Hi all, I have been learning from these forums for a long time now and am finally at the stage of purchasing my first home but need some advice.
I have signed a standard REIQ contract and was wanting to know if anyone has had problems terminating due to a building/pest inspection as I didnt include any special clauses of my own.
The house needs a bit of work but to me looks all cosmetic but am affraid the inspection may turn up alot more than I am willing to take on. Reading the REIQ contract it states that the contract can be terminated by the buyer if the inspectors report is unsatisfactory to the buyer. The buyer must act reasonably.
Also, when should I get the inspection done, as soon as I am bound to the contract in case I cannot get out of contract with inspection clause and make use of the cooling off period or wait closer to the 14 days stated on the contract in case finance isnt approved?
Thanks in advance.
I certainly would not suggest you use the 5 day Cooling Off period on a standard Qld Contract to terminate the deal unless you are confortable in loosing 0.25% of the purchase price which the Vendor will be entitled to.
The Contract should be subject to finance and a Building Inspection and if these are not acceptable to you the Contract can be terminated using either of these conditions without any penalty.
Richard Taylor | Australia's leading private lender
I agree with Richard on the cooling off period, you will lose a few bucks, however if you have also left the building and pest inspection part of the contract – fourth one down on page 6 of the the contract if a unit, page four if a house – or you haven't inserted a special condition clause regarding B&P inspections then not much you can do about it. It is my understanding if all three parts of the B&P clause are not filled in then a seller could really enforce the contract.
I always advise my clients to wait until the finance is approved before getting the B&P done, simply because at around $400 you don't want to outlay the money if your finance is not approved.
Results1 wrote:I agree with Richard on the cooling off period, you will lose a few bucks, however if you have also left the building and pest inspection part of the contract – fourth one down on page 6 of the the contract if a unit, page four if a house – or you haven't inserted a special condition clause regarding B&P inspections then not much you can do about it. It is my understanding if all three parts of the B&P clause are not filled in then a seller could really enforce the contract.I always advise my clients to wait until the finance is approved before getting the B&P done, simply because at around $400 you don't want to outlay the money if your finance is not approved.
Yeah I dont want to use the cooling off period just making sure that I will be able to get out of the contract if the building inspection shows up too many problems. We did fill out the inspection clause in the contract with 21 days and inspector of my choice.
I dont think there will be any serious problems, just want to use the report to negotiate a better price. If this is the case, is the original contract terminated and new one made up if the vendor agrees to new terms after the building inspection is done or are the new terms written into the original contract?
I am worried that if I leave the building inspection for the 21 days written in the contract that I wont have enough time to negotiate a new price, is this the case or will a new contract start the process again?
depends on the solicitors involved, some prefer to end the contract and draw up new ones, others that will work together – not always an easy thing to find – can just make the required changes.
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