Refused Building Inspection...

Hi there, I've a written offer ready to send to a real estate agent for the private sale property. The agent and I have discussed terms, inc price, and are very close to signing a deal - however, they have just refused a building inspection on the property. It's vacant, so no tenants to disturb - there are also no other offers on the table. Does this sound normal?

 

Did you ask them why?

 

Is it a property being sold for land value only? Otherwise I'd be very suspicious. There was one referenced here a few years ago where the agent said something like 'inspect from footpath only'. Former cannabis joint, crime scene, was owned by old lady + 100 cats .... ? Might be worth trying to talk to the neighbours.

 

It's not just for land value, the property has been recently painted and re-carpeted, seems in good condition. The building inspection was the last tick to satisfy against 3 special conditions the vendor had added to the contract of sale - all relate to the property being sold as is, and that "the buyer must make own independent enquiries on all matters and should not rely on anything stated by or on behalf of the vendor". Just feels odd that I attempt to make these enquiries and am refused until I hand over 2k as a pre-deposit amount... Not sure if there is something to hide or the agent/vendor is being particular? I would have thought someone showing serious interest was a good thing? Just wondering if I am out of the loop or wanting too much?

 

I suppose the alternative is to get the building inspection done then make the offer?

 

Have they refused it absolutely, or refused it as a condition of the contract?

 

They are currently refusing a pre-purchase inspection. No inspections until a contract has been signed, with the standard AE terms of building inspection i.e. major faults only, and the initial down payment of $2,000 has been made. Just wondering if this is normal as during the negotiations a building inspection was clearly stated and we agree on all other terms. Why would a vendor/AE refuse a building inspection - I'm new to property so keen to understand the lay of the land so to speak.

 

Did you ask them why? (To echo post #2)

Sounds very iffy.

 

Yep, asked them for rational - "not policy for building inspections to be carried out without a written offer/signed contract".

 

Sounds fishy. If you're keen on the property and they're refusing B&P to be in the contract then organise to get it done during the cooling off period. If it comes back dodgy then cool off, and depending on the state, you may be up for a nominal amount (compared to the price of the property) by cooling off.

 

If it were me...

Walk away there are thousands of houses for sale in every state and in general it’s a buyers market.

If they want to sell and there is nothing wrong with the house they will come back to you.

If they do tell them you have found something else and are waiting for your formal offer to be accepted and if they still want an sale it’s now or never...

 

Sounds pretty normal to me? We've never done an inspection on a property before signing and paying the initial deposit. Never thought twice that it was a thing? Just get the inspection booked so it's done within the initial cool off, that way you're only gambling the initial deposit if you need to pull out for any reason in the cook off period (differs by state).

Every property we've ever bought (NSW, VIC & QLD) has been - view the property, interested, view again (not always), talk to agent, negotiate price & terms, sign contract, engage inspection. Only once we've pulled out in cool off and lost the initial deposit, it was a remote purchase via a buyers agent for a low price property, roof was shot and needed replacing so we pulled the pin and walked away.

That being said, this is very different from not being allowed to even view the property first!

 

They’ve got other offers waiting on the table. Maybe they just want to seal the deal quickly before other buyers walk. I’ve only done building inspections after a contract is signed and .25% put down, with the exception of one place that was being auctioned. Unless the market is slow it seems the norm.

 

By accepting an offer subject to building inspection? What if the building inspection fails? Other buyers are locked out while it's under offer so that would be more likely to lose other potential buyers, wouldn't it?

OP, if you do make an offer subject to building inspection you might want to make sure the building inspection condition is strong, not the standard 'structural defect' one which is basically useless IMHO.

I would be concerned that they are hiding something, no reason I can think of to refuse a pre-purchase inspection if the property is vacant. Policy sounds like BS to me, doesn't stop them from accepting an offer at any time, whereas an offer subject to inspection does.

 

as others are saying, my first thought they are hiding something and hoping that the buyer wont or negotiates a unconditional contract,

but at the same time they are risking the fact that if they get a signed contract with a cluase for BP, the buyer will pull out thus wasting a lot of time and opportunity cost

maybe they are playing with fire, intentionally

 

Perhaps playing to get the .25% knowing there are faults, but they aren't structural?

Seems somebody with nothing to hide would be fine for you to do your DD before making a solid offer, you could go unconditional and waive your cooling off if you are satisfied by the inspection.

What if they **** your B&P inspector around during the cooling off period and don't allow him access by playing games?

 

You could get "uncle Dave" (your building inspector) to come with you to a private inspection ?

Sure he won't be able to do a detailed inspection, but he should be able to walk around and peek while you keep the agent busy........

Then "uncle Dave" can give you a yay or nay responce before leaving