Hi all, i have signed a contract to buy a 1940's californian bungalo in the Footscray area, the contract is unconditional on finance, but conditional on a building and pest inspection but with no time restraint as we signed the contract just before christmas.
We have since had the report completed, which stated there could be termites in a particular section of a wall and that further investigation was needed ie cut a hole in the wall for visual inspection. From talking to the inspector he said every other part of the home is termite free aprt from possibly just one small section. The report also showed a leak in the tin roof at the back (Extention) and overall that the property is in a delapetated state and needs maintenance. The storm water pipe was also dug up by the neighbour when he put his fence up, he replaced it but it now sits at ground level and the fall runs back towards the house not away from it this was not put in the report however.
Took the report to the agent and told him if the vendors fix the problems to our satisfaction that would suffice otherwise we want a reduction in the price, he spoke with the vendors and told us yeah thats fine they will fix the problems dont worry about it, note nothing was signed to state this. Agent rang me up to say the inspection has been completed and there is no termites found on the property which i was happy about asked him for the report and he said he was getting it. So in the mean time i found out who it was that did the inspection and contacted them, they told me that the vendor was to tight to pay for an inspection so she just asked them to have a quick look at the place and if it looked like there was termites for a quote to get rid of them, so he wasnt going to write up a report. Spoke with the convenycer now belive it or not he is two doors down from the agent and we were given his card by the agent the only reason being it was the first week of this month and my regular conveyencer was on holidays until the 15th, i actually made a joke about it at the time, convenycer told me that the agreement for the vendors to fix everything needed to be written down on the contract.Without going on and on said to him can we walk from this deal now becuase of the building and pest inspection?
he said possibly not becuase it's dated the 8/1/08, i replied there is no way its dated as i initialed it on the contract, then he said well if it isnt dated you can get out of it but its not that easy…
Which brings me to the conclusion that as i suspected he would be looking after the agent for all the work supplied to him we have only put down $500 deposit does anyone have any advice on what we can do, short of contacting a solicotor.Hello Mr Bond,
I would suggest, although dont know how useful it will be, that because there has been no second pest inspection report that the first one is still valid, and if there is no date on the contract to complete the building and pest that you are well within your rights to terminate the contract.
Also, is there no way of getting in contact with your convenycer? They would be the best person to talk to i am guessing.Anyway, as i am not a solicitor i cannot be certain. Hope it helps though.
Cruzinbud.
If there is no timeframe on the inspections then you can get out of the contract. Even if it is dated you can probably get out but it becomes more difficult.
I assume that the special condition contained words to the effect of "subject to satisfactory pest inspection …" If you notified the vendor prior to the date on the contract that your inspections weren't satisfactory then you would probably be able to get ouf of the contract on the basis that you notified the vendor prior to that date. Any agreement with the vendor to repair the damages would become a new special condition, one that would have been better having had in writing although that is not necessarily fatal to your cause. If the vendor has not satisfied that condition, ie, fixed up the termite problem, then that would be an avenue to get out of the clause.
I'm not sure about the standard contracts in VIC but in other states, if you default on the contract the vendor is not only entitled to your deposit but to 10% of the purchase price. The problem the vendor will have will be going to court to try to get this money from you. Alternatively the vendor could force you to continue through with the purchase, but again, the vendor will have to go to court, which is expensive and probably not worth it.
Take it up with your conveyancer. If your conveyancer is not acting in your best interests then report him/her to the relevant authority. Alternatively, go to another conveyancer.
This is just general information and not intended to replace independent legal advice. Without knowing the specific wording of the contract it is hard to know your avenues from here.
Good luck
K
thanks for the responses guys, on the contract it just says subject to building and pest inspection with no date, there are various problems with the house. The report was done on the 2/1/08 so it would be fair and reasonable to say that we have just recieved quotes on some of the defects and we cannot afford to fix them. Even if the vendor was to offer a discount it would need to be pretty large which i dont think they would do any way. settlement is on the 14/02/07.
We have spent $550 on the building and pest around the same for conveyencer and put down a$500 deposit but it wouldnt bother me if we didnt get the deposit back as long as we can get out of the contract!!!!!!
Would rather lose $1500 now than buy a property that is just going bleed me dry.
James007 – going by what you have said you probably need to get a professional opinion. The vendor is entitled to up 10% of the purchase price if you terninate a contract without proper cause. While it sounds as if you have the right of it, there is no telling what the legal interpretation would be. I would suggest getting immiediate help.
Luke.. Len
if they could enforce 10% of the purchase price on us for unresonable cause in terminating the contract then we would just go ahead and buy the property it would cost less to fix it than pay 10%. Basically if we can walk from the contract then you never know the vendors may obligue and discount the property enough for us to feel comfortable in buying.
At the end of the day what is the point in getting a building & pest inspection and listing subject to building and pest if you cannot rescind from the contract becuase of it????James – you are able to walk from the contrace, provided you have done the necessary steps in notifying the agent/vendor of the problems in WRITING. Anything verbal is only worth what the other parties agree to at any time.
Once again – get professional advice. And – good luck with the deal. Sounds like a fun one for you.
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