Buyers inspection Clause

Discussion in 'Legal Issues' started by Timwest, 22nd Jun, 2016.

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  1. Timwest

    Timwest Well-Known Member

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    Hi,

    I am buying Interstate and have had an offer accepted on a property and included in the contract a buyers inspection clause stating -

    "This contract is subject to and conditional upon the Buyer being satisfied in their absolute discretion with the results of a Buyer's Inspection to be conducted by the Buyer at their expense within 10 days of the contract date. In the event that the Buyer is not so satisfied the Buyer may give notice to the Seller terminating this contract, at which time the contract shall be at an end and any Deposit shall be refunded in full to the Buyer. The Seller hereby acknowledges that this special condition is for the benefit of the Buyer only, and as such can only be waived or satisfied by the Buyer."

    Then another property comes online that you are really interested in, could you then put an offer on the other property and include the same clause then fly up and inspect both properties and go with the one that best suits?

    Obviously on top of this clause is the usual 14 days for B&P and Fiancne
     
    Timwest, 22nd Jun, 2016
    #1
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Depends which state you're buying in. Here in SA there's a cooling off period so you can bail from the deal for any reason you like. The initial deposit isn't due til the cooling off period lapses, so there's no penalty at all.
     
    D.T., 22nd Jun, 2016
    #2
  3. Timwest

    Timwest Well-Known Member

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    Looking in QLD, not sure if it has a cooling off period.
     
    Timwest, 22nd Jun, 2016
    #3
  4. markson

    markson Well-Known Member

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    Just checked my legal documents from my last purchase in QLD.

    Cooling off Period:
    7 Days
    You are entitled to terminate the cooling off period but if you do the seller may deduct the termination penalty of 0.25% of the purchase price from the deposit
     
    markson, 22nd Jun, 2016
    #4
  5. Big Will

    Big Will Well-Known Member

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    You can try it, however the offer would be weak as you haven't inspected the property.

    If you have a friend that can inspect the property first and then you put the clause in it makes it stronger (in my eyes) as someone has seen it and said it is good and you can say your friend/family member saw it and it is unlikely that I will use this clause as it has been viewed by them.
     
    Big Will, 22nd Jun, 2016
    #5
  6. Marg4000

    Marg4000 Well-Known Member

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    If I were the vendor, I would see your offer as "I am not sure if I want this property, but I want you to take it off the market for 10 days while I make up my mind, at no cost to me".

    Hardly an attractive offer.
    Marg
     
    Marg4000, 22nd Jun, 2016
    #6
    Paul@PAS and 158 like this.