If a Contract is subject to a building and pest inspection, a purchaser must take all reasonable steps to obtain at least one report and engage licenced inspectors. A purchaser cannot terminate a Contract under this clause if they have a friend or relative who is not a licenced inspector review the property.
In the case of purchasing a house, the report may relate to the land, the house and any included chattels (including building structures, sewerage and waste water treatment facilities, hot water systems and retaining walls which may need repair or replacement).
If you are purchasing a unit or townhouse in a Community Title Scheme, under the Contract for Residential Lots in a Community Titles Scheme the report must relate to the unit or lot itself. Importantly, you cannot terminate a Contract under this clause for defects to common property. If the Contract has not yet been signed, you may wish to instruct us to request extending the clause’s effect to cover inspecting any larger structure containing the lot and the common property of the scheme. If you have signed the contract, you may still have rights to terminate under section 224 of the Body Corporate and Community Management Act 1997 for breach of an implied warranty in relation to latent and patent defects.
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 – the seller is entitled to request a copy of the reports and you must provide them without delay
• you may attempt to negotiate with the seller in relation to a price reduction or for works to be carried out – the seller is under no obligation to negotiate.
If you are successful in negotiating a price reduction, it is important that you notify your lender as soon as possible as this may affect your existing finance approval. Any agreed price reduction also does not necessarily reduce your transfer duty obligations under the Contract.
If we do not notify the seller in writing before 5:00pm on the inspection date of satisfaction, waiver or dissatisfaction, the Contract continues and both you and the seller have a right to terminate.