How to negotiate under building and pest condition?
What is "subject to Building and Pest Inspection" condition?
In Australia, buyers have to make a formal offer to purchase a property. During this offer, you are asked to sign a contract and make a deposit. To protect the buyers, this contract is made with a “subject to building and pest inspection” by the conveyancer. This condition becomes more important if you are buying an old property.
The expiry of this condition is usually within 1-3 weeks from the signing date. It protects the buyers in case major defects are found during the building and pest inspection. Basically “building and pest condition” empowers you to hire a professional building inspector to conduct a detailed inspection of the property. The condition provides you the right to withdraw from the contract if you are not satisfied with the finding of the inspection. The withdrawal from the contract depends on the severity and quantity of defects and if the defects are major or minor.
How to identify minor or major defects?
According to the Australian Standard for building inspection, one of the primary objectives of the building and pest inspection is to identify minor and major defects. The building inspector will detect any major defects that can affect the condition of the property. The report will contain all the details about the major defects such as the location of the defect, the effect of the defect, and the reason for categorizing it as a major defect. Some of the examples of major defects are structural defects, water damage, subsidence, termite infestation, etc. The building and pest inspector also identifies every minor defect and lists it in the final inspection report.
Negotiating under the Building and Pest Condition
After the building inspection report reveals all the minor and major defects in the property, the seller is not under any obligation to repair the defects and the buyer has only right to cancel the contract.
However buyer and seller can consider to renegotiate the contract on the basis of the building inspection report. you may ask the seller to fix all the defects or some of the major defects. The other option is to lower the price of the property. All the changes in the contract should be recorded in writing and should happen before the last date of the condition.
Building Inspection Council advises that property inspection should be carried out as soon as possible giving you enough time to consider your decision before the deadline. Also the buyers should be reasonable when making the decision, especially if buying an old property. The building inspection report does not give you one side right to terminate the contract and there should be good enough reasons to terminate it.
Get Free Quotes From Qualified building Inspectors?
Building Inspection Council is not-for-profit community service. We provide free quotes from the qualified building inspectors of your area for you to negotiate under the building and pest inspection condition. you will save $104.7 on average as compare to the average market price. As we are a not-for-profit organization, we do not have to compromise for the profit and you get the best service at the lowest rates. FOR FREE QUOTES, CLICK HERE.
15 top building defects found during building Inspection According to research done by choice.com.au, the following are the 15 most common building defects found in
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