If the contract is subject to satisfactory building and pest inspection reports you must take all reasonable steps to obtain the reports – although you may elect to only obtain one of the reports. You must use licensed inspectors for the reports and the reports must be in writing, otherwise you will not be able to terminate the contract on the grounds that you are not satisfied with the building or pest inspection. You should provide us with a copy of the building and pest reports.
We must give written notice to the seller’s lawyers on or before 5:00pm on the inspection date as to whether you are not satisfied with your building and pest reports and wish to terminate the contract.
If you do not have a report by the inspection date you can instruct us to seek an extension, however, the seller may not agree to the extension.
If you are satisfied with the report, you should instruct us to give notice to the seller that the building and pest condition is satisfied.
If, acting reasonably, you are not satisfied with the results of the building and pest reports then you may instruct us to terminate the contract by giving notice before 5pm on the inspection date. If either of the reports contain issues that are not satisfactory to you, contact us as soon as possible to discuss whether you would be ‘acting reasonably’ if you terminated the contract in the circumstances.
If the lot you are purchasing is a lot in a Community Titles Scheme, the reports must relate to the lot itself. If the contract has not yet been signed, you may wish to instruct us to request extending the effect of the building and pest inspection clause in the contract to cover any larger structure containing the lot and the common property of the scheme.
If you terminate the contract, the seller is entitled to request a copy of the reports from you and you must provide them without delay.
Your other option is to waive the benefit of the condition in which case the contract will no longer be subject to this condition and you will be obliged to complete the contract. In either of these cases, you do not have any recourse against the seller under this condition for issues which are raised in the building and pest reports.
If you do not instruct us to give a notice to the seller before 5:00pm on the inspection date, the contract continues and both you and the seller have a right to terminate. You can also give notice that you have received a satisfactory report or alternatively elect to waive the benefit of the building and pest condition.
If you decide to waive the benefit of the building and pest condition you must instruct us to give notice to the seller, as your waiver will not be effective unless notice of waiver is received by the seller before the seller terminates the contract.
There are no rights to terminate for unapproved structures in the contract, unless a show cause or enforcement order exists.
Our recommendations are below:
Building and Pest Inspectors
Phone: 0400 468 046 or 4779 6200
Phone: 0499 987 588