At Creevey Russell we have noticed a common misunderstanding held by Buyers when it comes to Building and Pest inspections, and we are sure you have come across the same. Buyers often think they can terminate a contract if a Building and Pest inspection report identifies the smallest of issues. However, we know it’s more so substantive issues such as termites or structural failings, not that of cosmetic issues like broken tiles or rusted gutters that provide the buyer grounds for termination.
We should remind our buyers that they must act “reasonably” when considering terminating based on the Building and Pest inspection, and there is no requirement of the seller to renegotiate once that contract is signed. We try to combat this issue by suggesting the addition of a due diligence special condition, allowing the buyer full discretion to consider everything the property has to offer which should get the sale over the line.
If you are interested in talking to us about pre-contractual advice and/or conveyancing, call us on (07) 3009 6555.