Director of GM Law, Gerard Pagliaro shares his thoughts on this matter:
1. Is building inspection mandatory in Queensland?
The short answer is NO, however, most lawyers acting for a buyer will recommend that they conduct a building inspection, and if circumstances don’t allow for a condition to be included in the contract a lawyer will generally advise a buyer to conduct a building and pest inspection prior to going to contract.GM lawyers will always take into account the personal circumstances of their client prior to giving any advice on this issue.
2. What happens if a buyer finds some issues during a building inspection?
If a contract is negotiated with the standard REIQ or ADL building inspection condition, a buyer will have a right to terminate the contract provided they act reasonably. This is an objective test.
3. How often do issues related to building inspection arise in the GM Law practice?
It is very common for buyers to attempt to negotiate for a seller to fix items that are highlighted in a building or pest report, or alternatively seek a reduction in price. Whilst strictly speaking a buyer doesn’t usually have any legal right under the standard conditions to do this, often the buyers and the sellers cooperate to achieve a satisfactory outcome so that the contract can proceed.
4. How likely is the settlement to fail if the building inspection reveals issues that can’t be fixed within a few weeks?
Contracts can fall over if the building inspection reveals defects that the buyer was unaware of, but usually, this happens only if the issues are quite serious. Often parties are able to negotiate through these issues.
5. What is the advantage of ordering a building inspection from the seller part?
It is becoming more common these days for sellers to arrange building and pest inspections at the point of listing the property. This in our view is a good practice since it can enable you to resolve any potential issues that might arise in the contract stage. Be very careful though, if you intend giving this report to the buyer because if there is anything misleading in the report or it fails to address significant issues, and the buyer relies on this report in entering the contract, this may well expose the selling agent and the seller to a legal claim.
You can email us at AgentSupport@gmlaw.com.au to get urgent personalized support.
You can email us at AgentSupport@gmlaw.com.au to get urgent personalized support.
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