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Pull out under building and pest

Discussion in 'Legal Issues' started by Whitecat, 12th Mar, 2016.

  1. Whitecat

    Whitecat Well-Known Member

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    I have changed my mind on a property that is on a conditional contract.
    I haven't yet done the building and pest inspection but I went back at night to test for road noise and it was significantly greater than what have been indicated by the agent and what I can actually tolerate l at night (its vacant and I went and tested) Therefore as I'm not actually overwhelmed by this property I wish to pull out.
    I'm still in the cooling off period but I would prefer to use the building clause to avoid penalty.
    I have a building inspection on Monday. Do I actually need to give a reason to the sellers as to why I'm pulling out under the building clause as long as I furnish them with the building inspection? The inspection will probably come up pretty clean due to condition. My understanding is that I can pull out due to anything related to the structure/building whether that being considered by them to be an issue or not for example that I understood that it may have had 3 studs metres rather than 4 or anything I don't like. I understand that you don't actually need to get a reason just that just supply them at the report and state that you're pulling out.
    Can someone please confirm thanks.
    Solicitor not available Sat morning unless you have their mobile.
    Queensland.
    Thanks
     
  2. Joshwaaaa

    Joshwaaaa Well-Known Member

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    Weasel out through cooling off rather then making rubbish lies up.
     
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  3. Whitecat

    Whitecat Well-Known Member

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    What I'm trying to establish is whether I have to say anything at all if I withdraw under building Pest. I'm not proposing to lie.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Why pay for p&b if you can use cooling off? How much isn't it gonna cost you?
     
  5. Whitecat

    Whitecat Well-Known Member

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    Pest and building cost 300. Minus some value of general knowledge on houses and structures etc gained from the good inspector.
    Cooling off penalty would be almost 2k.
     
  6. Heinz57

    Heinz57 Well-Known Member

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    I have withdrawn offer under B & P and the agent didn't ask for further info. But they could.
     
  7. Chrispy

    Chrispy Well-Known Member Premium Member

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    I had someone lead me on through B & P for 4 months then pull out saying it was the roof screws!!! there was not anything I could do BUT they did have to give a reason, that was Queensland
     
  8. wombat777

    wombat777 Well-Known Member Premium Member

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    You should just wear the $2k. You have wasted the vendor's time in pre-sale inspection, negotiation and now B&P phases. They have also potentially lost out on other offers from potential buyers that have now gone elsewhere.
     
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  9. Bran

    Bran Well-Known Member

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    As nice as it is to be Mr Nice Guy, you do what is right for you. Touch base with RPI.

    Have you paid the deposit? Your cooling off withdrawal penalty can only be taken out of the deposit. No deposit, no cost.

    Road noise is part of your DD. You owe them nothing.
     
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  10. wylie

    wylie Moderator Staff Member

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    I'm with wombat777 on this one. In all cases I've personally known about (including our own sales) it has been necessary to show the reason you are getting out under B&P. My mother used to say that we should write in a clause that if they get out through B&P we are entitled to see a copy and not just that they cherry pick out a clause.

    How would you feel as the vendor? How is your conscience? I wouldn't do it. I would get it done and get out legally (if it comes back with issues that allow you an "out"), or pay up under the cooling off that you signed.

    Vendor could well have lost buyers already.
     
  11. Whitecat

    Whitecat Well-Known Member

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    [QUOTE="wylie, post: 176679, I would get it done and get out legally (if it comes back with issues that allow you an "out"[/QUOTE]

    I'm interested in this concept.
     
  12. Whitecat

    Whitecat Well-Known Member

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    I haven't paid a deposit but the penalty is in the contract. They can still ask for the penalty
     
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  13. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Then DON"T pay the deposit.

    The penalty is a deduction from any deposit paid. No deposit, no penalty.

    You have termination rights under both B&P and finance. You probably have numerous other termination rights under the contract.

    In QLD it is very common to terminate, the seller's will not be assuming anything until it is unconditional and there is no need to pay anything.

    B&P terminations you must actually do the B&P and provide a copy of the report to the otherside. But you don't need to be reasonable about terminating, any little thing will do.

    Finance terminations you must actually apply for finance, or at least take reasonable steps to do so. But you don't need to be reasonable about accepting, there will be something in the offer of finance you don't like. No rejection letter needed. Maybe you wanted to pay 1% interest. No reasonableness required. Maybe the noise affects your future extension plans and accordingly the finance offer is not enough to deal with the extra work required to deal with noise. No reasonableness required.
     
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  14. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Property Occupations Act


    168 Terminating relevant contract during cooling-off period
    (1) A buyer who has not waived the cooling-off period for a relevant contract under section 167 may terminate the contract at any time during the cooling-off period or, if that period has been shortened under section 167(2), the shortened period, by giving a signed notice of termination to the seller.

    (2) The seller may deduct from any deposit paid under the relevant contract an amount not greater than the termination penalty.
     
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  15. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I believe there is no contract till you have paid the deposit.
     
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  16. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    If subject to finance, just ask your broker to issue a letter that the loan has been declined.
     
  17. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @RPI has given the best advice - please follow that. Withdraw under cooling off and as you haven't paid deposit there is no cost to you.
     
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  18. Whitecat

    Whitecat Well-Known Member

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    Thanks Daryl I see why the folks on here recommend you. You are responsive and helpful.
     
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  19. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Common misconception but not correct. The promise to pay is sufficient consideration for a contract to exist. Can also be other forms of consideration other than money.
     
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  20. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Ta Daryl. :)
     
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