Terminating under building and pest

Hi there,

Must be a stressful time.

A few things:

• What does it say on the first page of the contract where the special conditions are noted? From memory, I think the standard REIV form is extremely vague UNLESS you get a lawyer to word the condition for you and your write it in. If you just sign it as it is, I think it implies that the house needs to be on the verge of collapse before it takes effect. As such, the just be prepared for the vendor's lawyers to challenge you as to whether the property is in such a bad state that you can pull out (especially in times like this when it is a difficult time for sellers).
• The report seems to note nothing that is of major structural damage. As others have observed above, while the ceiling is noted as a safety issue, it does not indicate structural damage - just that it needs new ceiling panels put in. The cause MAY be an ongoing leak, but this is something roof people/plumbers can fix. Importantly, from the snippet you posted, I do not see the inspector has found any permanent water damage to the frame (which is structural).
• The bit that says "Major Structural Defects" as far as I can figure is a heading for the section, and ONLY a "safety hazard" (bolded) has been found. My interpretation of the report as shown is that NO "major structural defect" or "major" defect has been found?
• The footings sound like good news - timber termite bait has been replaced by concrete stumps.

At this stage, I'd say:

• You are suffering form a major bout of buyer's remorse
• The best option (if your conveyancer can't bin this purchase) is probably to negotiate a lower price with the vendor to compensate for the cost of fixing the ceiling and glass.

As I have written elsewhere, in Vic I get the inspection done BEFORE I put an offer in - so I know what I am getting and don't get into a situation like this (Qld is a totally different kettle of fish).

Just for completeness - did you have a finance clause in there too?

The Y-man

 

I was going to say I have seen a lot more contracts crash on finance than B&P - I imagine it would even be more common now....

The Y-man