This is my first purchase, I am about to make a purchase and I was wondering, after signing O&A subject to the following condition:
Pest inspection
Building inspection
FinanceIf the building inspection came back ok but not as good as I thought the condition of the house are in, and I want to walk away. Can I legally end the contract oven though the building inspection came back ok (not great, just ok)?
Also, if I simply changed my mind after signing the O&A, and wants to get out of the contract, can I simply tell the realestate agent that finance can not be obtained. (without showing written evidence like a bank rejection letter or something like that)
Your thoughts on this subject will be greatly appreicated.
Best regards
It depends. If the other party hasn't accepted your offer you could withdraw it.
If they have accepted your offer then it will depend on the wording and how strict they are. They may want to see proof of a finance application rejection.
How was the subject to building inspection worded? if you just said "subject to satisfactory building inspection" then it is a bit vague – what does 'satisfactory' mean, satisfactory to who etc. It all depends on the wording.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks for your comments Terry. Would it be easier if we wrote in the contract as: "Subject to purchaser receives satisfactory building and pest control reports"? Does wording it like that putting us in the front seat to get out of the contracts just in case the building inspection reports came back not as good as we expected?
Reason we are bit concerned is the villa we are seeking to purchase was built in 1990 and we sold our old house 10 years earlier which was built in the same year. A guy made an written offer subject to satisfactory building inspection but later he wanted to get out due to the fact he feels the building inspection reports he received was unsatisfactory. I remember clearly on the building inspection reports it says something like: some cracking roof tiles needs to be replaces, some old plumbing needs new pipes, shower heads needs replacing. etc etc
Advises from those who bought an older house will be greatly treasured.
V
If "Subject to purchaser receives satisfactory building and pect inspection" is not enough due to the definition of "satisfactory" not stated, how is the wording be best written?
I think that wording is a bit vague. This is something your lawyer should be advising you on – if you get it wrong it could be costly.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
How about something along the lines of, 'Subject to pest and building inspection reports to the satisfaction of the purchaser'?
That way you (the purchaser) can say if you're satisfied or not.
Just my 2 cents' worth.
Hi, it sounds like you just want something written in case you change your mind. Is that ethical?
Why not find a place you REALLY want. Get the pest and building and if there are no major concerns buy it. IF there are major concerns you're covered.
Please explain – you sold a place that's 10 years old so you're wary of buying a place that's 10 years old?
BTW that is NOT old for a house/unit/villa.
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