Purchasing a property is a significant investment, and ensuring its structural and pest-related integrity is crucial. To protect your interests and ensure a smooth property transaction, it’s vital to promptly address building and pest inspections. In this blog, we’ll explore the importance of obtaining and responding to these inspection reports in a timely manner.

  1. Obtain Licensed Inspection Reports

To begin the process, it’s essential to engage licensed inspectors to conduct both building and pest inspections. These professionals are trained to evaluate the property’s structural soundness and identify any termite or pest-related concerns.

  1. The Inspection Report’s Significance

The inspection reports are more than just pieces of paper; they provide valuable insights into the property’s condition. These reports can uncover potential issues that may not be apparent during a casual viewing of the property. As a buyer, this information is critical for making informed decisions about the purchase.

  1. Timely Response

Once the inspection reports are in your possession, it’s crucial to respond promptly. The contract typically specifies a due date by which you must inform the seller whether the inspection results are satisfactory or unsatisfactory.

  1. Satisfactory or Unsatisfactory: Your Decision

Upon reviewing the inspection reports, you have the option to deem them either satisfactory or unsatisfactory. If you find the reports unsatisfactory and decide not to proceed with the purchase, it’s essential to communicate this decision to your conveyancer so they can appropriately notify the seller.

  1. Termination Options

The REIQ contract outlines specific terms for termination related to the building and pest inspections. If you do not notify the seller that the inspections are satisfactory or waived by 5:00 pm on the due date, the seller will be entitled to terminate the contract. From this point on the contract will continue, however the seller will retain the right to terminate up until such point as you satisfy the condition, waive it or notify the seller that you have elected to terminate. If you elect to terminate under the building and pest condition, the seller may ask for a copy of the inspection reports and the contract requires you to provide these without delay.

  1. A Balanced Approach

While timely action is crucial, it’s also essential to maintain a balanced approach. In the event that the inspection reports reveal minor issues, consider negotiating with the seller for potential repairs or financial adjustments. In some cases, this can lead to a mutually beneficial resolution.

Building and pest inspections are fundamental to a secure property purchase. Engaging licensed inspectors and responding to their reports promptly can make or break the deal. Whether the reports are satisfactory or unsatisfactory, ensuring you meet the contract’s terms is essential. By acting diligently, you can protect your interests and achieve a successful property transaction.

For a more in-depth understanding of building and pest inspections and their impact on your property transaction, contact our Reid Legal Group team today.