Hello all.
My partner and I put an offer in for a property in Victoria on Thursday 18/3 and it was accepted Friday 19/3 subject to finance and building/pest inspection. The building and finance clauses were standard. We had a building inspection done Tuesday 23/3. We received the building and pest report today Wednesday 24/3.
The building was fine but the pest report found severe termite damage but the termites were not "active" (not presently there).
Our pest clause effectively states the termites must be present to exit the contract within 7 days.
Our problems are:
– 3 day cooling off period finished yesterday
– Our finance was already pre-approved and would not be able to exit on that unless the broker/bank pulled a dodgy
– We cannot get the pest inspector to redo the report saying the termites are active as it compromises his job.
– We have spoken to our conveyancer and she says there is no real legal way to exit the contract.My partner and I would like to walk away from the deal and to not be forced to buy the property.
How would you negotiate your way out of this contract even though legally I am committed?
Cheers,
Dave
Dave,
The banks finance is not unconditional until settled. Advise the bank in writing the property has termite damage and you believe their security is compromised (noting if you are aware of anything impacting their security you should let them know). Also state you are not comfortable with the transaction as you have not factored in costs to repair the property.
Strictly speaking a bank should not proceed with a deal out of the clients comfort zone. They are therefore forced to decline the application.
I concur with the above comment. If you've done your property searches already and you found something that might also suade the bank the security is compromised, this may help us well.
Thanks Banker & I Dream. I will contact the bank tomorrow.
I will update my progress.
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