Property condition and inspections

I'm signing contracts tomorrow on a townhouse. I inspected last week, but there is a tenant in there (who will stay until a few months after settlement), with lots of furniture and 'stuff' laying around.

Apart from moving the tenant's furniture (probably not going to happen) there's no way of knowing if there's holes in the walls or water damage or something hidden, is there? Is this just a risk you've gotta take in this situation? I mean, I know some people buy sight unseen so I guess to a point you've just got to trust the owner/agent isn't concealing things. Is that right?

Also, if the building inspection shows up some issues, how big (how expensive to fix) do these problems have to be to justify you pulling out of the contract/asking for a price reduction? I know the buyer has to 'act reasonably' but really, what the hell does that mean?!

(I'm trying to hold back first home-buyer's jitters, can you tell :eek:)
 
Apart from moving the tenant's furniture (probably not going to happen)
Correct - not going to happen :)

there's no way of knowing if there's holes in the walls or water damage or something hidden, is there?
No, not really.

Is this just a risk you've gotta take in this situation?
Yes a bit HOWEVER you could ask to see the ingoing inspection report from when the current tenants moved in. This should give you can indication on what condition it should be returned to you after the tenancy ends (and you have a bond to claim on if not anyway)

I mean, I know some people buy sight unseen so I guess to a point you've just got to trust the owner/agent isn't concealing things. Is that right?
Trust no-one.

Also, if the building inspection shows up some issues, how big (how expensive to fix) do these problems have to be to justify you pulling out of the contract/asking for a price reduction?
That's entirely up to you.;)

I know the buyer has to 'act reasonably' but really, what the hell does that mean?!
The law does not define "reasonable". Hope you never have to test the meaning of the word in court.
 
The building inspector won't touch any personal belongings, so to an extent you are a bit limited in what can be discovered.

However, the main purpose is to check structural conditions. Usually structural damage is a valid reason to pull out of a contract.

Our daughter bought their PPOR 5 years ago, and there were 3 generations living in the house. The double garage was chock-a-block with boxes and other possessions, and we gave her heaps that there was no floor in there, just dirt - you could not see any concrete at all.

Thankfully once all the junk was removed there WAS a floor!!
Marg
 
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