Customer satisfaction is our priority as is providing a thorough building inspection. So if you use Bestwest Building for your Building Inspection we want you to get the maximum benefit from a thorough report.

Usually the house viewing and offer making process exposes the buyer to a degree of pressure by both the selling agent and by the buyer themselves through fear of someone else buying the property. But lets not forget that there’s always another opportunity around the corner if this one doesn’t work out. For most of us buying a property is the biggest investment we ever make so it deserves much consideration and the right advice before we commit to the sale.

It’s always good to have your finance arranged in principle to ensure your purchase budget is established and also have a conveyancing/settlement agent in mind so the process is managed in a timely fashion.

We can also provide a Timber Pest Inspection which we recommend you undertake.

Let’s not forget the building inspection though, because there are a whole host of potential defects which you probably haven’t even considered. But why would you unless you get up on the roof, go into the roof space, review all the rooms, bathrooms, kitchens……the list goes on.

Most selling agents will be receptive to making your an offer subject to a pre purchase building inspection. Not surprisingly they will have a standard clause to insert into your offer. Here’s an example of just such a clause which is used by a National Real Estate Company:

“Obtaining a written report from a registered builder that the main buildings on the property are structurally sound (strong, secure, reliable)”

“The benefit of this clause is limited to items of a structural nature only and shall not apply to items of a cosmetic or maintenance nature, or minor blemishes, moisture, corrosion, cracking, weathering, general deterioration (taking into account the age of the building) unevenness and physical damage to materials and finishes.”

Let’s consider this clause for a moment! Is this clause in the buyer’s best interests or the sellers? Well, to be fair the selling real estate agent is representing the seller and not the buyer and consequently it’ll come as no surprise that the clause is very much in the sellers interests. Remember the selling agent represents the seller not the buyer.

With the help of my lawyer Michael Paterson of Michael Paterson & Associates – Commercial Lawyers on (08) 9443 5383 I have a two examples of a building inspection clause for the buyer. The first option example might be a hard clause for the selling agent to stomach but ideally here it is:

“This offer is subject to the Buyer being satisfied with the state of the property following receipt of a property inspection report.  All expenses for the property inspection report are to be paid for by the Buyer. Satisfaction in relation to the state of the property following receipt of the property inspection report is determined in the discretion of the Buyer and the Buyer’s satisfaction shall only be evidenced by the Buyer providing to the Seller, or the Seller’s agent, a letter of satisfaction with 10 business days of acceptance of the Contract.  If no letter is provided to the Seller or the Seller’s agent within 10 business days of acceptance, then this offer will come to an end without the necessity for either party to give notice to that effect.  The deposit and all other monies (if any) paid pursuant to the Contract shall be refunded to the Buyer.  The Seller agrees to provide reasonable access to the property to the Buyer/or the Buyer’s representatives for the purpose of the inspection.”

The second example might be more subtle and easier for the selling agent to stomach:

“(a) The Buyer shall take reasonable steps to obtain a property inspection report at the Buyer’s expense within 10 business days of acceptance if the contract is not subject to finance, or 10 business days of finance approval if the contact is subject to finance (the “Due Date”).

(b) The Seller agrees to provide reasonable access to the property to the Buyer/or the Buyer’s representatives for the purpose of the property inspection.

(c) If the Buyer does not take reasonable steps to obtain a property inspection report by the Due Date, the benefit of this clause shall be deemed to have been waived by the Buyer.

(d) If the Buyer does take reasonable steps to obtain a property inspection report by the Due Date, but is unable to obtain the report within that timeframe, this contact shall automatically terminate, unless the Buyer and the Seller agree to extend the time in which to obtain a property inspection report.

(e) If the Buyer obtains a property inspection report by the Due Date, or any extension agreed to by the Buyer and the Seller, this contract is subject to the Buyer being satisfied with the state of the property, in the Buyer’s absolute discretion.

(f) The Buyer shall advise the Seller within 5 business days of receipt of the property inspection report whether the Buyer is satisfied with the state of the property.

(g) If the Buyer gives notice that the Buyer is not satisfied with the property inspection report, this contact shall automatically terminate, unless the Buyer and the Seller agree to a variation of the contract to take account of the state of the property.

(h) If the Buyer does not give any notice to the Seller within 5 business days of receipt of the property inspection report, the benefit of this clause shall be deemed to have been waived by the Buyer.

(i) If the contract comes to an end as a result of this clause, the deposit and any other money paid pursuant to the Contract shall be refunded to the Buyer.”

Should you wish to verify the suitability of this clause or require any further legal advice then contact Michael Paterson of Michael Paterson & Associates – Commercial Lawyers on (08) 9443 5383.