Urgent opinion needed plz. Signed contract of sale without inspection

Hi all, I am sorry if it has already been discussed, but I can't help my anxiety. Last weekend I've signed a Contract of Sale to purchase a home. This is around 3 years old home, built very basic without any upgrades being an investment property for rental income. I inspected the home only once at night time and did not pay too much attention to details, but didn't notice anything wrong apparently. I signed the contract without getting it inspected by a professional, assuming the home is still under builder warranty (as advertised by the agent). I've asked the agent to send me builders warranty insurance and other relevant documents, he says he will chase up and get those for me. But all of sudden today I am getting too anxious about any potential issues with the home.

Would someone please suggest what could be the worst-case cost of not getting professional inspection? That could give me peace of mind if the worst case scenario is not too bad, otherwise I would insist to the agent to allow me to carry on a building inspection, and will walk away losing my deposit. Or do you think of any other option I have? Until now I've paid only 1K but I've to pay another 40K this Friday. I want to get a realistic view on the situation. Thanks in advance.

 

Worst case is probably that the house could be eaten out by termites.

Did you get a solicitor to look o we the contract?

 

Thanks Ace for your reply. I wanted to know the expected costs in worst case. So if there are termites and have already done damage, how much does it cost to mitigate the damage? Is that in thousands? or tens of thousands? I want to get an idea how costly my mistake could be

 

Best case scenario, nothing happens all is well. Worst case scenario, structural defect which yes should be covered by builders warranty and if builder gone bust, still covered by domestic builder insurance. For 3 yr old house, most likely scenario, house will still be standing for the next 20 years

 

Yikes! You can always request an extension on your cooling off period. I remember a few year ago (long time actually) I couldn't secure my loan in time and asked for another 7 days which they were happy to give me. The vendor has a lot more to lose right now.... That way you can sort out what you want to do with a cooler head

 

We always recommend clients to do the building and pest inspection - its well worth the money for something that is one of the biggest investments you will make. Worth it for the sleep at night factor.

Another benefit is that it may highlight small and big things that may need fixing in the future. It will take less than a few to get the inspector out and the report back.

 

Hi Chris, what is cooling off period? I just signed the contract of sale and in this document its mentioned that I'd pay 5% this Friday and remaining in October at settlement time. There is only 1 special condition which says the contract is subject to finance. Do buyers have any cooling off period after they sign a Contract of Sale? Thanks

 

This is why you should seek legal advice before signing a contract.

Which state is it located in?

 

Its located in Victoria (Melbourne)

 

Thanks Jjjj, it puts my mind at ease. I'll ask the agent tomorrow that I want to get a building inspection done and if he refuses I'll just leave my 1K deposit with them and walk away, do you think there are any likely legal complexities going forward if I just walk away?

 

If the vendor has not signed, it's not binding, you can call the agent to cancel the agreement and get your deposit back. It's only binding after the vendor has signed and s n p agreement sent to your lawyers

 

I'm afraid yes the vendor has signed and they've sent it to my conveyancer.

 

The cooling off period is generally 3 days only in VIC. This means you could potentially terminate the contract within 3 days of entering it (losing about 0.20% of the purchase price though)

 

I've just read the contract again and found one thing: In special conditions its mentioned that its subject to loan approval by 5th of August, and the loan amount written is 90% LVR which I cannot borrow from any bank. In fact I am borrowing at 70+ percent LVR, so that condition is not met although I've got a loan approved. Do you think that can rescue me if the building inspection shows something major?

 

Yes

 

You need to hire a solicitor/conveyancer to represent you in your purchase right now. That is standard procedure and they will read the contract and advise on your options.

 

Who wrote those special conditions in? It sounds weird unless you put it there.

 

The agent wrote herself as she sent me a pre-filled contract form, and I asked her to make it conditional to my loan approval.

 

You trusted the selling agent to put in conditions for you? If this holds your lucky the agent is incompetent. Any selling agent that puts that into a contract for a buyer should be fired by the seller.

 

Whoa calm down champ, that seems to be too judgmental
She put the condition because I asked her to do so, as I didn't have access to a printer at the time so I had to electronically sign using my mobile phone. And of course I would read the document before signing wouldn't I? Yes I assumed the building inspection was not necessary as its still under warranty, and that was a mistake on my part! and I've already confessed that mistake, and thats this thread is all about