What constitutes an unsatisfactory B&P report in QLD? Who decides?

It's the first time I am buying a property, and I realise this could be a silly question.

It is to my understanding that a standard contract in QLD is often subject to a building and pest condition.

Let's think the Building and Pest report is not completely satisfactory, but not terrible either. In this case, will the buyer have the right to terminate the contract and get their deposit back, if they wish?

 

You probably don't have a right to terminate, no, but the question is whether the vendors would sue you for damages. If they do, the court asks whether a reasonable person, having seen that report, would consider the condition of the property (as per the inspection report) to be so different from what was apparent from a visual inspection as to be acting reasonably in wanting to terminate the contract.

So if there is repainting required, a few chipped tiles, a blocked drain (that can be fixed for a few hundred $), loose roof tiles/sheets, small holes in guttering, etc - these are all things that are reasonable to expect to find in a non-brand-new home, and probably not reasons to justify termination.

Sinking foundations, extensive termites, non-compliance with building regulations that costs $10s of K to make compliant, etc - these are all reasons that probably do justify termination.

Where the line is in the middle can only be discovered through litigation.

But it's not a "get out of jail free" card that you can use for any small item on a B&P, that many buyers seem to think it is.

 

The other benefit of a building and pest is as a negotiation tool. You can tally estimated cost to rectify minor defects and try for a reduction in agreed price. Might be harder in current sellers market.

 

The other thing I would say is that in my experience there is still a good chance of being able to pull out on b&p even if only modest defects are found. In most of the reports I have seen there are always at least one or two items that you could choose to interpret really negatively if you wanted to get out.

I have pulled out of two purchases on B&P and never had more than a couple of questions from the REA, although in each of those properties the issues were quite significant.

 

QLD there is no requirement to be reasonable. You need to have the inspection done to be able to use the clause but you can terminate over any negative comment at all.

 

This isn't my area of expertise - and it is yours - so I'd normally defer, but I've found several Queensland lawyers whose websites say otherwise. Is this recent case law?

 

Nah, it's old law. They probably read it on google.

 

"It's the vibe." Danny Denuto, The Castle.

 

Special condition outlining that must be for structural issues etc works. Draft new clause that overides the old