What is the usual on this...

[mrshandyandy888]

When a contract is current on a property that is selling, and the finance/building inspection date has passed, but the purchasers want to negotiate on the building report?? Do they get an extension? Who is supposed to do what??

Any ideas of this in QLD..

 

[wylie]

My understanding of Queensland contracts is that if the building clause expires and you haven't raised any issues or objections or pulled out of the contract, it is assumed that you are going ahead with the contract, and this clause can no longer be used as an "out".

I believe the same goes for the finance clause.

Happy to be corrected though.

 

[mrshandyandy888]

Yes, that's right, but what if there are issues brought up with the building report. What is the legal way to do things then??
Are quotes required, or is it just negotiating a better price??

 

[wylie]

If you have missed the deadline on the building inspection clause on the contract, and have not raised the issue before the deadline, I believe the clause is treated as no longer negotiable.

You need to ring your solicitor to check, unless someone else can confirm this.

 

[GZM]

I think Wylie is right.

The general idea is that, before the building clause expires, you get the building report done and say "I will pull out of the contract pursuant to the building clause unless you reduce the price by X or you fix Y".

This all has to be done before the building clause expires - or else your threat to pull out the contract has no weight, because the contract is then unconditional.

 

[letiha]

Legally you only have one option, that is to pull out of the contract before the building/pest inspection date. If this has passed basically it is too late (legally that is)

Another option, is to before that date negotiate with the seller, but basically it is up to them, if you ar not satisfied your only right is to pull out of the contract before the date.

 

[LynnH]

Wylie is correct. If the deadline for the building inspection has passed, the purchasers cannot negotiate based on issues raised in the building report. The same goes for finance and pest inspection clauses.

Cheers
LynnH

 

[stumunro]

From my knowledge it is as everyone has mentioned;

The only way the purchasers could have gotten an extention is a request before it went unconditional (dates of inspections on contract have passed)

 

[mrshandyandy888]

Thanks for the replies. I now have an idea of what can happen.

Now I am wondering how many buyers pull out of contracts after they go unconditional, and how much are they up for if they do?
And no, I'm not a buyer pulling out of a contract....

 

[stumunro]

i would imagine it would be a very costly thing to pull out after it has gone unconditional, although I'm sure a few people have fallen into that hole before.

you are legally binded to carry out the settlement, if you can't then the vendor will successfully sue you for all sorts of compensations, including advertising costs, agents fees, potential loss of buyers, legal fees . .

the legal team would have a field day :X Very messy

 

[sailor]

I think Wylie is right.

The general idea is that, before the building clause expires, you get the building report done and say "I will pull out of the contract pursuant to the building clause unless you reduce the price by X or you fix Y".

This all has to be done before the building clause expires - or else your threat to pull out the contract has no weight, because the contract is then unconditional.

This also is my understanding of what the go is in Qld.