What Happens After A Building And Pest Inspection?
The choice is yours.
In Queensland, it is the buyer’s obligation to organise the building and pest inspection before finalizing the sale. As this ensures you are fully aware of the current condition of the property before you buy it.
Generally, you will have a small window in which to get the inspection and advise the agent of your decision based on the findings of the report. After receiving your report, you typically have three options.
1. Proceed with the purchase
If the findings of the report are satisfactory, most people will proceed with the purchase of the property. Whether the findings of the report are satisfactory will depend on your individual situation. For instance, someone who wants to renovate may be satisfied with a property that has a few major defects. Whereas the next person may not.
In this case, you will need to notify your conveyancer that you are happy with the results of the building and pest and wish to continue with the purchase. Generally, in this scenario, there is no reason to negotiate with the seller.
2. Negotiate with the vendor
If the building and pest report has a few items of concern but you otherwise wish to proceed with the purchase, you may wish to negotiate with the vendor. There are generally two options when it comes to negotiating with the vendor regarding the building and pest report. First, you may negotiate a reduction in the purchase price and complete the repairs yourself. Second, you may negotiate with the vendor to fix the repairs prior to settlement. In either case, you will need to contact your conveyancer or lawyer as they will initiate negotiations.
It is also important to note that most negotiations take place over major building defects in the building and pest report, not minor defects. As minor defects are considered more maintenance items and do not affect the livability of the property. You can find out more about the definition of building defects and their classification here.
3. Exit the purchase contract
If the findings of the building and pest report are not satisfactory, you may wish to exit the purchase contract. Most people consider the building and pest report to be unsatisfactory when major defects have been found. Some people may be willing to negotiate but for others the defects may be beyond their desire, budget, or resources to repair. In this case, you will need to notify your lawyer or conveyancer and they will terminate the contract on your behalf. Any deposit you’ve paid will also be refunded to you.
You can find out more about terminating under a building and pest condition here.
The final decision rests with you
As professional building and pest inspectors, we cannot advise you which option is best suited to your situation. There are many factors that influence whether a home is a good investment for someone or not. Such as their financial situation, lifestyle and future plans. Our role as building and pest inspectors is to provide you with an understanding of the current condition of the property so you can make an informed decision.
Still not sure what you should do?
If you’re not sure what your next step should be, we recommend contacting your financial broker, lawyer or conveyancer for further advice. They will have a better understanding of your financial situation and current circumstances. You may also find it helpful to contact the relevant trades recommended in the building and pest report. This will give you an understanding of what’s involved in repairing the defects and an estimated cost for repairs.
Contact us today
At Dedant, our inspectors and friendly office staff are always on hand if you have any questions or would like to book an inspection. We also pride ourselves on providing ongoing customer care after the inspection, with your inspector being available to answer any of your follow-up after building and pest inspection.