Why You Should Have a Building Inspection
The sale of a home or property is usually dependent on the results of a pre-purchase building inspection and pre-purchase pest inspection. It is only finalised if the buyer is satisfied with the results of these building and pest inspections.
What is the meaning of being satisfied? Are there situations where a buyer can back away or is it just a case of using a loophole to get back away when they have cold feet?
These are questions that may come up in the transaction of a home. If a buyer does not have a building inspection and cancels the deal it is most likely that the deposit will be lost. Furthermore, they can be sued by the seller for breaching the contract, particularly if the house ends up being sold to a different person at a lower price.
The building inspection conditions are not entirely an automatic option for terminating a contract like buyers believe. On the contrary, there are a lot of things that depend on the exact wording of the condition language. For example, if the contract says “the buyer has to be satisfied with building inspection and pest inspection and in their absolute and sole discretion, it helps the buyer. It may not help if for instance, the buyer decides to use a relative in the building inspection and just state that the property is not good. A quality building inspection has to be done and this is offered by a quality building inspection firms like Aegis Building Inspections.
The buyer should be very careful when asking the seller’s agent if they can recommend and building inspector and pest inspector. At Aegis Building Inspections we work only for you the client and our building and pest inspections are completely independent and unbiased. After you have selected our services, our inspectors will spend hours inspecting the home and provide you with an explanation and a detailed report that will allow you to easily make a decision on whether or not the deal should go ahead of be terminated after ascertaining the facts.
Our building inspectors and pest inspectors are bound to carry out their inspections according the Australian Standard. For instance, they are not permitted to investigate behind the walls to find evidence of mould or leaks unless they are contracted to do so in a special purpose report. Furthermore, this is worsened by the fact that sellers do not necessarily disclose faults in the property. This leaves the notion of scepticism by the buyer that they will only find out problems when it is too late and with the seller hoping that the deal will close without the prospective buyer ever finding out these existing problems that they are aware of.
Moreover, sellers are not allowed to see the building inspection report of the buyer that can only happen if it is in the condition. It can literally be serious to the property seller. Take a case where the property only sells subject to the building inspection and pest inspection conditions. In this case if the buyer says he/she is not satisfied and cancels then they get the refund of the deposit. In this case, the buyer will have knowledge of the defects or wrong things in the property while the seller does not even know how to explain it.
To solve a problem like this for the seller, they have to insert a clause in every home inspection condition. The close may say like in the event that the buyer is not satisfied with the property for some reasons and proceeds to cancel the deal. They have to provide the seller with a copy of the home inspection report in 24 hours. This actually enables the seller to be able to explain the problems found to other future buyers or even fix the problems.
However, there are cases where the seller still takes the strong stand that probably the buyer wasn’t sincere when the cancellation of the deal was done. This may mean unsatisfactory home inspection and the seller can even decline to refund deposit made by the buyer. Basically the deposit cannot be returned absent agreement between the seller and buyer. This will obviously result in difficulty to the buyer as he/she may not be able to make another offer on a different property, because there is no enough money for that as they continue to fight with the seller over deposit money.
In order to prevent this kind of problem it is recommended that buyers make two deposits. This is in their re-sale property. For instance, a small deposit upon acceptance of the offer and the final upon satisfaction with the home inspection report and condition. This protects the buyer in the event he/she is not satisfied and also the seller makes an attempt to withhold the buyer’s deposit. In this case, the buyer will be fighting for a smaller amount.
If both buyers and sellers have an understanding of all the rights and obligations they have under the home inspection condition, then hopefully there will be disclosure of defects by the seller upfront. This will enable the buyer to do a proper home inspection in good faith and close the deal.
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Your safety and peace of mind is our objective. Aegis Safe has been helping our clients protect their staff and property with our full range of comprehensive fire protection solutions since 2009. We specialise in installing, inspecting, testing, diagnosing and repairing fire protection systems.