Making offers subject to Building and Pest reports?

[Hypnotic Cat]

Hello forum members,

I'm interested to hear from people who have bought property whether you have included a Building and Pest report clause in your contract?

If you did include a clause, how was it worded?

Here is an example suggested wording from the NAB site:

The contract is conditional upon the Purchaser/s obtaining at their expense a Building Inspection Report accepted as satisfactory by them within 14 days of acceptance of this contract.

If the report is not to the purchaser?s satisfaction, the Purchaser/s may at their option, terminate this contract by written notice, supported by a copy of the report, to the vendor?s Agent prior to date of 14 days from acceptance.

Whereupon the contract shall be at the end and all monies paid hereunder shall be repaid to the Purchasers without deduction.

Anyway, I submitted an offer (but didn't get it in the end) on a place this week subject to satisfactory B&P reports. I did not include the above clause on the offer form, all I included was: "offer subject to B&P reports that are satisfactory to purchaser"

The agent called me the next day saying mine was one of the top two offers, but he was trying very, very hard to talk me out of including ANY B&P clause in the contract.

In fact, I think his manner amounted to a kind of intimidation and bullying, even trying to tell me 'he's been in the business 15 years and has never included a B&P clause in a contract.' I think that's a load of BS.

I called my conveyancer and she advised me to include it and suggested I should stand my ground or walk away from the deal.

Thoughts?

 

[D_One]

Always include a B&P clause. The vendor is trying to intimidate you. What if you purchase the place and found out it is infested by termites or other nasties. Even worse, what if it has some serious structural damage?

Always protect your own interest first, because no one else will.

 

[Peter_Tersteeg]

When an agent tells me the vendor won't accept a B&P clause, my response is that they must be trying to hide something from me and I don't want to purchase the property without the inspection at any price.

 

[vaughan]

Depends on the state you're in. In NSW there is a 5 day cooling-off period during which B&P inspections can be done and considered, which negates the need for "subject to" clauses.

 

[Waldo]

Alternatively get a B&P inspection done over the next couple of days & resubmitt an offer without the clause if it all checks out ok.

I don't know if telling the agent that would make them any happier though!

 

[Aaron_C]

When an agent tells me the vendor won't accept a B&P clause, my response is that they must be trying to hide something from me and I don't want to purchase the property without the inspection at any price.

As if. As a vendor I wouldn't accept a B&P clause because it's just another avenue for the buyer to try and change their mind after a purchase. It's not about anything to hide at all - you can find something wrong with ANY building.

 

[Singo]

When a buyer adds a B&P clause, it is possible that they are just buying some time to think about it. But it is not always the case. Buyers can use Finance clause as well to walk away.

When the seller says no to B&P, there could be some issues. It is almost buying 'as is'. If you are buying a bargain then do a B&P inspection before making the offer.

I reckon giving a short time frame to do the B&P creates a win win situation. Say 7 days instead of 14

 

[Hypnotic Cat]

As if. As a vendor I wouldn't accept a B&P clause because it's just another avenue for the buyer to try and change their mind after a purchase. It's not about anything to hide at all - you can find something wrong with ANY building.

Hi,
I sold a place a few months ago and I had no problem at all with the purchaser including a B&P clause in the contract. I can understand not including it providing you can get all your inspections done within the cooling off period. In SA it's only 2 days, which at this time of year just prior to Christmas could make it a little dicey. In other states it's up to 5 days (which is plenty of time I think).

I think what many agents or vendors fail to realise is that when you are making an offer on a property (esp for a PPOR) the purchaser usually really wants the home and wants it all to go through without a hitch as much as the vendor does.

The only reason I would want to cancel a contract would be if there was something revealed in the B&P report that would be a deal breaker e.g. underpinning required, dodgy build quality or extensive termite damage.

 

[Aaron_C]

The only reason I would want to cancel a contract would be if there was something revealed in the B&P report that would be a deal breaker e.g. underpinning required, dodgy build quality or extensive termite damage.

Buyer's remorse is far more common than you would think. I want my buyer to be committed to the transaction as much as possible. Like I said, you can find fault in any property with a B&P report - even something brand new.

 

[vaughan]

When the seller says no to B&P, there could be some issues. It is almost buying 'as is'.

But you ARE buying as-is whether or not you get a B&P. The B&P report just helps people work out what as-is actually is.

 

[Hypnotic Cat]

Buy you ARE buying as-is whether or not you get a B&P. The B&P report just helps people work out what as-is actually is.

Exactly...