend in sink disosal system.

Kitchen units not staight with floor and 2cm gap at rear. (Please see pic )


(Please see image 13 & 14)


All defects are minor and can be rectified however, we would want these done pre-contract and not have to try to do after for obvious reasons. We have submitted our report to the developer for complaince.

However, there is the issue of the variance in size and would like to know what your instructions on this as this has a direct effect on the price you are paying per meter. Obviously we would not be willing to fufill your contractujal obligations on a lesser size as this will have a direct liability on us for negligence and not looking after your best interests.

My suggestion is to renotiate the purchase price to your satisfaction otherwise go for breach of contract.


Yours Sincerly



...................................



This is an example of a fairly standard snagging list record and the client was able to have defects and contractual aspects rectified before contract. However, had they been discovered after contract the size variance would have allowed no recourse and the defects necessatating good patience on the buyers behalf.


These are the reasons that due dilligence is needed. You as readers will not accept a 2nd hand car without pre checks so why would you accept a property without such checks?



David Howe
Investment Romania - Property Romania, Invest Romania, Investment Romania

You re perfectly right !
I'm buying in sozopol and I've asked for a snagging and it has been really useful !
At least to know how silly I've been in buying offplan !

Buying off plan is not silly, not carrying out proper due dilligence of using gangsters as agents is.


Unfortunately people assume like the picture they are shown that everything is ideal. It rarely is.

An old man who used to live beside me shared some words of wisdom with me once and I never forgot them.


Never assume son, if you break the word down you get 3 words and in the process you make an ass of u and an ass of me


Ass-u-me


An exmple of this is a clause shown to me today.


As long as the utilities are not provided in definitive form on the handing-over date, .................................... will provide temporary solutions, which cost will be supported by the beneficiary.”


Therefore to put it in laymans terms, you will not have direct access to the sewage sytem and will have to pay for the manual removal of all sewage from the property and subsequent connection to main sewage should this ever become a possibility and at what ever cost.


Does the ordinary 5'8'' when buying property assume anything other than when he flushes the toilet that he will not have to go later and have it taken away, or pay another a tidy sum for removing his ..................?

You are right, the problem is when you think that people is correct as you are correct.
And realize after that for money they could do anything and you read and re-read the same line finding always bad.....

This Post is to important for people not to be reading it. I cannot stress strongly enouh o independant inspections on all developments for persons buying.

David Howe LLB. LLM


INVESTMENT ROMANIA - Investment in Romanaia, Property management, Due diligence, Renting in Romania

I will certainly take your advice on this and try to pass it on to as many other people as possible. I think too often people read these forums when it is too late to act.

Please do! to many people have given free Power of Attorney's to persons with a conflict of interest in them closing the contract. Some of the legal terms and obligations we have come across are an absolute disgrace and negae investment. Agents who have these power of attorneys are only interested in closing the sale without consideration for the investors interests.

People buying overseas properties must have someone independant monitoring their interests, not someone with a beneficial interest in commission from their contract!!!!!



David Howe LLB. LLM

INVESTMENT ROMANIA - Investment in Romanaia, Property management, Due diligence, Renting in Romania