ᐅ Construction defects – Condominium – Is a price reduction possible? How much?
Created on: 21 Aug 2014 16:48
B
baubert333
The situation is as follows:
* Purchase and construction of a new 4-room approximately 90 sqm (970 sq ft) condominium from a developer
* Construction went quite well, and communication with the developer was good
* For example, completion was delayed by 8 weeks; the developer communicated this 6 months in advance and was willing without any issues to accept a price reduction equivalent to 2 months’ rent, etc.
* All local tradesmen were used, some of whom I had already hired for my own house
* The developer is a well-known local company, actively involved in clubs (also personally), with a good reputation, considered a “Mercedes” brand, so somewhat more expensive, which I was aware of and willing to pay for
At handover, the following defects were noted:
1) Some sockets in the hallway and storage room are not on the circuit breaker for the hallway/storage room but instead on the living room’s circuit breaker. I have checked the situation and I am 100% sure that this cannot be fixed without major work. Breaking up the floor or walls to fix this is out of the question for me. The electrician’s assessment is still pending (he is currently on vacation), but I am confident it cannot be resolved.
2) The building specification states “underfloor heating with a thermostat in every room” (I don't remember the exact wording). Now we have discovered that the guest WC does not have a separate underfloor heating system but shares it with the hallway.
Both points are included in the handover report, and the site manager who carried out the handover did not object strongly. We agreed that I would discuss the next steps with his supervisor.
Neither issue is a major problem, but I do not want to accept everything without question. Plus, what is stated in the building specification should be delivered.
I am not keen on insisting on correction of these defects, as both would require major work. Also, the tenant might move in later or reduce rent, adding more stress. I assume the developer sees it similarly, as they want their final payment and then to be done.
Can I expect that these two points will lead to a reduction in the purchase price?
How much could such a reduction reasonably be?
Or is it absolutely necessary to involve an independent expert? I am reluctant to do that as it means additional time, effort, cost, and surely stress with the developer. So far, the developer has been cooperative. Therefore, I assume they will agree to a price reduction.
What do the experts say?
* Purchase and construction of a new 4-room approximately 90 sqm (970 sq ft) condominium from a developer
* Construction went quite well, and communication with the developer was good
* For example, completion was delayed by 8 weeks; the developer communicated this 6 months in advance and was willing without any issues to accept a price reduction equivalent to 2 months’ rent, etc.
* All local tradesmen were used, some of whom I had already hired for my own house
* The developer is a well-known local company, actively involved in clubs (also personally), with a good reputation, considered a “Mercedes” brand, so somewhat more expensive, which I was aware of and willing to pay for
At handover, the following defects were noted:
1) Some sockets in the hallway and storage room are not on the circuit breaker for the hallway/storage room but instead on the living room’s circuit breaker. I have checked the situation and I am 100% sure that this cannot be fixed without major work. Breaking up the floor or walls to fix this is out of the question for me. The electrician’s assessment is still pending (he is currently on vacation), but I am confident it cannot be resolved.
2) The building specification states “underfloor heating with a thermostat in every room” (I don't remember the exact wording). Now we have discovered that the guest WC does not have a separate underfloor heating system but shares it with the hallway.
Both points are included in the handover report, and the site manager who carried out the handover did not object strongly. We agreed that I would discuss the next steps with his supervisor.
Neither issue is a major problem, but I do not want to accept everything without question. Plus, what is stated in the building specification should be delivered.
I am not keen on insisting on correction of these defects, as both would require major work. Also, the tenant might move in later or reduce rent, adding more stress. I assume the developer sees it similarly, as they want their final payment and then to be done.
Can I expect that these two points will lead to a reduction in the purchase price?
How much could such a reduction reasonably be?
Or is it absolutely necessary to involve an independent expert? I am reluctant to do that as it means additional time, effort, cost, and surely stress with the developer. So far, the developer has been cooperative. Therefore, I assume they will agree to a price reduction.
What do the experts say?
nordanney schrieb:
The guest toilet will be heated anyway, there’s no way to avoid that. So you won’t save any heating costs — therefore, the thermostat is also irrelevant.
What nonsense. If I order something, I want to receive it. A car without a radio still runs, but it’s still a defect.
D
Doc.Schnaggls25 Aug 2014 10:45I would also suggest taking a calm approach at first. Of course, the points mentioned should be considered deviations from the construction specification, but they don’t necessarily fall into the category of a "disaster."
Wait and see how the developer responds. The big hammer can always be used later, although in this case, in my opinion, that might be a bit of an overreaction.
I suspect that, based on your previous experience with the company, you will likely reach an agreement.
Best regards,
Dirk
Wait and see how the developer responds. The big hammer can always be used later, although in this case, in my opinion, that might be a bit of an overreaction.
I suspect that, based on your previous experience with the company, you will likely reach an agreement.
Best regards,
Dirk
N
nordanney25 Aug 2014 11:48Wastl schrieb:
That’s nonsense. If I ordered something, I want to receive it. A car can run without a radio, but it’s still a defect. A defect, yes, but a very minor one.
By the way, the comparison with the car is not quite appropriate. A better example would be a car radio that, for instance, doesn’t receive a particular station like wdr4—annoying, but not a serious issue.
Similar topics