Building & Pest Report – Best Outcomes

Building & Pest Report - Best Outcomes

Not Happy With The Report ?

In a perfect world every house would be perfect. We know that’s never going to be the case so, If after taking into account the age and history of the property you are happy enough with the reports just advise your solicitor and ask them to ‘satisfy’ that condition of the contract.

It’s important realise that most sellers want to sell a good quality house at a fair price. If something has shown up that was genuinely unknown to buyer or seller then this is an opportunity to work through it. Some buyers try to treat a building and pest clause as some sort of automatic method of reducing the purchase price. That is not the purpose. We want every buyer to know what they’re purchasing and receive fair value for the price.

3 Options

If the report shows up defects that affect the structure or integrity of the property that were unknown to you before you agreed to buy the property then there are three options to choose from; 


1. Terminate The Contract

If things are just so scary that you feel the need to walk away, just do it. 

a. Message the agent out of courtesy, so they can give the seller some notice.

b. Ask your solicitor to formally terminate the contract and request that the deposit be refunded.
c. Provide a copy of the report to the sellers via the agent

** There’s usually a way through any issue. If you still trust the agent ask for their help with option two or three below.

 

2. Request Repair Before Settlement.

a. Talk to the agent, they know the seller, allow them to help you negotiate the terms of the repairs. 
b. Repairs should be completed by qualified &/or licensed tradespeople.
c. Have your solicitor confirm the agreement formally.

** It’s important to note that the outcome should be ‘satisfactory to the buyer’. However, the buyer must also ‘act reasonably’. In other words requests should not be trying to make an old home new again. The repairs should be about bringing the property back in line with what was known and understood about the condition and age of the property at the time of purchase. 

 

3. Renegotiate The Sale Price

  • Would this repair benefit the property substantially into the future?
  • Is there still an unknown component to the defect?
  • Is the defect important but not urgent?

It might be worth splitting the cost of the repairs. It might just be more time efficient for all parties to agree on a dollar figure that would bring the property back to its expected condition and take that dollar amount off the purchase price. 

a. Arrange quotes. 
b. Allow the agent to help you negotiate a fair outcome.
c. Have your solicitor confirm the agreement formally.