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You must remember they're not your agent - They act for the vendor and the vendor is not legally bound to give up to the agent whether the property has termites or not. Of course it would be nice if all vendors told the agents and if all agents were 100% honest. No, the vendor will have...

I know, I am from Sydney - It's the same with Melbourne and most states I think with the cooling off period. For the record, there's always other properties just the same, if not better! Sometimes it is best to walk away and let the other buyer deal with it and if it's put back on the market...

Well yes, they are. However, unfortunately some are not. If you pull out of the contract the agent must tell the next buyer of the issues with the property and the next buyer could potentially get a really good deal. I do agree with the emotional high though.

Did you put a building and pest clause in the contract you signed? If not, get out on the cooling off and next time make sure you put one in or potentially be up for thousands of dollars in repairs.