There has been a misconception in the industry that obtaining a building and pest inspection on a property you are considering buying is a mandatory step in the purchase process. Building & pest inspections are essential but not mandatory.
This claim is actually a misnomer–Yes, there is a standard clause in the Real Estate Institute of Queensland (REIQ) Contract of Sale but this does not mean it has to be followed through or taken up.
The reality is that you would be a fool or have very deep pockets if you did not consider this relatively inexpensive step essential and follow through with the sound advice of obtaining a building and pest inspection.
You Can Use the Report to Renegotiate the Contact
If you have heard that using the negative results of a building and pest report to renegotiate the terms of your Contract of Sale, we are sorry to say that this is also a misnomer.
The only thing you can do, should you find your dream property has woodworm, termites, wood rot or extensive structural damage, is to terminate the Contract of Sale.
You cannot use any of this information to force the property owner to your will and demand repairs be conducted or demand a reduction in the agreed purchase price.
This is not to say that the property owner may not be amenable to making good any damages or even renegotiating the sale price.
It’s All in the Wording of the Special Clause
Using words such as “the right to negotiate” should be included in any such special clause.
This also applies should a purchaser conduct their due diligence and discover that any additions to the property such as sheds, swimming pools, patios or carports do not hold the appropriate council approvals.
A purchaser will have no right to cancel the contract of sale unless the discovery of such things is made a clear condition on the Contract of Sale.
We would like to point out that discovering that a home has a broken door handle is not grounds for termination of a Contract of Sale.
Don’t Feel Rushed
Often, when you discover what you believe to be that hidden gem amongst the many homes you have trudged through, you may feel that you can overcome any issues that may arise.
Keep your cool and continue with your due diligence. A comprehensive building and pest inspection from Bob Gunn Termite Solutions can be obtained quickly and easily.