When a property is available for private sale, you may be able to make an offer “subject to a building and pest inspection”.
Older homes may have hidden issues with foundations and roofing, as well as termite infestation. Newer homes can have waterproofing and drainage issues. Investing in a building and pest inspection report could save you a fortune, if it means you end up buying an issue-plagued property. You may also be able to use the report’s findings to negotiate down the purchase price.
And if you buy “subject to building and pest inspection” ensure the special condition is broadly worded. You can insist on your wording of the special condition in the contract, so there’s enough wriggle room to terminate the contract if the inspection picks up any issues, regardless of their seriousness. Avoid the word “major” before ‘defect” and “live” before “pest infestation”. It’s your offer and you’re entitled to insist on your wording, regardless of what the selling agent says.
But remember: when you purchase at auction, the contract is not subject to anything (it’s unconditional), so you’ll need to arrange your building and pest inspection to occur before auction day.
Note: the above is general information and should not be considered as legal advice.
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