Hi people,
I am asking this for my friends that have gotten themselves into a situation. They are typical first home buyers, trusting the REA and everything, signed an offer for a house that has been accepted and subject to finance and building+pest inspections.
The pest inspection found evidence of treatment for termites, the vendor confirms that some years ago they had a house treated and lost the paperwork. I believe my friends still can cool off.
What would you suggest, should they try and knock the price down? If that succeeds, go ahead with the purchase? Or cool off no matter what, because eventually they will need to sell that house and the word "termites" will drive potential buyers away? If knock the price down – how much (the offer they signed is for 294K, not exactly a bargain for that money)?
chrislang,
Where is the house?
If its in Northern Australia then most houses have had some termite treatment ( or should have ). Something like one in three houses are or have been attacted by termites, thus its probably not a concern, especially if the pest inspection says no active termite infestation noted.If the house is in southern Australia then it still could be OK, is the house near trees or bush etc?
Maybe it could be worth another pest inspection by another company? Maybe the buyers could suggest the sellers could contribute to the costs? It would be hard to get out of the contract unless the pest inspection says that termite damage has caused a major structural damage. They should talk to their solicitor about it urgently and see what they can do.
WJ Hooker wrote:chrislang,
Where is the house?Maybe it could be worth another pest inspection by another company? Maybe the buyers could suggest the sellers could contribute to the costs? It would be hard to get out of the contract unless the pest inspection says that termite damage has caused a major structural damage. They should talk to their solicitor about it urgently and see what they can do.
The house is in VIC, and you're absolutely right, they can't get out of contract because although there was some damage it's not a "major infestation" as the contract says. I was hoping they could cool off but they've missed the cooling off period.
I would be more concerned about a property that had no protection against termites. If there is no structural evidence of termite damage, why would you want to cool off?
Chris
Yes first home buyer, REA love them. Termites I have a place full of them the only thing holding the place up is the mud the ants leave behind lol. You have to take each case on its own. Subject to ???? purchaser satifaction of P & B report. normally 14 days to get it done. Cooling off 3 days. It no good getting it 5 k cheaper if its eaten out by ants. Treatment can last 3 to 7 years only. What type of treatment? Get a pest guy in to check it out, may be OK. But if you have had them once you may get them again. Check what damage has been done first. Special cons. on a contract must be tight to protect yyou the purchaser, that why the estate agent writes up the contract in their office for you to sign and not at your solicitors office & they will recomend a conveyencer not a solicitor. Get the picture.
Tony…………..
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