Often purchasers are in the situation of buying a property, by signing a Contract containing a pest and building special condition which generally allows 7 days from the Contract date to receive a satisfactory pest and building report.
However, often the pest and building report uncovers significant issues, raising major concerns, threatening to derail the purchase.
In this instance, I act immediately, working with my clients to assess their options.
In suitable situations, I negotiate with the vendor’s conveyancer to address the issues, requesting the vendor to either fix the damage before settlement or providing a financial concession to the purchaser at settlement.
Meanwhile if time is tight, I generally request an extension to the pest and building condition timeframe, allowing the purchaser more time to consider the situation.
If the vendor allows a reduction at settlement to cover the repair costs, the contract sale price remains the same, (which is beneficial because it allows the lending finance to provide full funds, which could potentially cover the buyer’s cost of the repairs after settlement). In this instance, it is worth mentioning that the transfer duty is payable on the sale contract price, not the reduced amount.
This case shows how a skilled Conveyancer can turn an unsatisfactory pest and building report into a successful resolution, protecting a buyer’s investment, providing peace of mind and not jeopardising the sale for both parties.