Perth: Agent refusing b&p inspection till after finance approval

Discussion in 'Legal Issues' started by FatElephant, 22nd Mar, 2022.

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  1. FatElephant

    FatElephant Well-Known Member

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    Hello,

    I just need some advice from people who are familiar with the purchasing process in Perth since my conveyancer isn't picking up my calls as it's out of business hours.

    I have signed a contract for a property on Saturday and I've been wanting to arrange a B&P inspection immediately. When I told the agent that I wanted her to open the house so I can get a b&p done, she said that the process is that b&p is done AFTER I get unconditional finance.

    I asked my property manager that and he said that's not normal. I asked my conveyancer whether this is normal and she said sometimes they do this but that's to ensure that you're not spending money on b&ps when you might not get finance. She told me to tell a white lie and tell the agent that my bank needs it for finance approval.

    When I told that to my agent she asked which bank and that it's not normal and that never happens. Does it? I checked the contract and they're using the standard structural clause and the stand pest clause from REIWA and the date says I just need to get it done 10 business days before the settlement date. It doesn't say that I can only do it after my finance has been approved.

    So they have the right to refuse me if I wanted to do a b&p inspection?
     
  2. thatbum

    thatbum Well-Known Member

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    Nah the agent is full of it. What are you going to do about it though? I don't know why you bothered even lying about it.

    Assert your contractual rights already.
     
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  3. FatElephant

    FatElephant Well-Known Member

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    These are the structural and pest clauses on my contract.

    Pest says I should do it no later than 10 days before settlement.

    Structural one is a bit of a concern now since she wrote "10 days prior till settlement" above the box that says "The Date" so technically "The Date" is empty. And clause 7.3 says that if the date is empty then it's 5 business days after the contract is accepted. Which just makes me think that there may be something structurally wrong and they're trying to make me late for my structural inspection clause.

    And I lied about it because that was the advice from my solicitor. I'm not familiar with Perth laws so hence I was acting under her advice.
     

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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    No legal advice before signing? Not clever in WA
     
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  5. FatElephant

    FatElephant Well-Known Member

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    The problem is no where in the contract does it say that I shouldn't be able to do a b&p inspection before finance approval or paying my deposit as they're all separate clauses.

    But I have just received this text from the agent:
    "not sure what is going on but I have just been told you want this done before you pay your deposit, unfortunately no one will be accessing the property until that's been paid as this is our process..."

    So essentially she's not going to allow access until I pay my deposit.

    I also think it's time I change conveyancers aa well but this solicitor's details are written in the contract so not sure how I go about changing now...
     
  6. sash

    sash Well-Known Member

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    This agent has no respect for you.

    Time to enforce your rights...you need a decent conveyancer...to push back...and rip her a new one!

    Better still walk away......see what she says.......will always be another property.....
     
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  7. FatElephant

    FatElephant Well-Known Member

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    Yes it definitely does. I'm going to contact a new conveyancer tomorrow and hold off responding to the agent for now.

    I would want to walk away too but I've already signed the contract and the seller has accepted so from my understanding of Perth's offer and acceptance process is that this is a binding contract and I can't get out.
     
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    That is a super backwards way of having a contract. That effectively means that the contract is not unconditional until after finance AND after B&P. So could be in conditional limbo until 10 days before settlement. The poor sellers not knowing if it's going to fall over until then. It's insane

    1. You shouldn't have agreed to it in the first place if you didn't understand what the agent was putting on the contract
    2. You should be able to enforce your rights to have a B&P now but I do agree that you should pay your deposit first - not legally but just as a sign of good faith. The offer is accepted so now it's time to pay the deposit - unless the time to pay the deposit is also long?

    Out of curiosity now long is the contract for? How long for deposit, finance, B&P and settlement
     
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  9. sash

    sash Well-Known Member

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    Put her in stress position...tell her no inspection no deposit....she will need to explain to her vendor.....:D

    Meanwhile sit back and have a few cocktails....watch the sunset...etc...etc....;)
     
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  10. jaydee

    jaydee Well-Known Member

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    I think the agent may have come across cases where a Buyer has got out of the contract using the Finance Clause.

    For example, the B&P won't give you an out unless there is major structural damage that the Seller wont fix. If the B&P highlights some issues it is possible you may be able to use the Finance Clause to wiggle out of the contract.

    That being said, it is normal to do B&P prior to Finance being finalised.
     
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  11. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    B&P inspection after the finance is unconditional just tells me the agent knows there is likely something wrong and you may use the finance as a way to exit the contract if the wording of the B&P clause isn't sufficent (these clauses are quite abiguous).

    I'd tell them it the B&P inspections get done immediately or you will terminate the contract. You could use the finance clause to do this by telling the bank that you suspect the house may have undisclosed strcutural or pest issues. They'll happliy decline the finance on that basis.
     
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  12. FatElephant

    FatElephant Well-Known Member

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    Thank you so much everyone for your feedback!! I really appreciate it during this stressful time.

    I have contacted another b&p inspector who said that they can do an inspection today and 24 hour turnaround time for writing the report - so I've passed the agent's details on them.

    I also just sent the agent a very firm text message this morning (she wanted me to call her but for evidence sake I texted her instead) that I want a b&p done asap for my peace of mind - so once finance comes through the contract will immediately become unconditional - rather than have to wait for b&p. I then told her that my b&p inspector will be contacting her today to arrange an inspection so if she could please coordinate with them :)

    1. All this **** she is telling me is NOT part of the contract. I've read through the contract (ironic that I've had to do this by myself and my solicitor isn't the one who is going through my contract and checking these details for me). The contract does not specify when that the b&p can't be done until after finance approval or until after I've paid my deposit etc. She's just telling me this stuff and saying 'that's not how the contract was written' and 'this is our process'.

    2. Deposit = 5 days after the date of contract acceptance from the seller (and I have just paid the deposit this morning as per your advice, I never had a problem with paying the deposit until my solicitor gave me the advice to do a b&p before paying my deposit).

    Finance = 28 days after the date of contract acceptance

    Structural = Must be done at least 10 days prior to settlement (doesn't say I can't do it before a specific date or event)

    Pest = Must be done at least 10 days prior to settlement (doesn't say I can't do it before a specific date or event)

    Yes that is right and I would definitely do that if something major comes out of the b&p as I also am aware that it's very hard to use b&p clauses to get out of a contract.

    That is exactly what I was telling my broker last night! That I suspect there is something sus and hence she's trying to make me do that (even though no where in the contract does it specify that I must do a b&p only after unconditional finance). And my broker said there is no point processing an entire finance application if something major were to come up in b&p inspection as I would then be liable to paying application and valuation fees.

    I've passed her details to my building inspector and told her that they'll be contacting her today and to please arrange with them for my b&p. My b&p inspector said he'll get back to me today if she refuses access - I'll tell her that I'll terminate the contract. Thank you so much!