EICR Query

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    EICR Query

    Hi there,

    Please can someone assist me with a query?

    My Mother and Father are selling a residential rental property and due to complete on this soon. The Property is being sold with a sitting Tenant.

    The Buyer has been in touch with me asking whether or not the Property has had an EICR completed. My response was no - given that this only applies to new tenancies commencing from 01 July 2020, and that the current sitting Tenant started occupying the Property in January 2018. On that basis, our understanding is that there is no legal requirement to do this.

    However - the potential Buyer is adamant that we need to get this done and we must pay for this. Our argument back is that it is not legally required and therefore we do not want to incur the costs if not necessary/mandatory. We are now at a standstill - ideally, our Solicitors should be the ones advising us on this but both our Solicitor and the Potential Buyers Solicitor work part time.

    Please can anyone shed some light on this? Is my understanding of the Regulations correct?

    Many thanks

    #2
    Yes, it is.

    The buyer is trying to save themselves some money (and remove the risk of it failing and costing them money not you).
    It's a couple of hundred quid - I'd get it done.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Originally posted by jpkeates View Post
      Yes, it is.

      The buyer is trying to save themselves some money (and remove the risk of it failing and costing them money not you).
      It's a couple of hundred quid - I'd get it done.
      Thank you - I'll speak to my Mum and Dad - just to confirm though - are we legally required to do this? I'm reading that as though we are not but would be good to clarify.

      Comment


        #4
        Existing tenancies require it from 1st April 2021 so you are correct that you do not need one now.
        Personally I would probably have had the report carried out before trying to sell but it is up to you and your parents how you proceed from here.

        Comment


          #5
          Unless a new tenancy began since last June, your parents aren't legally required to do this as landlords.
          They would have to have one carried out if they continued as landlords after 1st April 2021.

          If I were buying a tenanted property, I'd want one in place before completing.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

          Comment


            #6
            I agree that legally you do not need to do this. It would be nice to be able to offer one to your buyers but my concern in your situation would be that the report may show up work that needs to be done and then your buyer will look to renegotiate the price.

            As a buyer, you should check the electrical installation out as part of your pre-buying checks - Surveyors often comment something like 'the installation looks ok but you should get it checked by an electrician'. I would be very wary of opening a can of worms that you don't need to.

            I would either stand my ground as 'not legally required' which might mean your buyer backs out or say they can pay for one themselves as part of their due diligence and keep your fingers crossed they don't find anything big!

            I would guess they are hoping to find something that will get them a discount on the price.

            Either way it might be better going through the solicitors as it will take the emotion out of it.

            Good luck

            Comment


              #7
              Originally posted by jpucng62 View Post
              I agree that legally you do not need to do this. It would be nice to be able to offer one to your buyers but my concern in your situation would be that the report may show up work that needs to be done and then your buyer will look to renegotiate the price.

              As a buyer, you should check the electrical installation out as part of your pre-buying checks - Surveyors often comment something like 'the installation looks ok but you should get it checked by an electrician'. I would be very wary of opening a can of worms that you don't need to.

              I would either stand my ground as 'not legally required' which might mean your buyer backs out or say they can pay for one themselves as part of their due diligence and keep your fingers crossed they don't find anything big!

              I would guess they are hoping to find something that will get them a discount on the price.

              Either way it might be better going through the solicitors as it will take the emotion out of it.

              Good luck
              Thank you for the advice! Will speak to my Parents and take it from there.

              Comment


                #8
                I think it depends on what you know of the current state of the electrics. If you think you're going to have to spend quite a lot to bring it up to the required standard, then obviously your buyer will be looking for you to either do that work before exchange of contracts or offer a reduction on the sale price so that they can get it done.

                Comment


                  #9
                  You, or your parents should join NRLA.

                  Comment


                    #10
                    ... if the sale doesn't go through that is!

                    Comment


                      #11
                      If you get an EICR it is classed as 'material information' by some insurance companies, in other words if the EICR shows the wiring is dangerous then you may be left with no insurance cover for electrical fires until you get it fixed

                      If the house has a sitting tenant how have you (or your parents) carried out your legal duty to ensure the electrics are safe and in proper working order?

                      Do you have functional and adequate smoke detector provision in the property?

                      Comment

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