Page 2 - Common Problems Encountered When Selling

Common Problems Encountered When Selling

If anybody has bought and sold a house recently they will probably know that quite often any problems
encountered when trying to negotiate the contract between the buyer and seller arise from practical issues rather
than a legal issue. This article will look at some common practical problems which have to be dealt with by our
conveyancing team.

Unauthorised Alterations
The Home Report or survey report obtained by the buyer will detail any alterations carried out to the property. If
the report advises of any alterations the buyer’s agents will insist that the appropriate consents have been

obtained under the Building Regulations. It depends on the nature of the alterations as to what consents are
needed. If the alterations are relatively minor the buyer will probably only be looking for a building warrant and
completion certificate to be in place. If the alterations are on a larger scale, then in addition to building warrant
and completion certificate, planning permission may also have been required. . There is also an added
complication if the property is listed as listed building consent will also be required.

If the seller can produce all the necessary building consents then all is well and good and the contract will be able
to proceed without any delays, but what happens if the correct documentation has not been obtained? In this
situation the seller will have to apply to the appropriate local council or approved architect’s firm to obtain a
“Letter of Comfort.” The cost of this application differs from area to area. . Once the application has been

received a building control officer or architect will visit the property to investigate the alterations which have been
carried out. Hopefully after this visit it will be obvious that the alterations conformed to regulations even although
no consents were obtained. In those circumstances a” Letter of Comfort” will be issued – allowing the sale to
proceed.

Unfortunately sometimes the alterations do not comply with building regulations. In this instance a report will be
received detailing what requires to be done to the property to allow a Letter of Comfort to be issued. In this

scenario the buyer and seller have to agree on what should happen next.

The first option is that Seller will be responsible for making the necessary renovations to the property to bring it
up to scratch. If the changes have not been completed by the date of entry then the move does not necessarily
have to be delayed. The buyer could make retention from the purchase price until such time as the Letter of
Comfort is received from the seller. The amount of retention should cover the approximate expected costs of
making the alterations compliant.

The second option that could be agreed is that the purchase price will be reduced, on the proviso that the buyer
will be solely responsible for remedying the alterations to bring them in line with building regulations. Obviously
the reduction in the purchase price should reflect the likely costs the buyer will incur in doing this.

Of course it is always open to the buyer to withdraw from the purchase completely. For example an extension to
a listed building may be required to be pulled down and re-built. The buyer may very likely decide not to proceed.

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