[Ultimate Negotiation on House Inspection and Delivery] How to open a missing order so that the builder is willing to repair it? Teach you repair and warranty negotiation techniques to distinguish "major structural defects" from "minor defects"

Negotiation battlefield after home inspection: numerous deficiencies on the defect list

After purchasing a new or pre-sold house in the greater Taipei area, many homeowners will receive a "House Inspection Defect Report" compiled by the home inspection company or themselves, which lists dozens or even hundreds of deficiencies when completing the "preliminary inspection". Looking at the dense red letters on the report, homeowners often feel anxious. The most common excuse used by the builder's construction director or sales representative is: "These are just small scratches on the paint, or differences in the level of the tile joints. They do not affect the safety of living at all. We will help you repair it slowly after the house is handed over. Please sign the handover consent form today and authorize the bank to allocate funds." If the owner believes that he is serious and signs to hand over the house, the builder will often withdraw the work team directly after receiving the full purchase price and ignore the subsequent repairs. Therefore, how to rationally prioritize the missing items and stick to the "legal housing retention money" during negotiations is a negotiation strategy that homeowners must master.

Defect priority classification: major structural defects vs minor defects

When negotiating with builders, do not lump all defects together. Homeowners must divide the missing orders into two major priorities, and focus on requiring the builder to repair major defects first during the re-inspection:
Priority 1. Major defects (directly affecting public safety, structural life and legal principles of handover):
- Loose screws in the switch box, burnt switch without fuse, mismatch between main wire diameter and current, no ground wire in the socket or reversed polarity, and no anti-leakage protection in the bathroom socket.
- The floor drain or wash basin filling test is blocked, the pipe endoscope finds cement slag in the pipe, and the wall moisture content is greater than 10% (indicating a hidden leak in the water pipe or a leak in the exterior wall window frame).
- Shear cracks larger than 0.3mm and extending diagonally at a 45-degree angle appeared on the beams and columns.

Priority 2. General defects (does not affect the living function and can be improved during the warranty period after handover):
- Tiny stains on the paint, scratches on the wall, small scratches on the hardware accessories, uneven edges on the skirting boards, and uneven color of the tile joints.
- The slope of the floor is within 1/1500, and some single tiles are hollow.
Such deficiencies can be recorded on the deficiency note, and it is agreed that after the house is handed over, the builder’s after-sales service (warranty) team will complete it within a time limit. It should not be used as the only reason to withhold the entire final payment to avoid being sued for breach of contract by the builder.

Powerful negotiation mentality: make good use of the 5% retention money for time-limited improvements and appeals

At the negotiation site for the initial re-inspection, the homeowner should adhere to the following three negotiation steps to force the builder's engineering team to actively cooperate:
Step 1: Adhere to the statutory "deficiency deadline improvement cut-off document": During the negotiation, the builder's representative is required to clearly write down the "estimated completion date" of each major defect on the defect list and sign and stamp the company seal. Before completion, inform the bank in writing that "the payment of the 5% deposit for house delivery will be suspended."
Step 2: Use re-inspection as the only indicator for payment:Declare to the builder that the 5% balance payment (e.g. 1 million) is a bargaining chip for defect repair, and funding will only be authorized after "re-inspection and signature." In order to quickly recover up to millions of dollars, the builder will proactively dispatch core technicians to repair your house as a priority.
Step 3: Make good use of consumer protection complaints: If a builder’s representative threatens to “cancel the contract and confiscate the deposit if funding is not provided,” homeowners must not panic. This is an illegal threat. Immediately file a complaint with the consumer protection officer of each county and city government or the Land Affairs Section of the Public Works Bureau. The government will conduct an administrative interview with the builder, and the builder will compromise immediately.

Basic budget for defect appraisal and contract review in Shuangbei

For defect appeals and negotiations in Shuangbei area, the relevant professional appraisal and consulting budget is as follows:
* House inspection companies are usually included in the initial inspection fee, and the re-inspection attendance fee is about NT$ 3,000 to NT$ 5,000 / time.
* The cost is about NT$ 15,000 to NT$ 35,000 / time. This third-party association's report has extremely high evidentiary power in court.
* Completely free.

Business Acquisitions and Businessmen’s Long-term Asset Thinking: The Missing Order is Negotiating Leverage for CapEx Transfer and Maintenance Project Warranty

For real estate businessmen who specialize in buying old buildings, flipping resales or operating asset escrow in Shuangbei, During the acceptance period of the renovation project, merchants must closely integrate their own supervision team with the third-party home inspection report, issue strict defect orders to the construction contractors (plumbing, cement work, and carpentry), and withhold 10% of the "project retention money (warranty deposit)" according to the contract until the contractor repairs the defects. If a businessman rushes to sign off on the contractor's work because he is eager to remove the object, these hidden defects will emerge after the property is sold or rented, and the repair costs will be borne by the businessman's after-sales maintenance budget, directly eroding the net profit of the asset. Knowing how to make good use of missing orders and regulatory retention money to completely transfer CapEx costs to the construction contractor is the professional business leverage to ensure the internal rate of return (IRR) of real estate restructuring projects.