building and pest inspection

Hi,

I have placed an offer with a signed contract on a property. I made the offer subject to a satisfactory building and pest inspection. The real estate agent was very resistant and argumentive towards placing the word "satisfactory" within this clause.

He argued it was too vague and allow me to cancel the contract over anything. My solicitor argued if it was not inserted they could potentially force me to go ahead with the purchase even if the inspection shows up with Any issues.

The agent stated this will probably affect whether the offer will be accepted.

What are your thoughts? Do you insert the word satisfactory to your B and P clause?

 

i think the standard b&p clause only allows you to get out if there is a structural issue or active termites

Cheers, Elives

 

I'd go further than that and say "satisfactory to the purchaser".

 

Here's my suggested wording. Don't compromise on the wording of the B&P inspection clause. It's your offer and you're entitled to include your wording. It may well end up saving you a fortune. A number of my purchaser clients have been able to walk away by using a broadly worded clause.

Remember: if the vendor really had a better offer, they would have accepted it. And there are plenty of fish in the property sea.

 

What was the agent proposing the wording be ?

 

It is up to you and what wording you want to use.

If you use satisfactory and another person puts an offer of something that compromises the structural integrity which one would you pick if you were the vendor?

Same if one is satisfactory and the other doesn't have building and pest and both offers are the same otherwise the vendor will pick the one without B&P.

On my recent purchase I had satisfactory but the agent didn't like that I could advertise the property for rent once we go unconditional. Our settlement wasn't until February and the agent said to change the word and I cbf as I said we wouldn't be advertising for rent until next year. Anyway I gave up and put 30 days prior to settlement and unconditional which he didn't like either so it just ended up being 30 days prior.

It just means that now I cant advertise it for rent 45 days prior (unless the vendor agrees to change contract) but it isn't a big loss as I would of been looking 30 days prior to advertise it anyway.

 

My two recent purchases, my solicitor added an Annexure, which contained wording that ensured that basically I could terminate for any reason within 14 days of the contract date. Neither seller had any issues with this - it was worded well
You can put whatever you want in it - its whether the seller is happy to agree to the terms or not. Less terms, the better for the seller.

 

The agent just want the wording to be

Subject to building and pest inspection

Thanks for your replies! Standing firm with my wording.