Buyer asking for further reduction due to current situation?

by Readers Question

9:50 AM, 18th May 2020
About 7 months ago

Buyer asking for further reduction due to current situation?

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Buyer asking for further reduction due to current situation?

Just before the pandemic we had an offer for a Leasehold Maisonette which we advertised and we accepted a reduced offer. Since then he has asked for a further reduction of 5K due to the uncertainty of the current market promising to exchange contracts without any delay.

We had the boiler replaced in 2013 for which we have not documentation as the Engineer did not provide these to us. This has not been registered with Gas Safe and Bldg. Regs which we told him at the beginning. Now he is asking us to take out an indemnity policy for this old boiler. We have been servicing the boiler every year and have Gas Safe certificates which we have given him.

The freeholder of the property is the Council who is proposing to do some repairs on the roofs etc. in the near future and has informed us that they are seeking contracts for this work which will last for 4 years. The buyer now wants us to agree to pay 50% of the amount payable when this work is carried out after we sell the property as he is not comfortable inheriting this liability.

He has asked for a further reduction in price by another 2K or withhold 2K in escrow by the solicitors. Because of the current situation we are of the opinion that this work will be put on hold for the foreseeable future. Would like to have some advice as to whether this is a reasonable request as we feel it is the buyers responsibility to bear the cost of any future repairs once he owns the property.

Any advice on this will be greatly appreciated.

LJ


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Comments

Puzzler

20:24 PM, 23rd May 2020
About 6 months ago

You might check whether the retention is something his lender has requested, this used to be commonplace but not so much now. I have only ever come across it in houses not flats where there was work required such that the lender was not prepared to lend the full amount until the work was done. It usually applied to residential mortgages as B2L generally require the property to be lettable immediately

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